Aerohive Networks 10-Q 1 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
Entity [Abstract]
Entity Registrant Name	Aerohive Networks, Inc.
Entity Central Index Key	1,372,414
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,323,058

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 34,973	$ 27,249
Short-term investments	52,644	57,675
Accounts receivable, net of allowance for doubtful accounts of $120 and $127 as of June 30, 2018 and December 31, 2017, respectively	17,187	17,662
Inventories	11,234	13,495
Prepaid expenses and other current assets	6,689	6,396	[1]
Total current assets	122,727	122,477	[1]
Property and equipment, net	6,881	6,381
Goodwill	513	513
Other assets	5,270	4,900	[1]
Total assets	135,391	134,271	[1]
CURRENT LIABILITIES:
Accounts payable	12,395	11,946
Accrued liabilities	9,080	8,602
Debt, current	20,000	0
Deferred revenue, current	35,393	33,279	[1]
Total current liabilities	76,868	53,827	[1]
Debt, non-current	0	20,000
Deferred revenue, non-current	35,914	33,761	[1]
Other liabilities	1,687	1,769
Total liabilities	114,469	109,357	[1]
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, par value of $0.001 per share - 25,000,000 shares authorized as of June 30, 2018 and December 31, 2017; no shares issued and outstanding as of June 30, 2018 and December 31, 2017	0	0
Common stock, par value of $0.001 per share - 500,000,000 shares authorized as of June 30, 2018 and December 31, 2017; 55,320,058 and 54,171,498 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively	55	55
Additional paid–in capital	285,722	278,528
Treasury stock - 1,610,204 and 1,361,243 shares as of June 30, 2018 and December 31, 2017, respectively	(7,239)	(6,216)
Accumulated other comprehensive loss	(44)	(30)
Accumulated deficit	(257,572)	(247,423)	[1]
Total stockholders’ equity	20,922	24,914	[1]
Total liabilities and stockholders’ equity	$ 135,391	$ 134,271	[1]
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1)

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 120	$ 127
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	55,320,058	54,171,498
Common stock, shares outstanding	55,320,058	54,171,498
Treasury stock, shares outstanding	1,610,204	1,361,243

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017		Jun. 30, 2018	Jun. 30, 2017
Revenue:
Product	$ 29,268	$ 32,105	[1]	$ 54,334	$ 59,072	[1]
Subscription and support	11,207	10,096	[1]	21,908	19,458	[1]
Total revenue	40,475	42,201	[1]	76,242	78,530	[1]
Cost of revenue
Product	10,379	10,470	[1]	19,050	19,285	[1]
Subscription and support	3,383	3,153		6,787	6,329
Total cost of revenue	13,762	13,623	[1]	25,837	25,614	[1]
Gross profit	26,713	28,578	[1]	50,405	52,916	[1]
Operating expenses:
Research and development	8,581	9,222		17,860	18,772
Sales and Marketing Expense	15,731	17,411	[1]	31,401	34,848	[1]
General and administrative	5,272	5,489		11,226	11,786
Total operating expenses	29,584	32,122	[1]	60,487	65,406	[1]
Operating loss	(2,871)	(3,544)	[1]	(10,082)	(12,490)	[1]
Interest income	337	164		626	304
Interest expense	(183)	(147)		(347)	(277)
Other expense, net	(31)	(93)		(204)	(178)
Loss before income taxes	(2,748)	(3,620)		(10,007)	(12,641)
Provision for income taxes	84	197		142	294
Net loss	$ (2,832)	$ (3,817)	[1],[2]	$ (10,149)	$ (12,935)	[1],[2],[3]
Net loss per share, basic and diluted (USD per share)	$ (0.05)	$ (0.07)	[1]	$ (0.19)	$ (0.24)	[1]
Weighted-average shares used in computing net loss per share, basic and diluted	54,828,749	53,175,684		54,582,129	52,808,412
Stock-based compensation	$ 3,584	$ 4,444		$ 7,255	$ 7,997
Cost of Sales
Operating expenses:
Stock-based compensation	256	276		502	547
Research and development
Operating expenses:
Stock-based compensation	968	1,065		2,014	1,753
Sales and marketing
Operating expenses:
Stock-based compensation	1,110	1,501		2,107	2,795
General and administrative
Operating expenses:
Stock-based compensation	$ 1,250	$ 1,602		$ 2,632	$ 2,902
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1).
[2]	The Company has adjusted certain amounts have been adjusted for the retrospective change in accounting policy for revenue recognition (See Note 1).
[3]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition. (See Note 1).

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017		Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (2,832)	$ (3,817)	[1],[2]	$ (10,149)	$ (12,935)	[1],[2],[3]
Unrealized gain (loss) on available-for-sale investments, net of tax	25	(1)		(14)	(7)
Comprehensive loss	$ (2,807)	$ (3,818)	[2]	$ (10,163)	$ (12,942)	[2]
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1).
[2]	The Company has adjusted certain amounts have been adjusted for the retrospective change in accounting policy for revenue recognition (See Note 1).
[3]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition. (See Note 1).

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net loss	$ (10,149)	$ (12,935)	[1],[2],[3]
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	1,493	1,631
Stock-based compensation	7,255	7,997
Other	(274)	(30)
Changes in operating assets and liabilities:
Accounts receivable, net	475	3,261
Inventories	2,261	(2,353)
Prepaid expenses and other current assets	(293)	(967)	[2]
Other assets	(370)	(225)	[2]
Accounts payable	(105)	4,105
Accrued liabilities	478	(289)
Other liabilities	12	53
Deferred revenue	4,267	2,128	[2]
Net cash provided by operating activities	5,050	2,376	[2]
Cash flows from investing activities
Purchases of property and equipment	(1,439)	(466)
Maturities of short-term investments	38,651	18,600
Purchases of short-term investments	(33,360)	(21,782)
Net cash provided by (used in) investing activities	3,852	(3,648)
Cash flows from financing activities
Proceeds from employee stock option exercises and employee stock purchase plan	1,612	3,099
Payment for shares withheld for tax withholdings on vesting of restricted stock units	(1,673)	(451)
Payments for Repurchase of Common Stock	1,023	1,020
Payment on capital lease obligations	(94)	(83)
Net cash provided by (used in) financing activities	(1,178)	1,545
Net increase in cash and cash equivalents	7,724	273
Cash and cash equivalents at beginning of period	27,249	34,346
Cash and cash equivalents at end of period	34,973	34,619
Supplemental disclosure of cash flow information
Income taxes paid	47	175
Interest paid	355	267
Supplemental disclosure of noncash investing and financing activities
Unpaid property and equipment purchases	$ 620	$ 0
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1).
[2]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition. (See Note 1).
[3]	The Company has adjusted certain amounts have been adjusted for the retrospective change in accounting policy for revenue recognition (See Note 1).

DESCRIPTION OF BUSINESS AND SUM

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
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, access switches and SD-WAN-capable routers required to build an edge-access network; a cloud-based 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 include the accounts of Aerohive Networks, Inc. and its wholly owned subsidiaries. The Company has eliminated all intercompany accounts and transactions in consolidation. Use of Estimates When preparing the accompanying consolidated financial statements in conformity with GAAP, management makes estimates and assumptions that affect the amounts the Company reports in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, among others, the determination of a standalone selling price (SSP) of the product, software and related support and subscriptions, 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 rebate 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 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. In the first quarter of 2018, the Company adopted ASC 606, using the full retrospective method, which required the Company to restate its historical financial information to be consistent with the standard. The most significant impact of the standard related to the way the Company accounts for arrangements with its stocking distributors. The Company previously deferred the recognition of revenue and the cost of revenue from sales to these stocking distributors until the stocking distributors had sold the products to their customers (known as “sell-through” revenue recognition). Under the new standard, the Company recognizes all revenue and related cost of revenue on sales to stocking distributors upon shipment and transfer of control (known as “sell-in” revenue recognition), rather than deferring recognition until the stocking distributors report that they have sold the products to their customers, provided that all other revenue recognition criteria have been met. The Company also attributes the impact to its revenue and deferred revenue balance to the removal of the limitation on contingent revenue, which accelerates revenue recognition for certain contracts. Further, the adoption of this standard also resulted in differences in the timing of recognition of contract costs, such as sales commissions. The Company has finalized the adoption of the standard and product revenue was $113.1 million and $134.6 million for fiscal years ended December 31, 2017 and 2016, respectively, and subscription and support revenue was $40.4 million and $33.3 million for fiscal years ended December 31, 2017 and 2016, respectively. The adoption of the standard resulted in a decrease in total deferred revenue of $3.3 million as of December 31, 2017, driven by the Company's recognition in the period of revenue related to stocking distributors upon shipment and also the removal of the limitation on contingent revenue accelerating revenue recognition for certain contracts. The adoption of the standard resulted in a decrease of $0.3 million in capitalized contract costs as of December 31, 2017. The adoption of this standard did not have a significant impact on the revenue or the related costs and sales commission for the three and six months ended June 30, 2017. In addition, the adoption of the standard had no significant impact on the provision for income taxes and the net cash provided by (used in) operating, investing, or financing activities on the Company's consolidated statements of cash flows. ASC 606 Adoption Impact to Previously Reported Results The following tables present the impacts to reported results from the Company's adoption of the standard on the Company's condensed consolidated balance sheets and condensed consolidated statements of operations. Consolidated Balance Sheet (in thousands) As of December 31, 2017 As Reported Impact of Adoption As Adjusted Prepaid expenses and other current assets $ 6,513 $ (117 ) $ 6,396 Total current assets 122,594 (117 ) 122,477 Other assets 5,124 (224 ) 4,900 Total assets 134,612 (341 ) 134,271 Deferred revenue, current 34,281 (1,002 ) 33,279 Total current liabilities 54,829 (1,002 ) 53,827 Deferred revenue, non-current 36,083 (2,322 ) 33,761 Total liabilities 112,681 (3,324 ) 109,357 Accumulated deficit (250,406 ) 2,983 (247,423 ) Total stockholders' equity 21,931 2,983 24,914 Total liabilities and stockholders' equity $ 134,612 $ (341 ) $ 134,271 Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Product revenue $ 32,046 $ 59 $ 32,105 Subscription and support 10,254 (158 ) 10,096 Total Revenue 42,300 (99 ) 42,201 Cost of revenue - Product 10,616 (146 ) 10,470 Total cost of revenue 13,769 (146 ) 13,623 Gross profit 28,531 47 28,578 Sales and marketing 17,420 (9 ) 17,411 Total operating expenses 32,131 (9 ) 32,122 Operating loss (3,600 ) 56 (3,544 ) Net loss $ (3,873 ) $ 56 $ (3,817 ) Net loss per share, basic and diluted $ (0.07 ) $ — $ (0.07 ) Six Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Product revenue $ 58,916 156 59,072 Subscription and support 19,735 (277 ) 19,458 Total Revenue 78,651 (121 ) 78,530 Cost of revenue - Product 19,352 (67 ) 19,285 Total cost of revenue 25,681 (67 ) 25,614 Gross profit 52,970 (54 ) 52,916 Sales and marketing 34,859 (11 ) 34,848 Total operating expenses 65,417 (11 ) 65,406 Operating loss (12,447 ) (43 ) (12,490 ) Net loss $ (12,892 ) $ (43 ) $ (12,935 ) Net loss per share, basic and diluted $ (0.24 ) $ — $ (0.24 ) Effect on certain items in the Statement of Cash Flows (operating activities, in thousands) Six Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Cash flows from operating activities: Net loss: $ (12,892 ) $ (43 ) $ (12,935 ) Adjustments to reconcile net loss to net cash provided by operating activities: Prepaid expenses and other current assets (839 ) (128 ) (967 ) Other assets (275 ) 50 (225 ) Deferred revenue 2,007 121 2,128 Revenues by geographic location, based on the billing address of the respective channel partner’s bill-to location, which reflect the adoption of ASC 606, are as follows: (in thousands) Three Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Americas $ 29,141 $ 240 $ 29,381 Europe, Middle East and Africa 10,397 295 10,692 Asia Pacific 2,762 (634 ) 2,128 Total revenues $ 42,300 $ (99 ) $ 42,201 Six Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Americas $ 53,059 $ 218 $ 53,277 Europe, Middle East and Africa 20,230 295 20,525 Asia Pacific 5,362 (634 ) 4,728 Total revenues $ 78,651 $ (121 ) $ 78,530 Under ASC 606, the Company recognizes revenue as of the time of transfer of promised goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to from those goods or services. As shown on the condensed consolidated statement of operations, the Company derives revenue from two sources: (i) product, which includes hardware and software revenue, and (ii) subscription and support, which includes post-contract customer support (PCS) and software delivered as a service (SaaS). Beginning with its first quarter, fiscal year 2018, the Company follows the following five-step approach in recognizing revenue: • Identification of the contract, or contracts, with a customer - A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance, and (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s ability and intention to pay, which the Company bases on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. • Identification of the performance obligations in the contract - The Company identifies performance obligations promised in a contract based on the goods or services that the Company will transfer to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or services either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, the Company applies judgment to determine whether promised goods or services are capable of being distinct and distinct in the context of the contract. • Determination of the transaction price - The Company determines the transaction price based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. • Allocation of the transaction price to the performance obligations in the contract - If the contract contains a single performance obligation, the Company allocates the entire transaction price to the single performance obligation. The Company allocates the transaction price of contracts that contain multiple performance obligations to each performance obligation based on a relative SSP. The Company determines SSP based on the price at which the performance obligation is sold separately. If the Company cannot observe SSP through past transactions, the Company estimates SSP by taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. • Recognition of revenue when, or as, the Company satisfies a performance obligation - The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. The Company recognizes revenue at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. Revenue Recognition The Company’s product revenue consists of sales to distributors, and value-added resellers, or VARs and an OEM partner. The Company considers purchase orders such distributors, VARs and OEM partner issue to the Company, which are in some cases governed by master sales agreements, to be the Company's contracts with such customers, as such documents provide enforceable rights and obligations between the Company and distributor, VAR or OEM partner. As part of its consideration of the contract, the Company evaluates certain factors, including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer goods or services to be the identified performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company allocates the transaction price to each distinct performance obligation based on a relative standalone selling price. The Company recognizes revenue when control of the product or service is transferred to the customer (i.e., when the performance obligation is satisfied). Further, in determining whether control has transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership has transferred to the customer. The Company makes sales of products to most distributors under terms allowing certain price adjustments and limited rights of return (known as “stock rotation”) of the Company’s products held in their inventory. The Company recognizes revenue from sales to distributors upon the transfer of control of the product to the distributor. Frequently, distributors need to sell product at a discounted price lower than the standard distribution price in order to win business. After the Company verifies that the distributor had obtained the Company's pre-approval for the discount claim, the Company may issue a credit memo to the distributor representing a rebate of the amount of the discount. In determining the transaction price, the Company considers these price adjustments to be variable consideration. The Company estimates such price adjustments using the expected-value method based on an analysis of actual credit claims at the distributor level, over a period of time the Company considers adequate to account for current pricing and business trends. Historically, actual price adjustments relative to those the Company estimates and includes when determining the transaction price have not materially differed. Stock rotation rights provide distributor with the ability to return certain specified amounts of inventory. Stock rotation adjustments are an additional form of variable consideration which the Company also estimates using the expected-value method based on historical return rates. Historically, distributor stock rotation adjustments have not been material. The Company makes sales to certain distributors, VARs and its OEM partner under terms that do not include rights of return or price concessions after the product is shipped. Accordingly, upon application of steps one through five above, the Company recognizes product revenue upon shipment and transfer of control. The Company generally provides a limited lifetime warranty that its products will substantially conform to the published specifications. The Company limits its liability to either a credit equal to the purchase price or replacement of the defective part. The Company does not consider activities related to such warranty a separate performance obligation. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 90 days. In instances where the timing of the Company's revenue recognition differs from the timing of its invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of the Company's invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not for the Company's customers to provide financing or for the Company to provide customers with financing. The Company records accounts receivable at the invoiced amount, net of an allowance for doubtful accounts. The Company recognizes a receivable in the period the Company delivers goods or provide services or when the Company's right to consideration is unconditional. Significant Judgments The Company's contracts with customers often include promises to transfer multiple products and services to a customer. The Company may exercise significant judgment when determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together. The Company may also exercise judgment to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the hardware and recognized upon transfer of control. The Company may further require judgment to determine the SSP for each distinct performance obligation. The Company determines SSP for the purposes of allocating the arrangement, primarily based on historical transaction pricing. The Company segregates historical transactions based on its pricing model and go-to-market strategy, which includes factors such as type of sales channel (VAR, OEM or distributor), the geographies in which the Company sells its products and services (domestic or international) and offering type (product series, software subscriptions and level of support for PCS). Disaggregation of Revenue Product Revenue - The Company’s product revenue consists of revenue from the sale of the Company’s hardware products, which each contain embedded HiveOS software, the Company's proprietary operating system that is not considered to be distinct in the context of the contract. Therefore, the Company considers its hardware appliances together with related embedded HiveOS software (collectively, the "hardware”) as a single performance obligation. The Company transfers these items to the customer concurrently. The Company recognizes hardware revenue upon transfer of control to its customers, which occurs upon shipment. The Company’s product revenue includes the sales of software licenses of HiveManager, a license-based unified networking management system, which consists of the purchase of a perpetual license of the HiveManager software. The Company generally recognizes revenue from its software licenses upon transfer of control to its customers. Subscription and Support Revenue - The Company’s subscription and support revenue consists of revenue from SaaS and PCS arrangements. SaaS arrangements with customers do not provide the right to take possession of the software at any time during the hosting period and have a defined contract term. PCS arrangements include software updates, access to technical support personnel, and expedited replacement of defective hardware products. Each of the promised services is distinct in the context of the contract as the services are not inputs to a combined output for which the Company provides any significant integration service, the provision of each service does not significantly modify or customize the other, and the Company could provide each service independently of the other. Though the Company has identified that each of the performance obligations is distinct, as each of the performance obligations represents a series of distinct services that has the same pattern of transfer (stand ready obligations) and the same measure of progress of transfer (days of service) the Company will account for the all series as a single performance obligation. The Company recognizes revenue from SaaS and PCS arrangements on a straight-line basis over the service contract term, which is typically one, three or five years. The contract term typically commences upon transfer of control of the corresponding products to our customer. See the condensed consolidated statement of operations for the Company's product revenue and subscription and support revenue amounts for the three and six months ended June 30, 2018 and 2017, respectively. Costs to Obtain and Fulfill a Contract The Company capitalizes certain contract acquisition costs consisting primarily of commissions paid and the related payroll taxes when customer contracts are signed. The Company capitalizes commission expenses earned by sales personnel and the related payroll taxes that are incremental to obtaining customer contracts. The Company amortizes deferred sales commission amounts based on the expected future revenue streams under the customer contracts. The Company includes amortization of deferred sales commissions in sales and marketing expense in the accompanying consolidated statements of operations. The Company classifies deferred commissions as current or non-current based on the timing of when the Company expects to recognize the expense. The Company periodically reviews these costs for impairment. The Company records deferred revenue when it invoices the customer, collection is probable, and the associated revenue has not yet been earned. The current portion of deferred revenue represents the amounts the Company expects to be recognized as revenue within one year of the condensed consolidated balance sheet date. See Note 3, Consolidated Balance Sheet Components, for the changes in the deferred revenue and deferred commissions during the three and six months ended June 30, 2018 and 2017, respectively. Contracted-but-not-recognized revenue The Company's contracted but not invoiced performance obligations do not include the option for its customers to cancel. The Company's revenue allocated to remaining performance obligations represents contracted revenue that the Company has not yet recognized (“contracted not recognized”), which includes deferred revenue and non-cancelable amounts that the Company will invoice and recognize as revenue in future periods. Contracted-but-not-recognized revenue was $76.2 million as of June 30, 2018, of which the Company expects to recognize approximately 53% over the next 12 months and the remainder thereafter. Other Recently Adopted Accounting Pronouncements 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. In February 2018, the FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments, to clarify certain aspects of ASU No. 2016-01. We adopted these standards effective January 1, 2018. The Company's adoption of these standards did not have a material impact on the Company's 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 adopted ASU 2016-15 in the first quarter of 2018. The Company's adoption of this standard did not have a material impact on the Company's financial statements. Recent Accounting Pronouncements 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 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, and commercial paper. The Company sells its products primarily to channel partners, which include value-added resellers, or VARs, distributors, managed service providers, or MSPs, and original equipment manufacturers, or OEMs. 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 distributors 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 (Distributor A and Distributor B) greater than 10% of total consolidated revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) Distributor A 14.8 % 13.9 % 16.0 % 14.5 % Distributor B 39.7 % 18.1 % 37.5 % 18.7 % The percentages of receivables from Distributor A and Distributor B greater than 10% of total consolidated accounts receivable were as follows: June 30, December 31, 2018 2017 Distributor A 21.4 % 27.9 % Distributor B 22.4 % 29.4 %

FAIR VALUE DISCLOSURE

FAIR VALUE DISCLOSURE	6 Months Ended
	Jun. 30, 2018
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 the Company uses 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 June 30, 2018 and December 31, 2017, respectively. Level 1 assets include highly liquid money market funds that the Company includes 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. The components of the Company’s Level 1 and Level 2 assets are as follows: June 30, 2018 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 11,088 — 11,088 11,088 — $ 11,088 $ — $ 11,088 $ 11,088 $ — Level 2: U.S. treasuries 9,438 (12 ) 9,426 — 9,426 Corporate securities 15,890 (32 ) 15,858 — 15,858 Commercial paper 29,355 — 29,355 1,995 27,360 $ 54,683 $ (44 ) $ 54,639 $ 1,995 $ 52,644 Total $ 65,771 $ (44 ) $ 65,727 $ 13,083 $ 52,644 December 31, 2017 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 7,538 — 7,538 7,538 — $ 7,538 $ — $ 7,538 $ 7,538 $ — Level 2: U.S. treasuries 9,480 (3 ) 9,477 — 9,477 Corporate securities 15,293 (27 ) 15,266 — 15,266 Commercial paper 32,932 — 32,932 — 32,932 $ 57,705 $ (30 ) $ 57,675 $ — $ 57,675 Total $ 65,243 $ (30 ) $ 65,213 $ 7,538 $ 57,675 All short-term investments the Company held as of June 30, 2018 and December 31, 2017 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 June 30, 2018 and December 31, 2017.

CONSOLIDATED BALANCE SHEET COMP

CONSOLIDATED BALANCE SHEET COMPONENTS	6 Months Ended
	Jun. 30, 2018
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: June 30, December 31, 2018 2017 (As Adjusted) (in thousands) Deferred sales commissions, current portion $ 3,279 $ 3,072 Prepaid expenses 2,808 2,543 Other 602 781 Total prepaid expenses and other current assets $ 6,689 $ 6,396 Property and Equipment, net Property and equipment, net consists of the following: June 30, December 31, Estimated Useful Lives 2018 2017 (in thousands) Computer and other equipment 3 years $ 1,731 $ 1,713 Manufacturing, research and development laboratory equipment 3 years 5,503 4,630 Software 2 to 5 years 9,230 8,182 Office furniture and equipment 3 to 7 years 2,061 2,061 Leasehold improvements shorter of useful life or lease term 1,035 1,017 Property and equipment, gross 19,560 17,603 Less: Accumulated depreciation and amortization (12,679 ) (11,222 ) Property and equipment, net $ 6,881 $ 6,381 The software category includes the capitalized software for the Company's cloud service platform. The Company amortizes 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 $0.8 million and $0.8 million for the three months ended June 30, 2018 and 2017, respectively, and $1.5 million and $1.6 million for the six months ended June 30, 2018 and 2017, respectively. Office furniture and equipment classified under capital lease was $1.2 million at June 30, 2018 and December 31, 2017 respectively, and the related accumulated depreciation was $0.5 million and $0.4 million at June 30, 2018 and December 31, 2017, respectively. Other assets Other assets consist of the following: June 30, December 31, 2018 2017 (As Adjusted) (in thousands) Deferred sales commissions, non-current portion $ 3,196 $ 2,947 Investment in privately held company 1,500 1,500 Other 574 453 Total other assets $ 5,270 $ 4,900 Deferred Commission The current portion of deferred commission represents the amounts that the Company expects to be recognized as commission expense within one year of the consolidated balance sheet date. Significant changes in the balance of total deferred commission (contract asset) during the three and six months ended June 30, 2018 and 2017 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) (in thousands) (in thousands) Beginning balance $ 6,085 $ 5,958 $ 6,019 $ 5,766 Recognized (3,749 ) (4,069 ) (6,767 ) (7,293 ) Additions 4,139 4,460 7,223 7,876 Total Deferred Commission $ 6,475 $ 6,349 $ 6,475 $ 6,349 Current portion $ 3,279 $ 3,173 $ 3,279 $ 3,173 Non-current portion $ 3,196 $ 3,176 $ 3,196 $ 3,176 Of the $6.5 million total deferred commission balance as of June 30, 2018, the Company expects to recognize approximately 51% as commission expense over the next 12 months and the remainder thereafter. 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 canceled. The accrued interest on the note was immaterial. 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 elected the measurement alternative. As of June 30, 2018 , the Company carried the investment at the value of original principal and the Company reviews such carried value quarterly for indicators of fair value changes when there are observable prices less any potential impairment. The Company did not recognize a change in value or impairment for the three months ended June 30, 2018 and 2017, as there were no identified events or changes in circumstances that might have a significant impact on the carrying value. The Company has classified the investment as other assets on the condensed consolidated balance sheet. Accrued Liabilities Accrued liabilities consist of the following: June 30, December 31, 2018 2017 (in thousands) Accrued compensation $ 7,806 $ 6,971 Accrued expenses and other liabilities 1,060 1,385 Warranty liability, current portion 214 246 Total accrued liabilities $ 9,080 $ 8,602 Deferred Revenue The current portion of deferred revenue represents the amounts that the Company expects to recognize as revenue within one year of the consolidated balance sheet date. Significant changes in the balance of total deferred revenue (contract liability) during the three and six months ended June 30, 2018 and 2017 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) (in thousands) (in thousands) Beginning balance $ 67,878 $ 62,264 $ 67,040 $ 63,239 Recognized (11,207 ) (10,096 ) (21,908 ) (19,458 ) Additions 14,636 13,201 26,175 21,588 Total Deferred Revenue $ 71,307 $ 65,369 $ 71,307 $ 65,369 Current portion $ 35,393 $ 32,053 $ 35,393 $ 32,053 Non-current portion $ 35,914 $ 33,316 $ 35,914 $ 33,316 Of the $71.3 million total deferred revenue balance as of June 30, 2018, the Company expects to recognize approximately 50% as revenue over the next 12 months and the remainder thereafter. Warranty Liability The following table summarizes the activity related to the Company’s accrued liability for estimated future warranty: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Beginning balance $ 546 $ 857 $ 577 $ 975 Charges to operations 148 230 274 351 Obligations fulfilled (154 ) (142 ) (307 ) (339 ) Changes in existing warranty — (15 ) (4 ) (57 ) Total product warranties $ 540 $ 930 $ 540 $ 930 Current portion $ 214 $ 575 $ 214 $ 575 Non-current portion $ 326 $ 355 $ 326 $ 355 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	6 Months Ended
	Jun. 30, 2018
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 3.68% and 2.90% for the three months ended June 30, 2018 and 2017, respectively, and 3.48% and 2.74% for the six months ended June 30, 2018 and 2017, 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 June 30, 2018 , 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 June 30, 2018 , $20.0 million remains outstanding under the Revolving Credit Facility, and the Company classifies this amount as a current liability in the condensed consolidated balance sheet.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
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 September 2022. 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 June 30, 2018 are as follows: Amount Year Ending December 31, (in thousands) 2018 (remaining six months) $ 922 2019 1,592 2020 1,103 2021 1,090 2022 999 Thereafter 445 Total $ 6,151 Rent expense was $0.5 million for the three months ended June 30, 2018 and 2017, respectively, and was $1.0 million for the six months ended June 30, 2018 and 2017, respectively. Capital Lease Obligations The Company has certain office furniture and equipment that it classifies 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 June 30, 2018 are as follows: Amount Year Ending December 31, (in thousands) 2018 (remaining six months) $ 91 2019 178 2020 172 2021 170 2022 162 Thereafter 83 Total $ 856 Manufacturing Commitments The Company subcontracts with manufacturing companies to manufacture its hardware. 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 June 30, 2018 and December 31, 2017, the Company had manufacturing commitments with contract manufacturers for inventory totaling approximately $5.6 million and $6.0 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 security litigations: In January 2018, three purported class actions were filed in the United States District Court for the Northern District of California against the Company and two of its officers. The actions are McGovney v. Aerohive Networks, Inc., et al., Case No. 5:18-cv-00435, Beyerbach v. Aerohive Networks, Inc., et al., Case No. 5:18-cv-0544 and Panjabi v. Aerohive Networks, Inc., et al., Case No. 5:18-cv-00656. The complaints allege that the defendants made false and misleading statements, in particular regarding the Company’s financial outlook for the fourth quarter of 2017. The complaints assert claims for violations of Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5 on behalf of those who purchased the Company’s common stock between November 1, 2017 and January 16, 2018, inclusive. The complaints seek monetary damages in an unspecified amount. On March 20, 2018, three shareholders filed respective motions to consolidate the three cases and to be appointed lead plaintiff for a class. The Company anticipates that these cases will be consolidated and that a court-appointed lead plaintiff will file a consolidated complaint later this year. On March 26, 2018, a purported shareholder derivative complaint was filed in the California Superior Court for the County of Santa Clara against the Company’s board of directors and two of its officers. The action is titled Flores v. Flynn, et.al , Case No. 18CV325517. The complaint alleges that the same general conduct alleged in the securities class actions also constituted a breach of fiduciary duty, waste of corporate assets, abuse of control, mismanagement, and unjust enrichment. The complaint seeks monetary damages in an unspecified amount, restitution, and certain changes to the Company’s corporate governance and internal procedures. On July 9, 2018, pursuant to a stipulation between the parties, the Court stayed the case until the completion of the motion-to-dismiss stage of the federal class actions described above. The outcomes of the legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to the Company's operating results and cash flows for any particular period. 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	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY Common Stock reserved for Future Issuance As of June 30, 2018 , the Company had the following reserved shares of common stock for future issuance: June 30, 2018 Common stock reserved for future grant under the 2014 Equity Incentive Plan 8,737,969 Common stock reserved for future purchase under the 2014 Employee Stock Purchase Plan 1,680,335 Options and Restricted Stock Units issued and outstanding 9,401,668 Total reserved shares of common stock for future issuance 19,819,972 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, the Company's board of directors extended this program to June 30, 2018 . In November 2017, the Company's board of directors increased the authorized amount under this program to $20.0 million . In July 2018, the Company's board of directors extended this program through June 30, 2020 . During the three and six months ended June 30, 2018 , the Company repurchased a total of 248,961 shares of its common stock on the open market at a total cost of $1.0 million with an average price per share of $4.11 . During the three and six months ended June 30, 2017, the Company repurchased a total of 208,779 shares at a total cost of $1.0 million with an average price per share of $4.88 . As of June 30, 2018, the Company had repurchased under this program 1,610,204 shares of its common stock at a total price $7.2 million with an average purchase price $4.50 per share of our common stock. Approximately $12.8 million remains available to the Company as of June 30, 2018 for repurchases under this program.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
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 2018, the Company effected an increase of 2,708,575 shares reserved under the 2014 Plan. As of June 30, 2018 , the Company had 8,737,969 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 June 30, 2018 : Shares Available for Grant Balance, December 31, 2017 7,997,691 Authorized 2,708,575 Options granted — Options canceled 184,336 Awards granted (3,018,557 ) Awards canceled 865,924 Balance, June 30, 2018 8,737,969 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, 2017 4,247,911 $ 6.03 5.80 $ 4,472 Options granted — — Options exercised (13,525 ) 1.54 Options canceled (184,336 ) 6.27 Balance, June 30, 2018 4,050,050 $ 6.03 5.20 $ 2,506 Options exercisable, June 30, 2018 3,635,238 $ 5.97 4.96 $ 2,506 There were no options granted during the three and six months ended June 30, 2018 and 2017. The aggregate intrinsic value of stock options exercised during the three months ended June 30, 2018 and 2017 was $0.01 million and $0.8 million , respectively and during the six months ended June 30, 2018 was $0.04 million and $1.2 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 was $0.4 million and $0.9 million , respectively, during the three months ended June 30, 2018 and 2017, respectively, and $1.0 million and $1.9 million during the six months ended June 30, 2018 and 2017, respectively. Restricted Stock Units The Company currently grants Restricted Stock Units (RSUs) to certain employees and directors. The RSUs 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 grant activity and related information for the three months ended June 30, 2018 : Restricted Stock Units Outstanding Shares Weighted-Average Fair Value Per Share Balance, December 31, 2017 4,089,067 $ 6.47 Awards granted 3,018,557 4.14 Awards vested (1,287,284 ) 5.28 Awards canceled (468,722 ) 5.34 Balance, June 30, 2018 5,351,618 $ 4.72 The weighted-average grant-date fair value of RSUs the Company granted during the three months ended June 30, 2018 and 2017 was $4.12 and $4.96 per share, respectively, and during the six months ended June 30, 2018 and 2017 was $4.14 and $4.97 per share, respectively. The aggregate grant-date fair value of RSUs the Company granted during the three months ended June 30, 2018 and 2017 was $11.2 million and $11.8 million , respectively, and during the six months ended June 30, 2018 and 2017 was $12.5 million and $15.9 million , respectively. The aggregate fair value of shares vested as of the respective vesting dates during the three months ended June 30, 2018 and 2017 was $2.6 million and $2.4 million , respectively, and during the six months ended June 30, 2018 and 2017 was $6.8 million and $4.6 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 June 30, 2018 and 2017, the Company withheld 141,173 and 25,209 shares of stock, respectively, for an aggregate value of $0.6 million and $0.1 million , respectively. During the six months ended June 30, 2018 and 2017, the Company withheld 397,202 and 95,577 shares of stock, respectively, for an aggregate value of $1.7 million and $0.5 million , respectively. The Company returned such withheld shares to the 2014 Plan, which were then available under the plan terms for future issuance. In the three months ended March 31, 2017, the Company granted 378,644 shares of RSUs as performance-based restricted stock units (PBRSUs) to certain executives 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. 251,037 of these PBRSU awards vested during the six months ended June 30, 2018. No additional PBRSU expected to vest during the remainder of the fiscal year 2018. The Company did not grant any PBRSUs during the three and six months ended June 30, 2018. The Company granted 351,500 and 358,000 market-based restricted stock units (MBRSUs) to certain executives during the three months ended June 30, 2018 and 2017 respectively, 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 MBRSUs granted during the three months ended June 30, 2018 and 2017 was $3.05 and $4.18 per share, respectively. The Company records the total expense related to all of the MBRSUs on a graded-vesting method over the estimated term. 36,625 and 73,250 shares of these MBRSU awards vested during the three and six months ended June 30, 2018, respectively. Additional 73,250 MBRSUs are expected to vest during the remainder of the fiscal year 2018. 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 2018, the Company effected an increase of 541,715 shares reserved under the ESPP. As of June 30, 2018 , the Company had 1,680,335 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, 2018, 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. During the six months ended June 30, 2018 and 2017, the Company issued 493,914 and 563,174 shares respectively, under the ESPP. Determination of Fair Values The Company used the following weighted-average assumptions to value MBRSUs under the Monte Carlo model: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 MBRSUs: Expected volatility 44 % 46 % 44 % 46 % Risk free interest rate 2.61 % 1.45 % 2.61 % 1.45 % The Company used the following weighted-average assumptions to value employee stock purchase rights under the Black-Scholes model: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 ESPP purchase rights: Expected term (in years) 0.50 - 1.00 0.50 - 1.00 0.50 - 1.00 0.50 - 1.00 Expected volatility 46% - 52% 34% - 39% 46% - 52% 34% - 39% Risk free interest rate 1.45% - 2.10% 0.60% - 1.07% 1.45% - 2.10% 0.60% - 1.07% Stock-based Compensation Expense The Company recognized total stock-based compensation for stock-based awards in the condensed consolidated statements of operations as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Cost of revenue $ 256 $ 276 $ 502 $ 547 Research and development 968 1,065 2,014 1,753 Sales and marketing 1,110 1,501 2,107 2,795 General and administrative 1,250 1,602 2,632 2,902 Total stock-based compensation $ 3,584 $ 4,444 $ 7,255 $ 7,997 The following table presents stock-based compensation expense by award-type: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Stock Options $ 480 $ 820 $ 1,021 $ 1,703 Restricted Stock Units 2,573 3,193 5,365 5,463 Employee Stock Purchase Plan 531 431 869 831 Total stock-based compensation $ 3,584 $ 4,444 $ 7,255 $ 7,997 The stock-based compensation expense the Company recorded for restricted stock units for the three months ended June 30, 2018 and 2017 includes the amount of stock-based compensation recorded for MBRSUs of approximately $0.2 million and $0.3 million , respectively, and for the three months ended June 30, 2017 includes the amount of stock-based compensation the Company recorded for PBRSUs of approximately $0.3 million . The stock-based compensation expense the Company recorded for restricted stock units for the six months ended June 30, 2018 and 2017 includes the amount of stock-based compensation the Company recorded for PBRSUs of approximately $0.2 million and $0.5 million , respectively and MBRSUs of approximately $0.4 million and $0.3 million , respectively. As of June 30, 2018 , unrecognized stock-based compensation related to outstanding stock options, RSUs (including PBRSUs and MBRSUs) and ESPP purchase rights, was $1.3 million , $21.5 million and $0.7 million , respectively, which the Company expects to recognize over weighted-average periods of 0.98 years , 2.15 years and 0.42 years , respectively.

NET LOSS PER SHARE

NET LOSS PER SHARE	6 Months Ended
	Jun. 30, 2018
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 Company's computation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) (in thousands, except for share and per share data) Numerator: Net loss $ (2,832 ) $ (3,817 ) $ (10,149 ) $ (12,935 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 54,828,749 53,175,684 54,582,129 52,808,412 Net loss per share: Basic and diluted $ (0.05 ) $ (0.07 ) $ (0.19 ) $ (0.24 ) The Company excluded the following period-end outstanding common stock equivalents from its computation of diluted net loss per share for the periods presented because including them would have been antidilutive: As of June 30, 2018 2017 Shares of common stock issuable under the Equity Incentive Plan 9,401,668 10,396,671 Employee Stock Purchase Plan 106,558 96,199 Total 9,508,226 10,492,870

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company's provision for income taxes was approximately $0.1 million and $0.2 million , respectively, for the three months ended June 30, 2018 and 2017, and was approximately $0.1 million and $0.3 million , respectively, for the six months ended June 30, 2018 and 2017, respectively. The Company's provision for income taxes consisted primarily of state taxes and foreign income taxes. For the three and six months ended June 30, 2018 and 2017, the Company's 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 June 30, 2018 and December 31, 2017, respectively. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one‑time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (6) creating the base erosion anti‑abuse tax (“BEAT”), a new minimum tax; (7) creating a new limitation on deductible interest expense; and (8) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. The Company has not completed its accounting assessment for the effects of the Tax Act; however, based on its initial assessment, the Company has determined that the Tax Act did not have a material effect on its consolidated financial statements for the three and six months ended June 30, 2018 .

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2018
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) (in thousands) Americas $ 23,401 $ 29,381 $ 44,231 $ 53,277 Europe, Middle East and Africa 12,667 10,692 24,567 20,525 Asia Pacific 4,407 2,128 7,444 4,728 Total revenues $ 40,475 $ 42,201 $ 76,242 $ 78,530 The Company has included within Americas in the above table revenue from sales in the United States of $21.9 million and $27.4 million , respectively, for the three months ended June 30, 2018 and 2017. Aside from the United States, no country comprised 10% or more of the Company's total revenue for each of the three months ended June 30, 2018 and 2017, respectively. Property and equipment, net by location is summarized as follows: June 30, December 31, 2018 2017 (in thousands) United States $ 5,257 $ 5,323 People's Republic of China 1,445 875 United Kingdom 179 183 Total property and equipment, net $ 6,881 $ 6,381

SUBSEQUENT EVENTS (Notes)

SUBSEQUENT EVENTS (Notes)	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On August 1, 2018, the Company disclosed that its Board of Directors had extended to June 30, 2020 , a stock repurchase program of up to $20.0 million , which program the Board of Directors had initially approved in February 2016. The repurchase program authorizes stock purchases 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. As extended by the Board of Directors, the authorization will automatically expire without further action by the Board as of June 30, 2020 . On July 27, 2018, Changming Liu, a member of the Board of Directors of the Company, informed the Company of his resignation as a director of the Company effective July 31, 2018. Mr. Liu's resignation is not due to any disagreement with the Company related to its operations, policies or practices.

DESCRIPTION OF BUSINESS AND S18

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
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, access switches and SD-WAN-capable routers required to build an edge-access network; a cloud-based 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 include the accounts of Aerohive Networks, Inc. and its wholly owned subsidiaries.
Consolidation	The Company has eliminated all intercompany accounts and transactions in consolidation.
Use of Estimates	Use of Estimates When preparing the accompanying consolidated financial statements in conformity with GAAP, management makes estimates and assumptions that affect the amounts the Company reports in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, among others, the determination of a standalone selling price (SSP) of the product, software and related support and subscriptions, 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 rebate 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 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. In the first quarter of 2018, the Company adopted ASC 606, using the full retrospective method, which required the Company to restate its historical financial information to be consistent with the standard. The most significant impact of the standard related to the way the Company accounts for arrangements with its stocking distributors. The Company previously deferred the recognition of revenue and the cost of revenue from sales to these stocking distributors until the stocking distributors had sold the products to their customers (known as “sell-through” revenue recognition). Under the new standard, the Company recognizes all revenue and related cost of revenue on sales to stocking distributors upon shipment and transfer of control (known as “sell-in” revenue recognition), rather than deferring recognition until the stocking distributors report that they have sold the products to their customers, provided that all other revenue recognition criteria have been met. The Company also attributes the impact to its revenue and deferred revenue balance to the removal of the limitation on contingent revenue, which accelerates revenue recognition for certain contracts. Further, the adoption of this standard also resulted in differences in the timing of recognition of contract costs, such as sales commissions. The Company has finalized the adoption of the standard and product revenue was $113.1 million and $134.6 million for fiscal years ended December 31, 2017 and 2016, respectively, and subscription and support revenue was $40.4 million and $33.3 million for fiscal years ended December 31, 2017 and 2016, respectively. The adoption of the standard resulted in a decrease in total deferred revenue of $3.3 million as of December 31, 2017, driven by the Company's recognition in the period of revenue related to stocking distributors upon shipment and also the removal of the limitation on contingent revenue accelerating revenue recognition for certain contracts. The adoption of the standard resulted in a decrease of $0.3 million in capitalized contract costs as of December 31, 2017. The adoption of this standard did not have a significant impact on the revenue or the related costs and sales commission for the three and six months ended June 30, 2017. In addition, the adoption of the standard had no significant impact on the provision for income taxes and the net cash provided by (used in) operating, investing, or financing activities on the Company's consolidated statements of cash flows. ASC 606 Adoption Impact to Previously Reported Results The following tables present the impacts to reported results from the Company's adoption of the standard on the Company's condensed consolidated balance sheets and condensed consolidated statements of operations. Consolidated Balance Sheet (in thousands) As of December 31, 2017 As Reported Impact of Adoption As Adjusted Prepaid expenses and other current assets $ 6,513 $ (117 ) $ 6,396 Total current assets 122,594 (117 ) 122,477 Other assets 5,124 (224 ) 4,900 Total assets 134,612 (341 ) 134,271 Deferred revenue, current 34,281 (1,002 ) 33,279 Total current liabilities 54,829 (1,002 ) 53,827 Deferred revenue, non-current 36,083 (2,322 ) 33,761 Total liabilities 112,681 (3,324 ) 109,357 Accumulated deficit (250,406 ) 2,983 (247,423 ) Total stockholders' equity 21,931 2,983 24,914 Total liabilities and stockholders' equity $ 134,612 $ (341 ) $ 134,271 Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Product revenue $ 32,046 $ 59 $ 32,105 Subscription and support 10,254 (158 ) 10,096 Total Revenue 42,300 (99 ) 42,201 Cost of revenue - Product 10,616 (146 ) 10,470 Total cost of revenue 13,769 (146 ) 13,623 Gross profit 28,531 47 28,578 Sales and marketing 17,420 (9 ) 17,411 Total operating expenses 32,131 (9 ) 32,122 Operating loss (3,600 ) 56 (3,544 ) Net loss $ (3,873 ) $ 56 $ (3,817 ) Net loss per share, basic and diluted $ (0.07 ) $ — $ (0.07 ) Six Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Product revenue $ 58,916 156 59,072 Subscription and support 19,735 (277 ) 19,458 Total Revenue 78,651 (121 ) 78,530 Cost of revenue - Product 19,352 (67 ) 19,285 Total cost of revenue 25,681 (67 ) 25,614 Gross profit 52,970 (54 ) 52,916 Sales and marketing 34,859 (11 ) 34,848 Total operating expenses 65,417 (11 ) 65,406 Operating loss (12,447 ) (43 ) (12,490 ) Net loss $ (12,892 ) $ (43 ) $ (12,935 ) Net loss per share, basic and diluted $ (0.24 ) $ — $ (0.24 ) Effect on certain items in the Statement of Cash Flows (operating activities, in thousands) Six Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Cash flows from operating activities: Net loss: $ (12,892 ) $ (43 ) $ (12,935 ) Adjustments to reconcile net loss to net cash provided by operating activities: Prepaid expenses and other current assets (839 ) (128 ) (967 ) Other assets (275 ) 50 (225 ) Deferred revenue 2,007 121 2,128 Revenues by geographic location, based on the billing address of the respective channel partner’s bill-to location, which reflect the adoption of ASC 606, are as follows: (in thousands) Three Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Americas $ 29,141 $ 240 $ 29,381 Europe, Middle East and Africa 10,397 295 10,692 Asia Pacific 2,762 (634 ) 2,128 Total revenues $ 42,300 $ (99 ) $ 42,201 Six Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Americas $ 53,059 $ 218 $ 53,277 Europe, Middle East and Africa 20,230 295 20,525 Asia Pacific 5,362 (634 ) 4,728 Total revenues $ 78,651 $ (121 ) $ 78,530 Under ASC 606, the Company recognizes revenue as of the time of transfer of promised goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to from those goods or services. As shown on the condensed consolidated statement of operations, the Company derives revenue from two sources: (i) product, which includes hardware and software revenue, and (ii) subscription and support, which includes post-contract customer support (PCS) and software delivered as a service (SaaS). Beginning with its first quarter, fiscal year 2018, the Company follows the following five-step approach in recognizing revenue: • Identification of the contract, or contracts, with a customer - A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance, and (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s ability and intention to pay, which the Company bases on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. • Identification of the performance obligations in the contract - The Company identifies performance obligations promised in a contract based on the goods or services that the Company will transfer to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or services either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, the Company applies judgment to determine whether promised goods or services are capable of being distinct and distinct in the context of the contract. • Determination of the transaction price - The Company determines the transaction price based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. • Allocation of the transaction price to the performance obligations in the contract - If the contract contains a single performance obligation, the Company allocates the entire transaction price to the single performance obligation. The Company allocates the transaction price of contracts that contain multiple performance obligations to each performance obligation based on a relative SSP. The Company determines SSP based on the price at which the performance obligation is sold separately. If the Company cannot observe SSP through past transactions, the Company estimates SSP by taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. • Recognition of revenue when, or as, the Company satisfies a performance obligation - The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. The Company recognizes revenue at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. Revenue Recognition The Company’s product revenue consists of sales to distributors, and value-added resellers, or VARs and an OEM partner. The Company considers purchase orders such distributors, VARs and OEM partner issue to the Company, which are in some cases governed by master sales agreements, to be the Company's contracts with such customers, as such documents provide enforceable rights and obligations between the Company and distributor, VAR or OEM partner. As part of its consideration of the contract, the Company evaluates certain factors, including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer goods or services to be the identified performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company allocates the transaction price to each distinct performance obligation based on a relative standalone selling price. The Company recognizes revenue when control of the product or service is transferred to the customer (i.e., when the performance obligation is satisfied). Further, in determining whether control has transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership has transferred to the customer. The Company makes sales of products to most distributors under terms allowing certain price adjustments and limited rights of return (known as “stock rotation”) of the Company’s products held in their inventory. The Company recognizes revenue from sales to distributors upon the transfer of control of the product to the distributor. Frequently, distributors need to sell product at a discounted price lower than the standard distribution price in order to win business. After the Company verifies that the distributor had obtained the Company's pre-approval for the discount claim, the Company may issue a credit memo to the distributor representing a rebate of the amount of the discount. In determining the transaction price, the Company considers these price adjustments to be variable consideration. The Company estimates such price adjustments using the expected-value method based on an analysis of actual credit claims at the distributor level, over a period of time the Company considers adequate to account for current pricing and business trends. Historically, actual price adjustments relative to those the Company estimates and includes when determining the transaction price have not materially differed. Stock rotation rights provide distributor with the ability to return certain specified amounts of inventory. Stock rotation adjustments are an additional form of variable consideration which the Company also estimates using the expected-value method based on historical return rates. Historically, distributor stock rotation adjustments have not been material. The Company makes sales to certain distributors, VARs and its OEM partner under terms that do not include rights of return or price concessions after the product is shipped. Accordingly, upon application of steps one through five above, the Company recognizes product revenue upon shipment and transfer of control. The Company generally provides a limited lifetime warranty that its products will substantially conform to the published specifications. The Company limits its liability to either a credit equal to the purchase price or replacement of the defective part. The Company does not consider activities related to such warranty a separate performance obligation. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 90 days. In instances where the timing of the Company's revenue recognition differs from the timing of its invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of the Company's invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not for the Company's customers to provide financing or for the Company to provide customers with financing. The Company records accounts receivable at the invoiced amount, net of an allowance for doubtful accounts. The Company recognizes a receivable in the period the Company delivers goods or provide services or when the Company's right to consideration is unconditional. Significant Judgments The Company's contracts with customers often include promises to transfer multiple products and services to a customer. The Company may exercise significant judgment when determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together. The Company may also exercise judgment to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the hardware and recognized upon transfer of control. The Company may further require judgment to determine the SSP for each distinct performance obligation. The Company determines SSP for the purposes of allocating the arrangement, primarily based on historical transaction pricing. The Company segregates historical transactions based on its pricing model and go-to-market strategy, which includes factors such as type of sales channel (VAR, OEM or distributor), the geographies in which the Company sells its products and services (domestic or international) and offering type (product series, software subscriptions and level of support for PCS). Disaggregation of Revenue Product Revenue - The Company’s product revenue consists of revenue from the sale of the Company’s hardware products, which each contain embedded HiveOS software, the Company's proprietary operating system that is not considered to be distinct in the context of the contract. Therefore, the Company considers its hardware appliances together with related embedded HiveOS software (collectively, the "hardware”) as a single performance obligation. The Company transfers these items to the customer concurrently. The Company recognizes hardware revenue upon transfer of control to its customers, which occurs upon shipment. The Company’s product revenue includes the sales of software licenses of HiveManager, a license-based unified networking management system, which consists of the purchase of a perpetual license of the HiveManager software. The Company generally recognizes revenue from its software licenses upon transfer of control to its customers. Subscription and Support Revenue - The Company’s subscription and support revenue consists of revenue from SaaS and PCS arrangements. SaaS arrangements with customers do not provide the right to take possession of the software at any time during the hosting period and have a defined contract term. PCS arrangements include software updates, access to technical support personnel, and expedited replacement of defective hardware products. Each of the promised services is distinct in the context of the contract as the services are not inputs to a combined output for which the Company provides any significant integration service, the provision of each service does not significantly modify or customize the other, and the Company could provide each service independently of the other. Though the Company has identified that each of the performance obligations is distinct, as each of the performance obligations represents a series of distinct services that has the same pattern of transfer (stand ready obligations) and the same measure of progress of transfer (days of service) the Company will account for the all series as a single performance obligation. The Company recognizes revenue from SaaS and PCS arrangements on a straight-line basis over the service contract term, which is typically one, three or five years. The contract term typically commences upon transfer of control of the corresponding products to our customer. See the condensed consolidated statement of operations for the Company's product revenue and subscription and support revenue amounts for the three and six months ended June 30, 2018 and 2017, respectively. Costs to Obtain and Fulfill a Contract The Company capitalizes certain contract acquisition costs consisting primarily of commissions paid and the related payroll taxes when customer contracts are signed. The Company capitalizes commission expenses earned by sales personnel and the related payroll taxes that are incremental to obtaining customer contracts. The Company amortizes deferred sales commission amounts based on the expected future revenue streams under the customer contracts. The Company includes amortization of deferred sales commissions in sales and marketing expense in the accompanying consolidated statements of operations. The Company classifies deferred commissions as current or non-current based on the timing of when the Company expects to recognize the expense. The Company periodically reviews these costs for impairment. The Company records deferred revenue when it invoices the customer, collection is probable, and the associated revenue has not yet been earned. The current portion of deferred revenue represents the amounts the Company expects to be recognized as revenue within one year of the condensed consolidated balance sheet date. See Note 3, Consolidated Balance Sheet Components, for the changes in the deferred revenue and deferred commissions during the three and six months ended June 30, 2018 and 2017, respectively. Contracted-but-not-recognized revenue The Company's contracted but not invoiced performance obligations do not include the option for its customers to cancel. The Company's revenue allocated to remaining performance obligations represents contracted revenue that the Company has not yet recognized (“contracted not recognized”), which includes deferred revenue and non-cancelable amounts that the Company will invoice and recognize as revenue in future periods. Contracted-but-not-recognized revenue was $76.2 million as of June 30, 2018, of which the Company expects to recognize approximately 53% over the next 12 months and the remainder thereafter. Other Recently Adopted Accounting Pronouncements 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. In February 2018, the FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments, to clarify certain aspects of ASU No. 2016-01. We adopted these standards effective January 1, 2018. The Company's adoption of these standards did not have a material impact on the Company's 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 adopted ASU 2016-15 in the first quarter of 2018. The Company's adoption of this standard did not have a material impact on the Company's financial statements. Recent Accounting Pronouncements 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 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, and commercial paper. The Company sells its products primarily to channel partners, which include value-added resellers, or VARs, distributors, managed service providers, or MSPs, and original equipment manufacturers, or OEMs. 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 S19

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Adoption of ASC 606	The following tables present the impacts to reported results from the Company's adoption of the standard on the Company's condensed consolidated balance sheets and condensed consolidated statements of operations. Consolidated Balance Sheet (in thousands) As of December 31, 2017 As Reported Impact of Adoption As Adjusted Prepaid expenses and other current assets $ 6,513 $ (117 ) $ 6,396 Total current assets 122,594 (117 ) 122,477 Other assets 5,124 (224 ) 4,900 Total assets 134,612 (341 ) 134,271 Deferred revenue, current 34,281 (1,002 ) 33,279 Total current liabilities 54,829 (1,002 ) 53,827 Deferred revenue, non-current 36,083 (2,322 ) 33,761 Total liabilities 112,681 (3,324 ) 109,357 Accumulated deficit (250,406 ) 2,983 (247,423 ) Total stockholders' equity 21,931 2,983 24,914 Total liabilities and stockholders' equity $ 134,612 $ (341 ) $ 134,271 Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Product revenue $ 32,046 $ 59 $ 32,105 Subscription and support 10,254 (158 ) 10,096 Total Revenue 42,300 (99 ) 42,201 Cost of revenue - Product 10,616 (146 ) 10,470 Total cost of revenue 13,769 (146 ) 13,623 Gross profit 28,531 47 28,578 Sales and marketing 17,420 (9 ) 17,411 Total operating expenses 32,131 (9 ) 32,122 Operating loss (3,600 ) 56 (3,544 ) Net loss $ (3,873 ) $ 56 $ (3,817 ) Net loss per share, basic and diluted $ (0.07 ) $ — $ (0.07 ) Six Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Product revenue $ 58,916 156 59,072 Subscription and support 19,735 (277 ) 19,458 Total Revenue 78,651 (121 ) 78,530 Cost of revenue - Product 19,352 (67 ) 19,285 Total cost of revenue 25,681 (67 ) 25,614 Gross profit 52,970 (54 ) 52,916 Sales and marketing 34,859 (11 ) 34,848 Total operating expenses 65,417 (11 ) 65,406 Operating loss (12,447 ) (43 ) (12,490 ) Net loss $ (12,892 ) $ (43 ) $ (12,935 ) Net loss per share, basic and diluted $ (0.24 ) $ — $ (0.24 ) Effect on certain items in the Statement of Cash Flows (operating activities, in thousands) Six Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Cash flows from operating activities: Net loss: $ (12,892 ) $ (43 ) $ (12,935 ) Adjustments to reconcile net loss to net cash provided by operating activities: Prepaid expenses and other current assets (839 ) (128 ) (967 ) Other assets (275 ) 50 (225 ) Deferred revenue 2,007 121 2,128 Revenues by geographic location, based on the billing address of the respective channel partner’s bill-to location, which reflect the adoption of ASC 606, are as follows: (in thousands) Three Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Americas $ 29,141 $ 240 $ 29,381 Europe, Middle East and Africa 10,397 295 10,692 Asia Pacific 2,762 (634 ) 2,128 Total revenues $ 42,300 $ (99 ) $ 42,201 Six Months Ended June 30, 2017 As Reported Impact of Adoption As Adjusted Americas $ 53,059 $ 218 $ 53,277 Europe, Middle East and Africa 20,230 295 20,525 Asia Pacific 5,362 (634 ) 4,728 Total revenues $ 78,651 $ (121 ) $ 78,530
Percentage of Revenue from Individual Customers	The percentages of revenue from a consolidated group of entities (Distributor A and Distributor B) greater than 10% of total consolidated revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) Distributor A 14.8 % 13.9 % 16.0 % 14.5 % Distributor B 39.7 % 18.1 % 37.5 % 18.7 % The percentages of receivables from Distributor A and Distributor B greater than 10% of total consolidated accounts receivable were as follows: June 30, December 31, 2018 2017 Distributor A 21.4 % 27.9 % Distributor B 22.4 % 29.4 %

FAIR VALUE DISCLOSURE (Tables)

FAIR VALUE DISCLOSURE (Tables)	6 Months Ended
	Jun. 30, 2018
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: June 30, 2018 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 11,088 — 11,088 11,088 — $ 11,088 $ — $ 11,088 $ 11,088 $ — Level 2: U.S. treasuries 9,438 (12 ) 9,426 — 9,426 Corporate securities 15,890 (32 ) 15,858 — 15,858 Commercial paper 29,355 — 29,355 1,995 27,360 $ 54,683 $ (44 ) $ 54,639 $ 1,995 $ 52,644 Total $ 65,771 $ (44 ) $ 65,727 $ 13,083 $ 52,644 December 31, 2017 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 7,538 — 7,538 7,538 — $ 7,538 $ — $ 7,538 $ 7,538 $ — Level 2: U.S. treasuries 9,480 (3 ) 9,477 — 9,477 Corporate securities 15,293 (27 ) 15,266 — 15,266 Commercial paper 32,932 — 32,932 — 32,932 $ 57,705 $ (30 ) $ 57,675 $ — $ 57,675 Total $ 65,243 $ (30 ) $ 65,213 $ 7,538 $ 57,675

CONSOLIDATED BALANCE SHEET CO21

CONSOLIDATED BALANCE SHEET COMPONENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following: June 30, December 31, 2018 2017 (As Adjusted) (in thousands) Deferred sales commissions, current portion $ 3,279 $ 3,072 Prepaid expenses 2,808 2,543 Other 602 781 Total prepaid expenses and other current assets $ 6,689 $ 6,396
Schedule of Property and Equipment	Property and equipment, net consists of the following: June 30, December 31, Estimated Useful Lives 2018 2017 (in thousands) Computer and other equipment 3 years $ 1,731 $ 1,713 Manufacturing, research and development laboratory equipment 3 years 5,503 4,630 Software 2 to 5 years 9,230 8,182 Office furniture and equipment 3 to 7 years 2,061 2,061 Leasehold improvements shorter of useful life or lease term 1,035 1,017 Property and equipment, gross 19,560 17,603 Less: Accumulated depreciation and amortization (12,679 ) (11,222 ) Property and equipment, net $ 6,881 $ 6,381
Schedule of Other Assets	Other assets consist of the following: June 30, December 31, 2018 2017 (As Adjusted) (in thousands) Deferred sales commissions, non-current portion $ 3,196 $ 2,947 Investment in privately held company 1,500 1,500 Other 574 453 Total other assets $ 5,270 $ 4,900
Schedule of Deferred Commission Expense	Significant changes in the balance of total deferred commission (contract asset) during the three and six months ended June 30, 2018 and 2017 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) (in thousands) (in thousands) Beginning balance $ 6,085 $ 5,958 $ 6,019 $ 5,766 Recognized (3,749 ) (4,069 ) (6,767 ) (7,293 ) Additions 4,139 4,460 7,223 7,876 Total Deferred Commission $ 6,475 $ 6,349 $ 6,475 $ 6,349 Current portion $ 3,279 $ 3,173 $ 3,279 $ 3,173 Non-current portion $ 3,196 $ 3,176 $ 3,196 $ 3,176
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: June 30, December 31, 2018 2017 (in thousands) Accrued compensation $ 7,806 $ 6,971 Accrued expenses and other liabilities 1,060 1,385 Warranty liability, current portion 214 246 Total accrued liabilities $ 9,080 $ 8,602
Summary of Deferred Revenue	Significant changes in the balance of total deferred revenue (contract liability) during the three and six months ended June 30, 2018 and 2017 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) (in thousands) (in thousands) Beginning balance $ 67,878 $ 62,264 $ 67,040 $ 63,239 Recognized (11,207 ) (10,096 ) (21,908 ) (19,458 ) Additions 14,636 13,201 26,175 21,588 Total Deferred Revenue $ 71,307 $ 65,369 $ 71,307 $ 65,369 Current portion $ 35,393 $ 32,053 $ 35,393 $ 32,053 Non-current portion $ 35,914 $ 33,316 $ 35,914 $ 33,316
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Beginning balance $ 546 $ 857 $ 577 $ 975 Charges to operations 148 230 274 351 Obligations fulfilled (154 ) (142 ) (307 ) (339 ) Changes in existing warranty — (15 ) (4 ) (57 ) Total product warranties $ 540 $ 930 $ 540 $ 930 Current portion $ 214 $ 575 $ 214 $ 575 Non-current portion $ 326 $ 355 $ 326 $ 355

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 are as follows: Amount Year Ending December 31, (in thousands) 2018 (remaining six months) $ 922 2019 1,592 2020 1,103 2021 1,090 2022 999 Thereafter 445 Total $ 6,151
Schedule of Future Minimum Lease Payments for Capital Leases	Future minimum lease payments by year under capital lease obligations as of June 30, 2018 are as follows: Amount Year Ending December 31, (in thousands) 2018 (remaining six months) $ 91 2019 178 2020 172 2021 170 2022 162 Thereafter 83 Total $ 856

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Schedule of shares reserved for future issuance	As of June 30, 2018 , the Company had the following reserved shares of common stock for future issuance: June 30, 2018 Common stock reserved for future grant under the 2014 Equity Incentive Plan 8,737,969 Common stock reserved for future purchase under the 2014 Employee Stock Purchase Plan 1,680,335 Options and Restricted Stock Units issued and outstanding 9,401,668 Total reserved shares of common stock for future issuance 19,819,972

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
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 June 30, 2018 : Shares Available for Grant Balance, December 31, 2017 7,997,691 Authorized 2,708,575 Options granted — Options canceled 184,336 Awards granted (3,018,557 ) Awards canceled 865,924 Balance, June 30, 2018 8,737,969
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, 2017 4,247,911 $ 6.03 5.80 $ 4,472 Options granted — — Options exercised (13,525 ) 1.54 Options canceled (184,336 ) 6.27 Balance, June 30, 2018 4,050,050 $ 6.03 5.20 $ 2,506 Options exercisable, June 30, 2018 3,635,238 $ 5.97 4.96 $ 2,506
Summary of RSU activity and related information	The following is a summary of the Company’s RSU grant activity and related information for the three months ended June 30, 2018 : Restricted Stock Units Outstanding Shares Weighted-Average Fair Value Per Share Balance, December 31, 2017 4,089,067 $ 6.47 Awards granted 3,018,557 4.14 Awards vested (1,287,284 ) 5.28 Awards canceled (468,722 ) 5.34 Balance, June 30, 2018 5,351,618 $ 4.72
Weighted average assumptions used to value MBRSUs	The Company used the following weighted-average assumptions to value MBRSUs under the Monte Carlo model: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 MBRSUs: Expected volatility 44 % 46 % 44 % 46 % Risk free interest rate 2.61 % 1.45 % 2.61 % 1.45 %
Weighted average assumptions used to value employee stock purchase rights	The Company used the following weighted-average assumptions to value employee stock purchase rights under the Black-Scholes model: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 ESPP purchase rights: Expected term (in years) 0.50 - 1.00 0.50 - 1.00 0.50 - 1.00 0.50 - 1.00 Expected volatility 46% - 52% 34% - 39% 46% - 52% 34% - 39% Risk free interest rate 1.45% - 2.10% 0.60% - 1.07% 1.45% - 2.10% 0.60% - 1.07%
Schedule of stock-based awards granted in the consolidated statements of operations	The Company recognized total stock-based compensation for stock-based awards in the condensed consolidated statements of operations as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Cost of revenue $ 256 $ 276 $ 502 $ 547 Research and development 968 1,065 2,014 1,753 Sales and marketing 1,110 1,501 2,107 2,795 General and administrative 1,250 1,602 2,632 2,902 Total stock-based compensation $ 3,584 $ 4,444 $ 7,255 $ 7,997 The following table presents stock-based compensation expense by award-type: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Stock Options $ 480 $ 820 $ 1,021 $ 1,703 Restricted Stock Units 2,573 3,193 5,365 5,463 Employee Stock Purchase Plan 531 431 869 831 Total stock-based compensation $ 3,584 $ 4,444 $ 7,255 $ 7,997

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Calculation of Basic and Diluted Net Income (Loss) per Share	The following table presents the Company's computation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) (in thousands, except for share and per share data) Numerator: Net loss $ (2,832 ) $ (3,817 ) $ (10,149 ) $ (12,935 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 54,828,749 53,175,684 54,582,129 52,808,412 Net loss per share: Basic and diluted $ (0.05 ) $ (0.07 ) $ (0.19 ) $ (0.24 )
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 its computation of diluted net loss per share for the periods presented because including them would have been antidilutive: As of June 30, 2018 2017 Shares of common stock issuable under the Equity Incentive Plan 9,401,668 10,396,671 Employee Stock Purchase Plan 106,558 96,199 Total 9,508,226 10,492,870

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2018
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) (in thousands) Americas $ 23,401 $ 29,381 $ 44,231 $ 53,277 Europe, Middle East and Africa 12,667 10,692 24,567 20,525 Asia Pacific 4,407 2,128 7,444 4,728 Total revenues $ 40,475 $ 42,201 $ 76,242 $ 78,530
Schedule of property and equipment, net, by location	Property and equipment, net by location is summarized as follows: June 30, December 31, 2018 2017 (in thousands) United States $ 5,257 $ 5,323 People's Republic of China 1,445 875 United Kingdom 179 183 Total property and equipment, net $ 6,881 $ 6,381

DESCRIPTION OF BUSINESS AND S27

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended			12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017		Jun. 30, 2018	Jun. 30, 2017		Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Product revenue	$ 29,268	$ 32,105	[1]	$ 54,334	$ 59,072	[1]	$ 113,100	$ 134,600
Subscription and support	11,207	10,096	[1]	21,908	19,458	[1]	40,400	33,300
Deferred revenue	71,307	65,369		71,307	65,369		67,040	63,239	$ 67,878	$ 62,264
Decrease in capitalized contract cost	6,475	6,349		6,475	6,349		6,019	$ 5,766	$ 6,085	$ 5,958
Contracted-but-not-recognized revenue	$ 76,200			$ 76,200
Contracted-but-not-recognized revenue expected to be recognized over next 12 months	53.00%			53.00%
Restatement Adjustment | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Product revenue		59			156
Subscription and support		$ (158)			$ (277)
Deferred revenue							(3,300)
Decrease in capitalized contract cost							$ (300)
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1).

DESCRIPTION OF BUSINESS AND S28

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017		Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Prepaid expenses and other current assets	$ 6,689	$ 6,396	[1]
Total current assets	122,727	122,477	[1]
Other assets	5,270	4,900	[1]
Total assets	135,391	134,271	[1]
Deferred revenue, current	35,393	33,279	[1]	$ 32,053
Total current liabilities	76,868	53,827	[1]
Deferred revenue, non-current	35,914	33,761	[1]	$ 33,316
Total liabilities	114,469	109,357	[1]
Accumulated deficit	(257,572)	(247,423)	[1]
Total stockholders’ equity	20,922	24,914	[1]
Total liabilities and stockholders’ equity	$ 135,391	134,271	[1]
As Reported
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Prepaid expenses and other current assets		6,513
Total current assets		122,594
Other assets		5,124
Total assets		134,612
Deferred revenue, current		34,281
Total current liabilities		54,829
Deferred revenue, non-current		36,083
Total liabilities		112,681
Accumulated deficit		(250,406)
Total stockholders’ equity		21,931
Total liabilities and stockholders’ equity		134,612
Restatement Adjustment | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Prepaid expenses and other current assets		(117)
Total current assets		(117)
Other assets		(224)
Total assets		(341)
Deferred revenue, current		(1,002)
Total current liabilities		(1,002)
Deferred revenue, non-current		(2,322)
Total liabilities		(3,324)
Accumulated deficit		2,983
Total stockholders’ equity		2,983
Total liabilities and stockholders’ equity		$ (341)
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1)

DESCRIPTION OF BUSINESS AND S29

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended			12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017		Jun. 30, 2018	Jun. 30, 2017		Dec. 31, 2017	Dec. 31, 2016
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Product revenue	$ 29,268	$ 32,105	[1]	$ 54,334	$ 59,072	[1]	$ 113,100	$ 134,600
Subscription and support	11,207	10,096	[1]	21,908	19,458	[1]	$ 40,400	$ 33,300
Total revenue	40,475	42,201	[1]	76,242	78,530	[1]
Cost of revenue - Product	10,379	10,470	[1]	19,050	19,285	[1]
Total cost of revenue	13,762	13,623	[1]	25,837	25,614	[1]
Gross profit	26,713	28,578	[1]	50,405	52,916	[1]
Sales and Marketing Expense	15,731	17,411	[1]	31,401	34,848	[1]
Total operating expenses	29,584	32,122	[1]	60,487	65,406	[1]
Operating loss	(2,871)	(3,544)	[1]	(10,082)	(12,490)	[1]
Net loss	$ (2,832)	$ (3,817)	[1],[2]	$ (10,149)	$ (12,935)	[1],[2],[3]
Net loss per share, basic and diluted (USD per share)	$ (0.05)	$ (0.07)	[1]	$ (0.19)	$ (0.24)	[1]
As Reported
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Product revenue		$ 32,046			$ 58,916
Subscription and support		10,254			19,735
Total revenue		42,300			78,651
Cost of revenue - Product		10,616			19,352
Total cost of revenue		13,769			25,681
Gross profit		28,531			52,970
Sales and Marketing Expense		17,420			34,859
Total operating expenses		32,131			65,417
Operating loss		(3,600)			(12,447)
Net loss		$ (3,873)			$ (12,892)
Net loss per share, basic and diluted (USD per share)		$ (0.07)			$ (0.24)
Restatement Adjustment | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Product revenue		$ 59			$ 156
Subscription and support		(158)			(277)
Total revenue		(99)			(121)
Cost of revenue - Product		(146)			(67)
Total cost of revenue		(146)			(67)
Gross profit		47			(54)
Sales and Marketing Expense		(9)			(11)
Total operating expenses		(9)			(11)
Operating loss		56			(43)
Net loss		$ 56			$ (43)
Net loss per share, basic and diluted (USD per share)		$ 0			$ 0
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1).
[2]	The Company has adjusted certain amounts have been adjusted for the retrospective change in accounting policy for revenue recognition (See Note 1).
[3]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition. (See Note 1).

DESCRIPTION OF BUSINESS AND S30

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017		Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net loss	$ (2,832)	$ (3,817)	[1],[2]	$ (10,149)	$ (12,935)	[1],[2],[3]
Prepaid expenses and other current assets				(293)	(967)	[3]
Other assets				(370)	(225)	[3]
Deferred revenue				$ 4,267	2,128	[3]
As Reported
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net loss		(3,873)			(12,892)
Prepaid expenses and other current assets					(839)
Other assets					(275)
Deferred revenue					2,007
Restatement Adjustment | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net loss		$ 56			(43)
Prepaid expenses and other current assets					(128)
Other assets					50
Deferred revenue					$ 121
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1).
[2]	The Company has adjusted certain amounts have been adjusted for the retrospective change in accounting policy for revenue recognition (See Note 1).
[3]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition. (See Note 1).

DESCRIPTION OF BUSINESS AND S31

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenues by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017		Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 40,475	$ 42,201	[1]	$ 76,242	$ 78,530	[1]
Americas
Disaggregation of Revenue [Line Items]
Total revenues	23,401	29,381		44,231	53,277
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenues	12,667	10,692		24,567	20,525
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenues	$ 4,407	2,128		$ 7,444	4,728
As Reported
Disaggregation of Revenue [Line Items]
Total revenues		42,300			78,651
As Reported | Americas
Disaggregation of Revenue [Line Items]
Total revenues		29,141			53,059
As Reported | Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenues		10,397			20,230
As Reported | Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenues		2,762			5,362
Accounting Standards Update 2014-09 | Restatement Adjustment
Disaggregation of Revenue [Line Items]
Total revenues		(99)			(121)
Accounting Standards Update 2014-09 | Restatement Adjustment | Americas
Disaggregation of Revenue [Line Items]
Total revenues		240			218
Accounting Standards Update 2014-09 | Restatement Adjustment | Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenues		295			295
Accounting Standards Update 2014-09 | Restatement Adjustment | Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenues		$ (634)			$ (634)
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1).

DESCRIPTION OF BUSINESS AND S32

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk and Significant Customers (Details) - Customer Concentration Risk	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2016
VAD A | Sales
Revenue, Major Customer [Line Items]
Significant customer, as a percentage	14.80%	13.90%	16.00%	14.50%
VAD A | Accounts Receivable
Revenue, Major Customer [Line Items]
Significant customer, as a percentage			21.40%		27.90%
VAD B | Sales
Revenue, Major Customer [Line Items]
Significant customer, as a percentage	39.70%	18.10%	37.50%	18.70%
VAD B | Accounts Receivable
Revenue, Major Customer [Line Items]
Significant customer, as a percentage			22.40%		29.40%

FAIR VALUE DISCLOSURE (Details)

FAIR VALUE DISCLOSURE (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 13,083	$ 7,538
Total cash equivalents and short-term investments, Amortized Cost	65,771	65,243
Total cash equivalents and short-term investments, Gross Unrealized Gain (Loss)	(44)	(30)
Total cash equivalents and short-term investments, Fair Value	65,727	65,213
Short-term Investments	52,644	57,675
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, Amortized Cost	11,088	7,538
Cash equivalents	11,088	7,538
Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, Amortized Cost	11,088	7,538
Cash equivalents	11,088	7,538
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,995	0
Short-term investments	54,639	57,675
Securities, Amortized cost	54,683	57,705
Securities, Gross Unrealized Gain (Loss)	(44)	(30)
Short-term Investments	52,644	57,675
Level 2 | U.S. treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Level 2 | Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,995
Level 2 | U.S. treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	9,426	9,477
Securities, Amortized cost	9,438	9,480
Securities, Gross Unrealized Gain (Loss)	(12)	(3)
Short-term Investments	9,426	9,477
Level 2 | Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	15,858	15,266
Securities, Amortized cost	15,890	15,293
Securities, Gross Unrealized Gain (Loss)	(32)	(27)
Short-term Investments	15,858	15,266
Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	29,355	32,932
Securities, Amortized cost	29,355	32,932
Securities, Gross Unrealized Gain (Loss)	0	0
Short-term Investments	$ 27,360	$ 32,932

CONSOLIDATED BALANCE SHEET CO34

CONSOLIDATED BALANCE SHEET COMPONENTS - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Prepaid expenses and other current assets [Abstract]
Deferred Sales Commission	$ 3,279	$ 3,072
Prepaid expenses	2,808	2,543
Other	602	781
Prepaid expenses and other current assets	$ 6,689	$ 6,396	[1]
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1)

CONSOLIDATED BALANCE SHEET CO35

CONSOLIDATED BALANCE SHEET COMPONENTS - Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Property and Equipment [Line Items]
Property and equipment, gross	$ 19,560		$ 19,560		$ 17,603
Less: Accumulated depreciation and amortization	(12,679)		(12,679)		(11,222)
Property and equipment, net	6,881		6,881		6,381
Depreciation and amortization expense	800	$ 800	1,500	$ 1,600
Assets under capital lease	1,200		1,200		1,200
Related accumulated depreciation	500		500		400
Computer and other equipment
Property and Equipment [Line Items]
Property and equipment, gross	1,731		$ 1,731		1,713
Estimated useful lives			3 years
Manufacturing, research and development laboratory equipment
Property and Equipment [Line Items]
Property and equipment, gross	5,503		$ 5,503		4,630
Estimated useful lives			3 years
Software
Property and Equipment [Line Items]
Property and equipment, gross	9,230		$ 9,230		8,182
Estimated useful lives			5 years
Software | Minimum
Property and Equipment [Line Items]
Estimated useful lives			2 years
Software | Maximum
Property and Equipment [Line Items]
Estimated useful lives			5 years
Office furniture and equipment
Property and Equipment [Line Items]
Property and equipment, gross	2,061		$ 2,061		2,061
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	$ 1,035		$ 1,035		$ 1,017

CONSOLIDATED BALANCE SHEET CO36

CONSOLIDATED BALANCE SHEET COMPONENTS Other assets (Details) - USD ($) $ in Thousands	1 Months Ended
	Jan. 31, 2016	Jun. 30, 2018	Dec. 31, 2017
Investment [Line Items]
Deferred sales commissions, non-current portion		$ 3,196	$ 2,947
Investment in privately held company		1,500	1,500
Other		574	453
Total other assets		$ 5,270	$ 4,900	[1]
Convertible Note [Member]
Investment [Line Items]
Convertible note	$ 1,500
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1)

CONSOLIDATED BALANCE SHEET CO37

CONSOLIDATED BALANCE SHEET COMPONENTS - Deferred Commission Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 6,085	$ 5,958	$ 6,019	$ 5,766
Recognized	(3,749)	(4,069)	(6,767)	(7,293)
Additions	4,139	4,460	7,223	7,876
Total Deferred Commission	6,475	6,349	6,475	6,349
Current portion	3,279	3,173	3,279	3,173
Non-current portion	$ 3,196	$ 3,176	$ 3,196	$ 3,176
Deferred commission expense expected to be recognized over next twelve months (percent)	51.00%		51.00%

CONSOLIDATED BALANCE SHEET CO38

CONSOLIDATED BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Accrued Liabilities, Current [Abstract]
Accrued compensation	$ 7,806	$ 6,971
Accrued expenses and other liabilities	1,060	1,385
Warranty liability, current portion	214	246	$ 575
Total accrued liabilities	$ 9,080	$ 8,602

CONSOLIDATED BALANCE SHEET CO39

CONSOLIDATED BALANCE SHEET COMPONENTS - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	[1]
Movement in Deferred Revenue [Roll Forward]
Beginning balance	$ 67,878	$ 62,264	$ 67,040	$ 63,239
Recognized	(11,207)	(10,096)	(21,908)	(19,458)
Additions	14,636	13,201	26,175	21,588
Total Deferred Revenue	71,307	65,369	71,307	65,369
Current portion	35,393	32,053	35,393	32,053	$ 33,279
Non-current portion	$ 35,914	$ 33,316	$ 35,914	$ 33,316	$ 33,761
Deferred revenue expected to be recognized over next 12 months (percent)	50.00%		50.00%
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1)

CONSOLIDATED BALANCE SHEET CO40

CONSOLIDATED BALANCE SHEET COMPONENTS - Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning balance	$ 546	$ 857	$ 577	$ 975
Charges to operations	148	230	274	351
Obligations fulfilled	(154)	(142)	(307)	(339)
Changes in existing warranty	0	(15)	(4)	(57)
Total product warranties	540	930	540	930
Current portion	214	575	214	575	$ 246
Non-current portion	$ 326	$ 355	$ 326	$ 355

DEBT (Details)

DEBT (Details)	1 Months Ended		3 Months Ended		6 Months Ended
	Mar. 31, 2017	Jan. 31, 2016	Jun. 30, 2018USD ($)	Jun. 30, 2017	Jun. 30, 2018USD ($)	Jun. 30, 2017	Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Line of Credit Facility, Expiration Period	2 years
Debt, non-current			$ 0		$ 0		$ 20,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Required liquidity ratio					1.25
Requitred minimum cash balance as of the last day of each month					$ 35,000,000
Potential increase in interest rate					5.00%
Maximum borrowing capacity			20,000,000		$ 20,000,000
Debt, non-current			$ 20,000,000		$ 20,000,000
Revolving Credit Facility | Weighted Average
Debt Instrument [Line Items]
Interest rate during the period			3.68%	2.90%	3.48%	2.74%
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	Jun. 30, 2018USD ($)
Operating Leases, Future Minimum Payments [Abstract]
2018 (remaining six months)	$ 922
2,019	1,592
2,020	1,103
2,021	1,090
2,022	999
Thereafter	445
Total future minimum lease payments	$ 6,151

COMMITMENTS AND CONTINGENCIES C

COMMITMENTS AND CONTINGENCIES Capital Lease Obligations (Details) $ in Thousands	Jun. 30, 2018USD ($)
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2018 (remaining six months)	$ 91
2,019	178
2,020	172
2,021	170
2,022	162
Thereafter	83
Total	$ 856

COMMITMENTS AND CONTINGENCIES44

COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2018lawsuitofficer	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Rent expense		$ 0.5	$ 0.5	$ 1	$ 1
Number of class action lawsuits filed | lawsuit	3
Inventories
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Amount of manufacturing commitment				$ 5.6	$ 6
Shareholder Class Action
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Number of Company officers named in lawsuits | officer	2

STOCKHOLDERS' EQUITY - Common S

STOCKHOLDERS' EQUITY - Common Stock Reserved for Future Issuance (Details) - shares	Jun. 30, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Total reserved shares of common stock for future issuance	19,819,972
Employee Stock Options and Restricted Stock Units
Class of Stock [Line Items]
Options and Restricted Stock Units issued and outstanding	9,401,668
2014 Equity Incentive Plan
Class of Stock [Line Items]
Shares reserved for issuance under share-based compensation plan	8,737,969	7,997,691
Employee Stock Purchase Plan
Class of Stock [Line Items]
Shares reserved for issuance under share-based compensation plan	1,680,335

STOCKHOLDERS' EQUITY - Stock Re

STOCKHOLDERS' EQUITY - Stock Repurchase Program (Details) - USD ($)	Aug. 01, 2018	Jul. 31, 2018	Nov. 30, 2017	Aug. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Feb. 29, 2016
Class of Stock [Line Items]
Amount authorized under stock repurchase program										$ 10,000,000
Stock repurchase program expiration date				Jun. 30, 2018
Additional amount authorized for repurchase			20,000,000
Number of shares repurchased in period					248,961	208,779	248,961	208,779	1,610,204
Value of shares repurchased in period					$ 1,000,000	$ 1,000,000			$ 7,200,000
Average cost of repurchased shares (in usd per share)					$ 4.11	$ 4.88			$ 4.50
Remaining amount available for repurchases under the program					$ 12,800,000		$ 12,800,000		$ 12,800,000
Subsequent Event
Class of Stock [Line Items]
Amount authorized under stock repurchase program	$ 20,000,000
Stock repurchase program expiration date	Jun. 30, 2020	Jun. 30, 2020

STOCK-BASED COMPENSATION - Equi

STOCK-BASED COMPENSATION - Equity Incentive Plan (Details) - 2014 Equity Incentive Plan - shares	1 Months Ended	6 Months Ended
	Jan. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase to shares of common stock reserved for issuance	2,708,575	2,708,575
Shares reserved for issuance under share-based compensation plan		8,737,969	7,997,691

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Shares Available for Grant
Options granted (shares)				0
Options canceled (shares)				184,336
Number of Shares
Beginning balance (shares)	4,247,911			4,247,911
Options granted (shares)				0
Options exercised (shares)				(13,525)
Options forfeited (shares)				(184,336)
Ending balance (shares)		4,050,050		4,050,050		4,247,911
Options Exercisable (shares)		3,635,238		3,635,238
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 6.03			$ 6.03
Options granted (in dollars per share)				0
Options exercised (in dollars per share)				1.54
Options forfeited (in dollars per share)				6.27
Ending balance (in dollars per share)		$ 6.03		6.03		$ 6.03
Options exercisable (in dollars per share)		$ 5.97		$ 5.97
Weighted Average Remaining Contractual Life
Weighted average remaining contractual life, period start				5 years 2 months 12 days		5 years 9 months 18 days
Weighted average remaining contractual life, period end				5 years 2 months 12 days		5 years 9 months 18 days
Weighted average life, options exercisable				4 years 11 months 16 days
Aggregate Intrinsic Value
Aggregate intrinsic value, period start	$ 4,472			$ 4,472
Aggregate intrinsic value, period end		$ 2,506		2,506		$ 4,472
Aggregate intrinsic value, options exercisable		2,506		2,506
Total intrinsic value of options exercised		0	$ 800	0	$ 1,200
Total grant-date fair value of options		$ 400	$ 900	$ 1,000	$ 1,900
2014 Equity Incentive Plan
Shares Available for Grant
Beginning balance (shares)	7,997,691			7,997,691
Authorized (shares)	2,708,575			2,708,575
Options granted (shares)				0
Options canceled (shares)				184,336
Awards granted (shares)				(3,018,557)
Awards canceled (shares)				865,924
Ending balance (shares)		8,737,969		8,737,969		7,997,691
Number of Shares
Options granted (shares)				0
Options forfeited (shares)				(184,336)

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Units (Details) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares	Jun. 30, 2017USD ($)$ / sharesshares	Mar. 31, 2017shares	Jun. 30, 2018USD ($)$ / sharesshares	Jun. 30, 2017USD ($)$ / sharesshares
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
Payment for shares withheld for tax withholdings on vesting of restricted stock units | $				$ (1,673)	$ (451)
2014 Equity Incentive Plan
Restricted Stock Units, Number of Shares [Roll Forward]
Awards granted				3,018,557
Awards canceled				(865,924)
Restricted Stock Units (RSUs)
Restricted Stock Units, Number of Shares [Roll Forward]
Beginning balance				4,089,067
Awards granted				3,018,557
Awards vested				(1,287,284)
Awards canceled				(468,722)
Ending balance	5,351,618			5,351,618
Restricted Stock Units (RSUs) | 2014 Equity Incentive Plan
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
Beginning balance (in dollars per share) | $ / shares				$ 6.47
Awards granted (in dollars per share) | $ / shares	$ 4.12	$ 4.96		4.14	$ 4.97
Awards vested (in dollars per share) | $ / shares				5.28
Awards canceled (in dollars per share) | $ / shares				5.34
Ending balance (in dollars per share) | $ / shares	$ 4.72			$ 4.72
Aggregate grant date fair value | $	$ 11,200	$ 11,800		$ 12,500	$ 15,900
Fair value of shares vested | $	$ 2,600	$ 2,400		$ 6,800	$ 4,600
Shares repurchased for tax withholdings on vesting of RSUs	141,173	25,209		397,202	95,577
Payment for shares withheld for tax withholdings on vesting of restricted stock units | $	$ (600)	$ (100)		$ (1,700)	$ (500)
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 | 2014 Equity Incentive Plan
Restricted Stock Units, Number of Shares [Roll Forward]
Awards granted	0			0
PBRSUs | 2014 Equity Incentive Plan | Common Stock
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
PBRSU to common stock, conversion ratio	1			1
Performance-Based Restricted Stock Unit
Restricted Stock Units, Number of Shares [Roll Forward]
Awards granted			378,644
Awards vested				(251,037)
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
Shares expected to vest, remainder of year (shares)	0			0
Market-Based Restricted Stock Unit
Restricted Stock Units, Number of Shares [Roll Forward]
Awards vested	(36,625)			(73,250)
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
Shares expected to vest, remainder of year (shares)	73,250			73,250
Market-Based Restricted Stock Unit | 2014 Equity Incentive Plan
Restricted Stock Units, Number of Shares [Roll Forward]
Awards granted	351,500	358,000
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
Awards granted (in dollars per share) | $ / shares	$ 3.05	$ 4.18
Market-Based Restricted Stock Unit | 2014 Equity Incentive Plan | Common Stock
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
Market-Based Restricted Stock Unit, Conversion Ratio	1			1

STOCK-BASED COMPENSATION - Empl

STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum		46.00%	34.00%	46.00%	34.00%
Expected volatility, maximum		52.00%	39.00%	52.00%	39.00%
Risk free interest rate, minimum		1.45%	0.60%	1.45%	0.60%
Risk free interest rate, maximum		2.10%	1.07%	2.10%	1.07%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance under share-based compensation plan		1,680,335		1,680,335
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	541,715
Shares reserved for issuance under share-based compensation plan		1,680,335		1,680,335
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 in period				493,914	563,174
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	1 year	1 year	1 year

STOCK-BASED COMPENSATION - Valu

STOCK-BASED COMPENSATION - Valuation Assumptions (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Market-Based Restricted Stock Unit
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	44.00%	46.00%	44.00%	46.00%
Risk free interest rate	2.61%	1.45%	2.61%	1.45%
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum	46.00%	34.00%	46.00%	34.00%
Expected volatility, maximum	52.00%	39.00%	52.00%	39.00%
Risk free interest rate, minimum	1.45%	0.60%	1.45%	0.60%
Risk free interest rate, maximum	2.10%	1.07%	2.10%	1.07%
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	1 year	1 year	1 year

STOCK-BASED COMPENSATION - St52

STOCK-BASED COMPENSATION - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 3,584	$ 4,444	$ 7,255	$ 7,997
Employee Stock Option
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	480	820	1,021	1,703
Unrecognized stock-based compensation expense	1,300		$ 1,300
Period of recognition of unrecognized stock-based compensation expense			11 months 23 days
Restricted Stock Units (RSUs)
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	2,573	3,193	$ 5,365	5,463
Unrecognized stock-based compensation expense	21,500		$ 21,500
Period of recognition of unrecognized stock-based compensation expense			2 years 1 month 24 days
ESPP
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	531	431	$ 869	831
Unrecognized stock-based compensation expense	700		$ 700
Period of recognition of unrecognized stock-based compensation expense			5 months 1 day
Performance-Based Restricted Stock Unit
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation		300	$ 200	500
Market-Based Restricted Stock Unit
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	200	300	400	300
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	256	276	502	547
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	968	1,065	2,014	1,753
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,110	1,501	2,107	2,795
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,250	$ 1,602	$ 2,632	$ 2,902

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			6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017		Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net loss	$ (2,832)	$ (3,817)	[1],[2]	$ (10,149)	$ (12,935)	[1],[2],[3]
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted	54,828,749	53,175,684		54,582,129	52,808,412
Basic (in dollars per share)	$ (0.05)	$ (0.07)		$ (0.19)	$ (0.24)
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1).
[2]	The Company has adjusted certain amounts have been adjusted for the retrospective change in accounting policy for revenue recognition (See Note 1).
[3]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition. (See Note 1).

NET LOSS PER SHARE - Antidiluti

NET LOSS PER SHARE - Antidilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the diluted per share calculation	9,508,226	10,492,870
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	9,401,668	10,396,671
Employee Stock Purchase Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the diluted per share calculation	106,558	96,199

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income tax provision	$ (84)	$ (197)	$ (142)	$ (294)

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)		Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)
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	$ 40,475	$ 42,201	[1]	$ 76,242	$ 78,530	[1]
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net revenues	23,401	29,381		44,231	53,277
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net revenues	12,667	10,692		24,567	20,525
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net revenues	4,407	2,128		$ 7,444	$ 4,728
Geographic Concentration Risk | United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues from sales	$ 21,900	$ 27,400
[1]	The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition (See Note 1).

SEGMENT INFORMATION - Property,

SEGMENT INFORMATION - Property, Plant, and Equipment by Geographic Region (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Property and equipment, net	$ 6,881	$ 6,381
United States
Segment Reporting Information [Line Items]
Property and equipment, net	5,257	5,323
People's Republic of China
Segment Reporting Information [Line Items]
Property and equipment, net	1,445	875
United Kingdom
Segment Reporting Information [Line Items]
Property and equipment, net	$ 179	$ 183

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	Aug. 01, 2018	Jul. 31, 2018	Aug. 31, 2017	Feb. 29, 2016
Subsequent Event [Line Items]
Stock repurchase program expiration date			Jun. 30, 2018
Amount authorized under stock repurchase program				$ 10,000,000
Subsequent Event
Subsequent Event [Line Items]
Stock repurchase program expiration date	Jun. 30, 2020	Jun. 30, 2020
Amount authorized under stock repurchase program	$ 20,000,000