Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Entity [Abstract] | ||
Entity Registrant Name | Aerohive Networks, Inc. | |
Entity Central Index Key | 0001372414 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,337,156 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 20,380 | $ 26,049 |
Short-term investments | 61,218 | 66,052 |
Accounts receivable, net | 18,804 | 16,185 |
Inventories | 15,318 | 16,117 |
Prepaid expenses and other current assets | 6,428 | 6,399 |
Total current assets | 122,148 | 130,802 |
Property and equipment, net | 5,328 | 5,947 |
Operating lease right-of-use assets | 3,956 | |
Goodwill | 513 | 513 |
Other assets | 4,287 | 4,255 |
Total assets | 136,232 | 141,517 |
CURRENT LIABILITIES: | ||
Accounts payable | 12,240 | 16,129 |
Accrued liabilities | 7,390 | 8,937 |
Operating lease liabilities, current | 927 | |
Debt, current | 0 | 20,000 |
Deferred revenue, current | 39,681 | 38,786 |
Total current liabilities | 60,238 | 83,852 |
Debt, non-current | 20,000 | 0 |
Deferred revenue, non-current | 39,327 | 38,475 |
Operating lease liabilities, non-current | 3,086 | |
Other liabilities | 1,234 | 1,582 |
Total liabilities | 123,885 | 123,909 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Preferred stock, par value of $0.001 per share - 25,000,000 shares authorized as of March 31, 2019 and December 31, 2018; no shares issued and outstanding as of March 31, 2019 and December 31, 2018 | 0 | 0 |
Common stock, par value of $0.001 per share - 500,000,000 shares authorized as of March 31, 2019 and December 31, 2018; 56,336,156 and 55,867,619 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 56 | 56 |
Additional paid–in capital | 297,273 | 293,910 |
Treasury stock - 2,469,978 shares as of March 31, 2019 and December 31, 2018, respectively | (10,584) | (10,584) |
Accumulated other comprehensive income (loss) | 14 | (14) |
Accumulated deficit | (274,412) | (265,760) |
Total stockholders’ equity | 12,347 | 17,608 |
Total liabilities and stockholders’ equity | $ 136,232 | $ 141,517 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
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 | 56,336,156 | 55,867,619 |
Common stock, shares outstanding | 56,336,156 | 55,867,619 |
Treasury stock, shares outstanding | 2,469,978 | 2,469,978 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Total revenue | $ 33,017 | $ 35,767 |
Cost of revenue | ||
Total cost of revenue | 12,638 | 12,075 |
Gross profit | 20,379 | 23,692 |
Operating expenses: | ||
Research and development | 8,763 | 9,279 |
Sales and Marketing Expense | 14,497 | 15,670 |
General and administrative | 6,011 | 5,954 |
Total operating expenses | 29,271 | 30,903 |
Operating loss | (8,892) | (7,211) |
Interest income | 496 | 289 |
Interest expense | (207) | (164) |
Other income (expense), net | 3 | (173) |
Loss before income taxes | (8,600) | (7,259) |
Provision for income taxes | 52 | 58 |
Net loss | $ (8,652) | $ (7,317) |
Net loss per share, basic and diluted (USD per share) | $ (0.15) | $ (0.13) |
Weighted-average shares used in computing net loss per share, basic and diluted | 56,029,568 | 54,332,767 |
Stock-based compensation | $ 3,585 | $ 3,671 |
Cost of Sales | ||
Operating expenses: | ||
Stock-based compensation | 226 | 246 |
Research and development | ||
Operating expenses: | ||
Stock-based compensation | 1,086 | 1,046 |
Sales and marketing | ||
Operating expenses: | ||
Stock-based compensation | 926 | 997 |
General and administrative | ||
Operating expenses: | ||
Stock-based compensation | 1,347 | 1,382 |
Product | ||
Revenue: | ||
Total revenue | 20,486 | 25,066 |
Cost of revenue | ||
Total cost of revenue | 8,997 | 8,671 |
Subscription and support | ||
Revenue: | ||
Total revenue | 12,531 | 10,701 |
Cost of revenue | ||
Total cost of revenue | $ 3,641 | $ 3,404 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (8,652) | $ (7,317) |
Unrealized gain (loss) on available-for-sale investments, net of tax | 28 | (39) |
Comprehensive loss | $ (8,624) | $ (7,356) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) Statement - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional paid-in capital | Accumulated deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (shares) at Dec. 31, 2017 | 54,171,498 | |||||
Beginning balance at Dec. 31, 2017 | $ 24,914 | $ 55 | $ (6,216) | $ 278,528 | $ (247,423) | $ (30) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued upon exercise of options and ESPP (shares) | 11,386 | |||||
Shares issued upon exercise of options and ESPP | 27 | $ 0 | 27 | |||
Issuance of common stock upon vesting of RSUs (in shares) | 699,069 | |||||
Issuance of common stock upon vesting of RSUs | 0 | 0 | ||||
Shares repurchased for tax withholdings on vesting of RSUs (in shares) | (256,029) | |||||
Shares repurchased for tax withholdings on vesting of RSUs | (1,080) | 1,080 | ||||
Stock-based compensation | 3,671 | 3,671 | ||||
Unrealized gain (loss) on available for sale investments | (39) | (39) | ||||
Net loss | (7,317) | (7,317) | ||||
Ending balance (shares) at Mar. 31, 2018 | 54,625,924 | |||||
Ending balance at Mar. 31, 2018 | 20,176 | $ 55 | (6,216) | 281,146 | (254,740) | (69) |
Beginning balance (shares) at Dec. 31, 2018 | 55,867,619 | |||||
Beginning balance at Dec. 31, 2018 | $ 17,608 | $ 56 | (10,584) | 293,910 | (265,760) | (14) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued upon exercise of options and ESPP (shares) | 12,495 | 12,495 | ||||
Shares issued upon exercise of options and ESPP | $ 21 | $ 0 | 21 | |||
Issuance of common stock upon vesting of RSUs (in shares) | 503,845 | |||||
Issuance of common stock upon vesting of RSUs | 0 | 0 | ||||
Shares repurchased for tax withholdings on vesting of RSUs (in shares) | (47,803) | |||||
Shares repurchased for tax withholdings on vesting of RSUs | (243) | 243 | ||||
Stock-based compensation | 3,585 | 3,585 | ||||
Unrealized gain (loss) on available for sale investments | 28 | 28 | ||||
Net loss | (8,652) | (8,652) | ||||
Ending balance (shares) at Mar. 31, 2019 | 56,336,156 | |||||
Ending balance at Mar. 31, 2019 | $ 12,347 | $ 56 | $ (10,584) | $ 297,273 | $ (274,412) | $ 14 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (8,652) | $ (7,317) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 763 | 708 |
Stock-based compensation | 3,585 | 3,671 |
Other | (318) | (116) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (2,619) | (1,812) |
Inventories | 799 | (63) |
Prepaid expenses and other current assets | (189) | 191 |
Operating lease right-of-use assets and other assets | 339 | (109) |
Accounts payable | (3,743) | (56) |
Accrued liabilities and other current liabilities | (1,819) | (792) |
Operating lease liabilities, non-current and other liabilities | (181) | 12 |
Deferred revenue | 1,747 | 838 |
Net cash used in operating activities | (10,288) | (4,845) |
Cash flows from investing activities | ||
Purchases of property and equipment | (290) | (1,185) |
Maturities of short-term investments | 30,800 | 22,950 |
Purchases of short-term investments | (25,620) | (21,587) |
Net cash provided by investing activities | 4,890 | 178 |
Cash flows from financing activities | ||
Proceeds from employee stock option exercises and employee stock purchase plan | 21 | 28 |
Payment for shares withheld for tax withholdings on vesting of restricted stock units | (243) | (1,080) |
Payment on finance lease (capital lease prior to adoption of ASC 842) | (49) | (46) |
Net cash used in financing activities | (271) | (1,098) |
Net decrease in cash and cash equivalents | (5,669) | (5,765) |
Cash and cash equivalents at beginning of period | 26,049 | 27,249 |
Cash and cash equivalents at end of period | 20,380 | 21,484 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 67 | 36 |
Interest paid | 209 | 168 |
Supplemental disclosure of noncash investing and financing activities | ||
Unpaid property and equipment purchases | $ 76 | $ 196 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
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 networking platform and product portfolio using cloud management, machine learning and artificial intelligence to simplify and secure the access network. 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 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. Our cloud-managed wireless, switching, routing and security technologies provide flexibility and scalability in the deployment, management and licensing of networks globally. 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 condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"), which includes the accounts of Aerohive Networks, Inc. and its wholly owned subsidiaries. The Company has eliminated all intercompany accounts and transactions in consolidation. There have been no material changes in the Company’s significant accounting policies, other than the adoption of accounting pronouncement noted below, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. 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 condensed consolidated financial statements and accompanying notes. Those estimates and assumptions include, among others, the determination of a standalone selling price ("SSP") for revenue arrangements with multiple performance obligations, 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 reporting 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 condensed consolidated statements of operations. Foreign currency exchange gain (losses) has 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 February 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) , which supersedes the lease accounting requirements in Topic 840. On January 1, 2019, the Company adopted ASC 842 and the related subsequent accounting updates which require recognition of right-of-use ("ROU") assets and associated lease liabilities for most leases on the Company's consolidated balance sheets. The Company adopted the lease standard under the modified retrospective transition method which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption. There was no cumulative-effect adjustment recorded to retained earnings on January 1, 2019. Under the modified retrospective transition method, the Company did not restate financial information reported in periods prior to 2019. The Company elected the package of practical expedients permitted under the transition guidance, which allows the Company to carry forward its historical lease classification, its assessment on whether a contract is or contains a lease, and its indirect costs for any leases that exist prior to adoption of the new standard. The Company also elected to combine lease and non-lease components for all underlying classes of assets. For leases with a term of 12 months or less and with no purchase option the Company is reasonably certain to exercise, the Company elected the short-term lease exemption, which allows the Company not to recognize ROU assets or lease liabilities for qualifying leases existing at transition and new leases the Company may enter into in the future. The primary impact from the adoption of ASC 842 was the recognition of the ROU assets and lease liabilities for operating leases of $4.3 million and $4.6 million , respectively, on January 1, 2019 which included reclassification of prepaid rent and deferred rent as a component of the ROU asset. The adoption of this standard had no impact on the Company's condensed consolidated statements of operations and condensed consolidated statements of cash flows or debt-covenant compliance under its current agreements. See Note 5 Leases, Commitments and Contingencies for additional information. Leases The Company determines if an arrangement is a lease at inception. The Company evaluates the classification of leases at inception and as necessary at modification. The Company separately discloses operating lease ROU assets and liabilities on the Company's condensed consolidated balance sheets. Finance leases are included in property and equipment, accrued liabilities and other liabilities on the Company’s condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The Company recognizes operating lease ROU assets and lease liabilities at commencement date based on the present value of lease payments over the lease term. When readily determinable, the Company uses the rate implicit in the lease to discount lease payments; however, when the rate is not readily determinable, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments. The operating lease ROU asset also includes any lease payments made prior to lease commencement and excludes lease incentives. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. The Company's lease terms are the non-cancelable period including any rent-free periods provided by the lessor and include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. At lease inception, and in subsequent periods as necessary, the Company estimates the lease term based on its assessment of extension and termination options that are reasonably certain to be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not separate non-lease components from lease components for all underlying classes of assets. In addition, the Company does not recognize ROU assets and lease liabilities for short-term leases, which have a lease term of twelve months. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. Recent Accounting Pronouncements 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 currently 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 distributors, value-added resellers ("VARs"), managed service providers ("MSPs"), and original equipment manufacturers ("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 channel partners that are part of a consolidated group of entities which collectively constitute greater than 10% of the Company’s total revenue or accounts receivable balance for certain periods, as presented in the tables below. The percentages of revenue from a consolidated group of entities (Channel Partner A and Channel Partner B) greater than 10% of total consolidated revenue were as follows: Three Months Ended March 31, 2019 2018 Channel Partner A 40.1 % 35.1 % Channel Partner B 17.7 % 17.2 % The percentages of receivables from a consolidated group of entities (Channel Partner A and Channel Partner B) greater than 10% of total consolidated accounts receivable were as follows: March 31, December 31, 2019 2018 Channel Partner A 41.0 % 21.4 % Channel Partner B 22.3 % 31.7 % |
FAIR VALUE DISCLOSURE
FAIR VALUE DISCLOSURE | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018, 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 the Company values them based on quoted market prices in active markets. Level 2 assets include U.S. treasuries, corporate securities and commercial paper. The Company classifies these instruments within Level 2 of the fair value hierarchy because the Company values them based on pricing the Company obtains from an independent pricing service, which may use quoted market prices for identical or comparable instruments or model driven valuations using observable market data 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 were as follows: March 31, 2019 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 7,813 — 7,813 7,813 — $ 7,813 $ — $ 7,813 $ 7,813 $ — Level 2: U.S. treasuries 15,238 4 15,242 — 15,242 Corporate securities 19,732 10 19,742 — 19,742 Commercial paper 28,223 — 28,223 1,989 26,234 $ 63,193 $ 14 $ 63,207 $ 1,989 $ 61,218 Total $ 71,006 $ 14 $ 71,020 $ 9,802 $ 61,218 December 31, 2018 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 8,482 — 8,482 8,482 — $ 8,482 $ — $ 8,482 $ 8,482 $ — Level 2: U.S. treasuries 8,988 (2 ) 8,986 — 8,986 Corporate securities 20,698 (12 ) 20,686 — 20,686 Commercial paper 36,380 — 36,380 — 36,380 $ 66,066 $ (14 ) $ 66,052 $ — $ 66,052 Total $ 74,548 $ (14 ) $ 74,534 $ 8,482 $ 66,052 All short-term investments the Company held as of March 31, 2019 and December 31, 2018 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 March 31, 2019 and December 31, 2018. |
CONSOLIDATED BALANCE SHEET COMP
CONSOLIDATED BALANCE SHEET COMPONENTS | 3 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
CONSOLIDATED BALANCE SHEET COMPONENTS | CONSOLIDATED BALANCE SHEET COMPONENTS Account Receivable Allowances The allowance for rebates was approximately $3.5 million and $3.8 million as of March 31, 2019 and December 31, 2018, respectively. The allowance for sales return was approximately $0.3 million and $1.2 million as of March 31, 2019 and December 31, 2018, respectively. The allowance for doubtful accounts were immaterial as of March 31, 2019 and December 31, 2018. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: March 31, December 31, 2019 2018 (in thousands) Deferred sales commissions, current portion $ 3,263 $ 3,171 Prepaid expenses 2,173 2,478 Other 992 750 Total prepaid expenses and other current assets $ 6,428 $ 6,399 Property and Equipment, Net Property and equipment, net consists of the following: March 31, December 31, Estimated Useful Lives 2019 2018 (in thousands) Computer and other equipment 3 years $ 1,677 $ 1,668 Manufacturing, research and development laboratory equipment 3 years 5,775 5,693 Software 2 to 5 years 9,470 9,462 Office furniture and equipment 3 to 7 years 2,078 2,052 Leasehold improvements shorter of useful life or lease term 1,067 1,049 Property and equipment, gross 20,067 19,924 Less: Accumulated depreciation and amortization (14,739 ) (13,977 ) Property and equipment, net $ 5,328 $ 5,947 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 $0.7 million for the three months ended March 31, 2019 and 2018, respectively. Office furniture and equipment classified under finance lease and capital lease prior to adoption of ASC 842 was $1.2 million at March 31, 2019 and December 31, 2018 respectively, and the related accumulated depreciation was $0.7 million and $0.7 million at March 31, 2019 and December 31, 2018, respectively. The amortization of finance lease right-of-use assets (depreciation expense prior to ASC 842) were not material for the three months ended March 31, 2019 and 2018. Other Assets Other assets consist of the following: March 31, December 31, 2019 2018 (in thousands) Deferred sales commissions, non-current portion $ 3,130 $ 3,085 Investment in privately held company 750 750 Other 407 420 Total other assets $ 4,287 $ 4,255 Deferred Sales Commission The current portion of deferred commission represents the amounts that the Company expects to recognize 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 months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 6,256 $ 6,019 Recognized (1,519 ) (3,018 ) Additions 1,656 3,084 Total deferred sales commission $ 6,393 $ 6,085 Current portion $ 3,263 $ 3,100 Non-current portion $ 3,130 $ 2,985 Of the $6.4 million total deferred commission balance as of March 31, 2019, the Company expects to recognize approximately 51% as commission expense over the next 12 months and the remainder thereafter. Investment in Privately Held Company 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. The Company reviews the carrying value of the investment quarterly for indicators of fair value changes when there are observable prices less any potential impairment. As of December 31, 2018, the Company noted the deterioration in the fair value of the investment and as such took an impairment charge of approximately $0.8 million . The Company determined that the fair value of the investment as of December 31, 2018 to be $0.8 million . The Company did not recognize a change in value or impairment for the three months ended March 31, 2019 , 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: March 31, December 31, 2019 2018 (in thousands) Accrued compensation $ 6,064 $ 7,492 Accrued expenses and other liabilities 1,081 1,169 Warranty liability, current portion 245 276 Total accrued liabilities $ 7,390 $ 8,937 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 months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 77,261 $ 67,040 Recognized (12,531 ) (10,701 ) Additions 14,278 11,539 Total deferred revenue $ 79,008 $ 67,878 Current portion $ 39,681 $ 33,885 Non-current portion $ 39,327 $ 33,993 Of the $79.0 million total deferred revenue balance as of March 31, 2019, the Company expects to recognize approximately 50% as revenue over the next 12 months and the remainder thereafter. 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-but-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 $79.8 million as of March 31, 2019, of which the Company expects to recognize approximately 51% 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 March 31, 2019 2018 (in thousands) Beginning balance $ 615 $ 577 Charges to operations 217 126 Obligations fulfilled (230 ) (153 ) Changes in existing warranty (14 ) (4 ) Total product warranties $ 588 $ 546 Current portion $ 245 $ 217 Non-current portion $ 343 $ 329 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 amended the Revolving Credit Facility to extend the maturity date by two years and reduce the minimum cash requirements. In January 2019, the Company further amended the Revolving Credit Facility to extend the maturity rate by two years through March 31, 2021 and to adjust the interest rate on the outstanding borrowings to be the lesser of (i) LIBOR rate plus 1.50% or (ii) prime rate minus 1.25% , or lesser of (i) LIBOR rate plus 1.75% or (ii) prime rate minus 1.00% depending on the provisions of the loan agreement. The weighted-average interest rate of the Revolving Credit Facility was 4.19% and 3.28% for the three months ended March 31, 2019 and 2018, 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 net cash, cash equivalent and investment 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 March 31, 2019 , the Company was in compliance with these covenants. The Revolving Credit facility currently provides, among other things (i) a maturity date of March 31, 2021; and (ii) a revolving line up to $20.0 million , subject to certain conditions. As of March 31, 2019 , $20.0 million remains outstanding under the Revolving Credit Facility, and the Company classifies this amount as a non-current liability in the condensed consolidated balance sheet. |
LEASES, COMMITMENTS AND CONTING
LEASES, COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEASES, COMMITMENTS AND CONTINGENCIES | LEASES, COMMITMENTS AND CONTINGENCIES Operating Leases The Company currently leases its main office facility in Milpitas, California, which lease is set to expire in June 2023. In addition, the Company has entered into various lease agreements in other locations in United States and globally for datacenter, sales offices and research and development facilities that expire at various times through September 2022. Some of the Company's leases include options to renew or terminate the lease. The Company does not assume renewals or terminations in its determination of lease term unless the Company determines these to be reasonably certain at lease commencement. The Company's lease agreements do not contain any material value guarantees or material restrictive covenants. For operating leases, the Company recognizes lease expense on a straight-line basis over the respective lease term. Information related to the Company's right-of-use assets and related lease liabilities for the three months ended March 31, 2019 are as follows: Three Months Ended March 31, 2019 (in thousands) Cash paid for operating lease liabilities $ 640 Right-of-use assets obtained in exchange for new operating lease obligations (1) $ 4,327 Weighted-average remaining lease term 4.0 years Weighted-average discount rate 5.43 % (1) Represents the amount for operating leases existing on January 1, 2019. There were no new leases that commenced in the first quarter of 2019. The maturities of the Company's operating lease liabilities as of March 31, 2019 are as follows: Amount Year Ending December 31, (in thousands) 2019 (remaining nine months) $ 858 2020 1,124 2021 1,101 2022 948 2023 445 Total minimum lease payments $ 4,476 Less: amount representing interest $ 463 Total operating lease liabilities $ 4,013 Operating lease liabilities, current $ 927 Operating lease liabilities, non-current $ 3,086 Operating lease expense was $0.5 million for the three months ended March 31, 2019 and 2018, respectively. Short term lease expense for the three months ended March 31, 2019 was not material. The total variable lease expense was $0.2 million for the three months ended March 31, 2019. The Company has an additional operating lease for real estate of $0.5 million which has not commenced as of March 31, 2019 and, as such, have not been recognized on the Company's consolidated balance sheet. This operating lease will commence during the period ending June 30, 2019 and has a lease term of two years. Finance Leases The Company has certain office furniture and equipment that it classifies as a finance lease. The terms of the finance lease range from three years to seven years. The interest expense is immaterial in any particular period. The weighted average remaining term for finance lease is four years. The maturities of the Company's finance leases as of March 31, 2019 are as follows: Amount Year Ending December 31, (in thousands) 2019 (remaining nine months) $ 138 2020 182 2021 179 2022 162 2023 83 Total finance lease obligations $ 744 Finance lease liabilities, current $ 183 Finance lease liabilities, non-current $ 561 ASC 840 Disclosures As of December 31, 2018, future minimum lease payments under non-cancelable operating leases and finance leases were as follows (amounts in thousands): Operating Leases Finance Leases Year Ending December 31, 2019 $ 1,562 $ 176 2020 1,082 171 2021 1,071 169 2022 987 162 2023 445 83 Total $ 5,147 $ 761 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 March 31, 2019 and December 31, 2018, the Company had manufacturing commitments with contract manufacturers for inventory totaling approximately $5.2 million and $5.0 million , respectively. Other Purchase Commitments In August 2018, the Company amended an agreement with a third-party provider for our use of certain cloud services. Under the non-cancelable addendum, the Company is committed to a minimum purchase of $11.7 million between September 2018 and August 2021. As of March 31, 2019 , the Company's remaining purchase commitment under the addendum was $9.9 million . Contingencies The Company may be subject to legal proceedings and litigation arising from time to time. The Company will record a liability when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. The Company expects periodically to evaluate developments in its legal matters that could affect the amount of liability that it has previously accrued, if any, and make adjustments as appropriate. The Company exercises significant judgment to determine both likelihood of there being, and the estimated amount of, a loss related to such matters, and the Company’s judgment may be incorrect. The Company cannot reasonably determine in advance the outcome of any litigation proceeding. Until the final resolution of any such matter for which the Company may be required to accrue, the Company may have an exposure to loss in excess of the amount the Company has accrued, and such excess amount could be significant. The Company is currently engaged in the following separate litigations: • 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. Those actions were subsequently consolidated into a single action titled as McGovney v. Aerohive Networks, Inc., et al., Case No. 5:18-cv-00435. The consolidated complaint, as amended, alleges that the defendants made false and misleading statements, in particular regarding the Company’s financial outlook for the fourth quarter of 2017. In February 2019, the Court granted the defendants’ motion to dismiss the consolidated amended complaint, finding that the Complaint failed to state a claim against any defendant. In March 2019, the lead plaintiff filed a second consolidated amended complaint (the “Complaint”). Like the prior complaint, the Complaint alleges that the defendants made false and misleading statements, in particular regarding the Company’s financial outlook for the fourth quarter of 2017. The Complaint asserts 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 Complaint seeks monetary damages in an unspecified amount. Defendants have filed a further motion to dismiss the Complaint, which is currently scheduled to be heard by the Court in the second half of 2019. • 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 action described above. • In September 2018, Modern Telecom Systems, LLC, or MTS, filed a complaint in the U.S. District Court, for the District of Delaware, asserting that certain of the Company's products which utilize aspects of the IEEE 802.11 standard infringed United States Patent No. 6,504,886 prior to such patent's expiration. The Company has resolved this matter in return for a nominal payment. • In March 2019, Orostream, LLC, or Orostream, filed a complaint in the U.S. District Court, for the district of Delaware, asserting that certain of the Company’s products which utilize aspects of the IEEE 802.11 standard infringed United States Patent No. 5,768,508 prior to such patent’s expiration. The Company is evaluating the possible application of these claims, if any, to its products. • A former employee in Korea has asserted claims that Company wrongfully terminated his employment. Following administrative proceedings in Korea, the Company has been ordered to reinstate the employee and pay certain past wages. The Company is appealing this matter to the civil law courts in Korea. For the three months ended March 31, 2019, the liabilities incurred to settle the above matters were not material to the condensed consolidated financial statements. 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 | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Common Stock Reserved for Future Issuance As of March 31, 2019 , the Company had the following reserved shares of common stock for future issuance: March 31, 2019 Common stock reserved for future grant under the 2014 Equity Incentive Plan 11,880,866 Common stock reserved for future purchase under the 2014 Employee Stock Purchase Plan 1,811,460 Options and Restricted Stock Units issued and outstanding 7,603,830 Total reserved shares of common stock for future issuance 21,296,156 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 further extended this program through June 30, 2020 . During the three months ended March 31, 2019 and 2018, respectively, the Company did not repurchase any shares. As of March 31, 2019, the Company had repurchased under this program a total of 2,469,978 shares of its common stock at a total price $10.6 million with an average purchase price $4.29 per share of the Company's common stock. Approximately $9.4 million remains available to the Company as of March 31, 2019 for repurchases under this program. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION 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 2019, the Company effected an increase of 2,793,380 shares reserved under the 2014 Plan. As of March 31, 2019 , the Company had 11,880,866 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 March 31, 2019 : Shares Available for Grant Balance, December 31, 2018 9,498,884 Authorized 2,793,380 Options granted — Options canceled 168,997 Awards granted (812,752 ) Awards canceled 232,357 Balance, March 31, 2019 11,880,866 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, 2018 3,442,005 $ 5.99 4.61 $ 1,546 Options granted — — Options exercised (12,495 ) 1.65 Options canceled (168,997 ) 7.75 Balance, March 31, 2019 3,260,513 $ 5.92 4.56 $ 2,534 Options exercisable, March 31, 2019 3,157,548 $ 5.90 4.50 $ 2,534 There were no options granted during the three months ended March 31, 2019 and 2018 respectively. The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2019 and 2018 was $0.04 million and $0.03 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 $0.3 million and $0.7 million , respectively, during the three months ended March 31, 2019 and 2018, 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 March 31, 2019 : Restricted Stock Units Outstanding Shares Weighted-Average Fair Value Per Share Balance, December 31, 2018 4,218,964 $ 4.35 Awards granted 812,752 4.00 Awards vested (503,845 ) 4.99 Awards canceled (184,554 ) 4.49 Balance, March 31, 2019 4,343,317 $ 4.20 The weighted-average grant-date fair value of RSUs the Company granted during the three months ended March 31, 2019 and 2018 was $4.00 and $4.30 per share, respectively. The aggregate grant-date fair value of RSUs the Company granted during the three months ended March 31, 2019 and 2018 was $3.3 million and $3.7 million , respectively. The aggregate fair value of shares vested as of the respective vesting dates during the three months ended March 31, 2019 and 2018 was $2.5 million and $1.3 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 March 31, 2019 and 2018, the Company withheld 47,803 and 256,029 shares of stock, respectively, for an aggregate value of $0.2 million and $1.1 million , respectively. The Company returned such withheld shares to the 2014 Plan, which were then available under the plan terms for future issuance. The Company grants 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. The Company did not grant any performance-based restricted stock units (PBRSUs) during the three months ended March 31, 2019 and 2018, respectively. Of the PBRSU awards granted in prior years, 14,014 and 251,037 shares of PBRSU vested during the three months ended March 31, 2019 and 2018, respectively. The Company does not currently expect any additional PBRSU to vest during the remainder of the fiscal year 2019. The Company also grants shares of RSUs as market-based restricted stock units (MBRSUs) to certain executives 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 estimates 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 Company records the total expense related to these MBRSUs on a graded-vesting method over the estimated term. The Company did not grant any MBRSU's during the three months ended March 31, 2019 and 2018, respectively. There were no MBRSU shares that vested during the three months ended March 31, 2019. 36,625 shares of MBRSU vested during the three months ended March 31, 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 2019, the Company effected an increase of 558,676 shares reserved under the ESPP. As of March 31, 2019 , the Company had 1,811,460 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, 2019, 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. The Company did not issue any shares under the ESPP during the three months ended March 31, 2019. Determination of Fair Values The Company used the following weighted-average assumptions to value employee stock purchase rights under the Black-Scholes model: Three Months Ended March 31, 2019 2018 ESPP purchase rights: Expected term (in years) 0.50 - 1.00 0.50 - 1.00 Expected volatility 37% - 46% 46% - 48% Risk free interest rate 2.52% - 2.70% 1.45% - 1.62% 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 March 31, 2019 2018 (in thousands) Cost of revenue $ 226 $ 246 Research and development 1,086 1,046 Sales and marketing 926 997 General and administrative 1,347 1,382 Total stock-based compensation $ 3,585 $ 3,671 The following table presents stock-based compensation expense by award-type: Three Months Ended March 31, 2019 2018 (in thousands) Stock Options $ 274 $ 541 Restricted Stock Units 2,994 2,792 Employee Stock Purchase Plan 317 338 Total stock-based compensation $ 3,585 $ 3,671 The stock-based compensation expense the Company recorded for RSU for the three months ended March 31, 2019 and 2018 includes the amount of stock-based compensation recorded for MBRSUs of approximately $0.2 million and $0.2 million , respectively, and for the three months ended March 31, 2018 includes the amount of stock-based compensation the Company recorded for PBRSUs of approximately $0.2 million . The stock-based compensation expense the Company recorded for PBRSU for the three months ended March 31, 2019 was not material. As of March 31, 2019 , unrecognized stock-based compensation related to outstanding stock options, RSUs (including PBRSUs and MBRSUs) and ESPP purchase rights, was $0.2 million , $14.1 million and $0.8 million , respectively, which the Company expects to recognize over weighted-average periods of 0.28 years , 1.85 years and 0.67 years , respectively. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (in thousands, except for share and per share data) Numerator: Net loss $ (8,652 ) $ (7,317 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 56,029,568 54,332,767 Net loss per share: Basic and diluted $ (0.15 ) $ (0.13 ) 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 March 31, 2019 2018 Shares of common stock issuable under the Equity Incentive Plan 7,603,830 7,559,655 Employee Stock Purchase Plan 314,085 456,426 Total 7,917,915 8,016,081 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's provision for income taxes was approximately $0.1 million , for the three months ended March 31, 2019 and 2018, respectively. The Company's provision for income taxes consisted primarily of state taxes and foreign income taxes. For the three months ended March 31, 2019 and 2018, 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 March 31, 2019 and December 31, 2018, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (in thousands) Americas $ 17,238 $ 20,830 Europe, Middle East and Africa 12,758 11,900 Asia Pacific 3,021 3,037 Total revenues $ 33,017 $ 35,767 The Company has included within Americas in the above table revenue from sales in the United States of $15.6 million and $19.0 million , respectively, for the three months ended March 31, 2019 and 2018. Aside from the United States, no country comprised 10% or more of the Company's total revenue for each of the three months ended March 31, 2019 and 2018, respectively. Property and equipment, net by location is summarized as follows: March 31, December 31, 2019 2018 (in thousands) United States $ 4,013 $ 4,514 People's Republic of China 1,135 1,269 Europe, Middle East and Africa 180 164 Total property and equipment, net $ 5,328 $ 5,947 |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 networking platform and product portfolio using cloud management, machine learning and artificial intelligence to simplify and secure the access network. 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 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. Our cloud-managed wireless, switching, routing and security technologies provide flexibility and scalability in the deployment, management and licensing of networks globally. The Company has offices in North America, Europe and Asia Pacific and employs staff around the world. |
Basis of Presentation | The Company has eliminated all intercompany accounts and transactions in consolidation. |
Significant Accounting Policies | There have been no material changes in the Company’s significant accounting policies, other than the adoption of accounting pronouncement noted below, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. |
Consolidation | The Company prepared the accompanying condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"), which includes the accounts of Aerohive Networks, Inc. and its wholly owned subsidiaries. |
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 condensed consolidated financial statements and accompanying notes. Those estimates and assumptions include, among others, the determination of a standalone selling price ("SSP") for revenue arrangements with multiple performance obligations, 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 reporting 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 condensed consolidated statements of operations. Foreign currency exchange gain (losses) has 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 February 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) , which supersedes the lease accounting requirements in Topic 840. On January 1, 2019, the Company adopted ASC 842 and the related subsequent accounting updates which require recognition of right-of-use ("ROU") assets and associated lease liabilities for most leases on the Company's consolidated balance sheets. The Company adopted the lease standard under the modified retrospective transition method which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption. There was no cumulative-effect adjustment recorded to retained earnings on January 1, 2019. Under the modified retrospective transition method, the Company did not restate financial information reported in periods prior to 2019. The Company elected the package of practical expedients permitted under the transition guidance, which allows the Company to carry forward its historical lease classification, its assessment on whether a contract is or contains a lease, and its indirect costs for any leases that exist prior to adoption of the new standard. The Company also elected to combine lease and non-lease components for all underlying classes of assets. For leases with a term of 12 months or less and with no purchase option the Company is reasonably certain to exercise, the Company elected the short-term lease exemption, which allows the Company not to recognize ROU assets or lease liabilities for qualifying leases existing at transition and new leases the Company may enter into in the future. The primary impact from the adoption of ASC 842 was the recognition of the ROU assets and lease liabilities for operating leases of $4.3 million and $4.6 million , respectively, on January 1, 2019 which included reclassification of prepaid rent and deferred rent as a component of the ROU asset. The adoption of this standard had no impact on the Company's condensed consolidated statements of operations and condensed consolidated statements of cash flows or debt-covenant compliance under its current agreements. See Note 5 Leases, Commitments and Contingencies for additional information. Leases The Company determines if an arrangement is a lease at inception. The Company evaluates the classification of leases at inception and as necessary at modification. The Company separately discloses operating lease ROU assets and liabilities on the Company's condensed consolidated balance sheets. Finance leases are included in property and equipment, accrued liabilities and other liabilities on the Company’s condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The Company recognizes operating lease ROU assets and lease liabilities at commencement date based on the present value of lease payments over the lease term. When readily determinable, the Company uses the rate implicit in the lease to discount lease payments; however, when the rate is not readily determinable, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments. The operating lease ROU asset also includes any lease payments made prior to lease commencement and excludes lease incentives. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. The Company's lease terms are the non-cancelable period including any rent-free periods provided by the lessor and include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. At lease inception, and in subsequent periods as necessary, the Company estimates the lease term based on its assessment of extension and termination options that are reasonably certain to be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not separate non-lease components from lease components for all underlying classes of assets. In addition, the Company does not recognize ROU assets and lease liabilities for short-term leases, which have a lease term of twelve months. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. Recent Accounting Pronouncements 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 currently 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 distributors, value-added resellers ("VARs"), managed service providers ("MSPs"), and original equipment manufacturers ("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 S_3
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of Revenue from Individual Customers | The percentages of revenue from a consolidated group of entities (Channel Partner A and Channel Partner B) greater than 10% of total consolidated revenue were as follows: Three Months Ended March 31, 2019 2018 Channel Partner A 40.1 % 35.1 % Channel Partner B 17.7 % 17.2 % The percentages of receivables from a consolidated group of entities (Channel Partner A and Channel Partner B) greater than 10% of total consolidated accounts receivable were as follows: March 31, December 31, 2019 2018 Channel Partner A 41.0 % 21.4 % Channel Partner B 22.3 % 31.7 % |
FAIR VALUE DISCLOSURE (Tables)
FAIR VALUE DISCLOSURE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 were as follows: March 31, 2019 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 7,813 — 7,813 7,813 — $ 7,813 $ — $ 7,813 $ 7,813 $ — Level 2: U.S. treasuries 15,238 4 15,242 — 15,242 Corporate securities 19,732 10 19,742 — 19,742 Commercial paper 28,223 — 28,223 1,989 26,234 $ 63,193 $ 14 $ 63,207 $ 1,989 $ 61,218 Total $ 71,006 $ 14 $ 71,020 $ 9,802 $ 61,218 December 31, 2018 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 8,482 — 8,482 8,482 — $ 8,482 $ — $ 8,482 $ 8,482 $ — Level 2: U.S. treasuries 8,988 (2 ) 8,986 — 8,986 Corporate securities 20,698 (12 ) 20,686 — 20,686 Commercial paper 36,380 — 36,380 — 36,380 $ 66,066 $ (14 ) $ 66,052 $ — $ 66,052 Total $ 74,548 $ (14 ) $ 74,534 $ 8,482 $ 66,052 |
CONSOLIDATED BALANCE SHEET CO_2
CONSOLIDATED BALANCE SHEET COMPONENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: March 31, December 31, 2019 2018 (in thousands) Deferred sales commissions, current portion $ 3,263 $ 3,171 Prepaid expenses 2,173 2,478 Other 992 750 Total prepaid expenses and other current assets $ 6,428 $ 6,399 |
Schedule of Property and Equipment | Property and equipment, net consists of the following: March 31, December 31, Estimated Useful Lives 2019 2018 (in thousands) Computer and other equipment 3 years $ 1,677 $ 1,668 Manufacturing, research and development laboratory equipment 3 years 5,775 5,693 Software 2 to 5 years 9,470 9,462 Office furniture and equipment 3 to 7 years 2,078 2,052 Leasehold improvements shorter of useful life or lease term 1,067 1,049 Property and equipment, gross 20,067 19,924 Less: Accumulated depreciation and amortization (14,739 ) (13,977 ) Property and equipment, net $ 5,328 $ 5,947 |
Schedule of Other Assets | Other assets consist of the following: March 31, December 31, 2019 2018 (in thousands) Deferred sales commissions, non-current portion $ 3,130 $ 3,085 Investment in privately held company 750 750 Other 407 420 Total other assets $ 4,287 $ 4,255 |
Schedule of Deferred Commission Expense | Significant changes in the balance of total deferred commission (contract asset) during the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 6,256 $ 6,019 Recognized (1,519 ) (3,018 ) Additions 1,656 3,084 Total deferred sales commission $ 6,393 $ 6,085 Current portion $ 3,263 $ 3,100 Non-current portion $ 3,130 $ 2,985 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: March 31, December 31, 2019 2018 (in thousands) Accrued compensation $ 6,064 $ 7,492 Accrued expenses and other liabilities 1,081 1,169 Warranty liability, current portion 245 276 Total accrued liabilities $ 7,390 $ 8,937 |
Summary of Deferred Revenue | Significant changes in the balance of total deferred revenue (contract liability) during the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 77,261 $ 67,040 Recognized (12,531 ) (10,701 ) Additions 14,278 11,539 Total deferred revenue $ 79,008 $ 67,878 Current portion $ 39,681 $ 33,885 Non-current portion $ 39,327 $ 33,993 |
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 March 31, 2019 2018 (in thousands) Beginning balance $ 615 $ 577 Charges to operations 217 126 Obligations fulfilled (230 ) (153 ) Changes in existing warranty (14 ) (4 ) Total product warranties $ 588 $ 546 Current portion $ 245 $ 217 Non-current portion $ 343 $ 329 |
LEASES, COMMITMENTS AND CONTI_2
LEASES, COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Information | Information related to the Company's right-of-use assets and related lease liabilities for the three months ended March 31, 2019 are as follows: Three Months Ended March 31, 2019 (in thousands) Cash paid for operating lease liabilities $ 640 Right-of-use assets obtained in exchange for new operating lease obligations (1) $ 4,327 Weighted-average remaining lease term 4.0 years Weighted-average discount rate 5.43 % (1) Represents the amount for operating leases existing on January 1, 2019. There were no new leases that commenced in the first quarter of 2019. |
Maturities of Operating lease liabilities | The maturities of the Company's operating lease liabilities as of March 31, 2019 are as follows: Amount Year Ending December 31, (in thousands) 2019 (remaining nine months) $ 858 2020 1,124 2021 1,101 2022 948 2023 445 Total minimum lease payments $ 4,476 Less: amount representing interest $ 463 Total operating lease liabilities $ 4,013 Operating lease liabilities, current $ 927 Operating lease liabilities, non-current $ 3,086 |
Maturities of Finance lease liabilities | The maturities of the Company's finance leases as of March 31, 2019 are as follows: Amount Year Ending December 31, (in thousands) 2019 (remaining nine months) $ 138 2020 182 2021 179 2022 162 2023 83 Total finance lease obligations $ 744 Finance lease liabilities, current $ 183 Finance lease liabilities, non-current $ 561 |
Future Minimum Lease Payments under ASC 840 | As of December 31, 2018, future minimum lease payments under non-cancelable operating leases and finance leases were as follows (amounts in thousands): Operating Leases Finance Leases Year Ending December 31, 2019 $ 1,562 $ 176 2020 1,082 171 2021 1,071 169 2022 987 162 2023 445 83 Total $ 5,147 $ 761 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of shares reserved for future issuance | As of March 31, 2019 , the Company had the following reserved shares of common stock for future issuance: March 31, 2019 Common stock reserved for future grant under the 2014 Equity Incentive Plan 11,880,866 Common stock reserved for future purchase under the 2014 Employee Stock Purchase Plan 1,811,460 Options and Restricted Stock Units issued and outstanding 7,603,830 Total reserved shares of common stock for future issuance 21,296,156 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 : Shares Available for Grant Balance, December 31, 2018 9,498,884 Authorized 2,793,380 Options granted — Options canceled 168,997 Awards granted (812,752 ) Awards canceled 232,357 Balance, March 31, 2019 11,880,866 |
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, 2018 3,442,005 $ 5.99 4.61 $ 1,546 Options granted — — Options exercised (12,495 ) 1.65 Options canceled (168,997 ) 7.75 Balance, March 31, 2019 3,260,513 $ 5.92 4.56 $ 2,534 Options exercisable, March 31, 2019 3,157,548 $ 5.90 4.50 $ 2,534 |
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 March 31, 2019 : Restricted Stock Units Outstanding Shares Weighted-Average Fair Value Per Share Balance, December 31, 2018 4,218,964 $ 4.35 Awards granted 812,752 4.00 Awards vested (503,845 ) 4.99 Awards canceled (184,554 ) 4.49 Balance, March 31, 2019 4,343,317 $ 4.20 |
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 March 31, 2019 2018 ESPP purchase rights: Expected term (in years) 0.50 - 1.00 0.50 - 1.00 Expected volatility 37% - 46% 46% - 48% Risk free interest rate 2.52% - 2.70% 1.45% - 1.62% |
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 March 31, 2019 2018 (in thousands) Cost of revenue $ 226 $ 246 Research and development 1,086 1,046 Sales and marketing 926 997 General and administrative 1,347 1,382 Total stock-based compensation $ 3,585 $ 3,671 The following table presents stock-based compensation expense by award-type: Three Months Ended March 31, 2019 2018 (in thousands) Stock Options $ 274 $ 541 Restricted Stock Units 2,994 2,792 Employee Stock Purchase Plan 317 338 Total stock-based compensation $ 3,585 $ 3,671 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (in thousands, except for share and per share data) Numerator: Net loss $ (8,652 ) $ (7,317 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 56,029,568 54,332,767 Net loss per share: Basic and diluted $ (0.15 ) $ (0.13 ) |
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 March 31, 2019 2018 Shares of common stock issuable under the Equity Incentive Plan 7,603,830 7,559,655 Employee Stock Purchase Plan 314,085 456,426 Total 7,917,915 8,016,081 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (in thousands) Americas $ 17,238 $ 20,830 Europe, Middle East and Africa 12,758 11,900 Asia Pacific 3,021 3,037 Total revenues $ 33,017 $ 35,767 |
Schedule of property and equipment, net, by location | Property and equipment, net by location is summarized as follows: March 31, December 31, 2019 2018 (in thousands) United States $ 4,013 $ 4,514 People's Republic of China 1,135 1,269 Europe, Middle East and Africa 180 164 Total property and equipment, net $ 5,328 $ 5,947 |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 3,956 | |
Lease liabilities for operating leases | $ 4,013 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 4,300 | |
Lease liabilities for operating leases | $ 4,600 |
DESCRIPTION OF BUSINESS AND S_5
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk and Significant Customers (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Channel Partner A | Sales | |||
Revenue, Major Customer [Line Items] | |||
Significant customer, as a percentage | 40.10% | 35.10% | |
Channel Partner A | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Significant customer, as a percentage | 41.00% | 21.40% | |
Channel Partner B | Sales | |||
Revenue, Major Customer [Line Items] | |||
Significant customer, as a percentage | 17.70% | 17.20% | |
Channel Partner B | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Significant customer, as a percentage | 22.30% | 31.70% |
FAIR VALUE DISCLOSURE (Details)
FAIR VALUE DISCLOSURE (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 9,802 | $ 8,482 |
Total cash equivalents and short-term investments, Amortized Cost | 71,006 | 74,548 |
Total cash equivalents and short-term investments, Gross Unrealized Gain (Loss) | 14 | (14) |
Total cash equivalents and short-term investments, Fair Value | 71,020 | 74,534 |
Short-term Investments | 61,218 | 66,052 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents, Amortized Cost | 7,813 | 8,482 |
Cash equivalents | 7,813 | 8,482 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents, Amortized Cost | 7,813 | 8,482 |
Cash equivalents | 7,813 | 8,482 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,989 | 0 |
Short-term investments | 63,207 | 66,052 |
Securities, Amortized cost | 63,193 | 66,066 |
Securities, Gross Unrealized Gain (Loss) | 14 | (14) |
Short-term Investments | 61,218 | 66,052 |
Level 2 | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Level 2 | U.S. treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Level 2 | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,989 | |
Level 2 | U.S. treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 15,242 | 8,986 |
Securities, Amortized cost | 15,238 | 8,988 |
Securities, Gross Unrealized Gain (Loss) | 4 | (2) |
Short-term Investments | 15,242 | 8,986 |
Level 2 | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 19,742 | 20,686 |
Securities, Amortized cost | 19,732 | 20,698 |
Securities, Gross Unrealized Gain (Loss) | 10 | (12) |
Short-term Investments | 19,742 | 20,686 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 28,223 | 36,380 |
Securities, Amortized cost | 28,223 | 36,380 |
Securities, Gross Unrealized Gain (Loss) | 0 | 0 |
Short-term Investments | $ 26,234 | $ 36,380 |
CONSOLIDATED BALANCE SHEET CO_3
CONSOLIDATED BALANCE SHEET COMPONENTS - Account Receivable Allowances (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Account Receivables Allowance [Abstract] | ||
Allowance for rebates | $ 3.5 | $ 3.8 |
Allowance for sales return | $ 0.3 | $ 1.2 |
CONSOLIDATED BALANCE SHEET CO_4
CONSOLIDATED BALANCE SHEET COMPONENTS - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Prepaid expenses and other current assets [Abstract] | ||
Deferred Sales Commission | $ 3,263 | $ 3,171 |
Prepaid expenses | 2,173 | 2,478 |
Other | 992 | 750 |
Prepaid expenses and other current assets | $ 6,428 | $ 6,399 |
CONSOLIDATED BALANCE SHEET CO_5
CONSOLIDATED BALANCE SHEET COMPONENTS - Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Property and Equipment [Line Items] | |||
Property and equipment, gross | $ 20,067 | $ 19,924 | |
Less: Accumulated depreciation and amortization | (14,739) | (13,977) | |
Property and equipment, net | 5,328 | 5,947 | |
Depreciation and amortization expense | 800 | $ 700 | |
Assets under finance lease (capital lease prior to adoption of ASC 842) | 1,200 | 1,200 | |
Related accumulated depreciation | 700 | 700 | |
Computer and other equipment | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,677 | 1,668 | |
Estimated useful lives | 3 years | ||
Manufacturing, research and development laboratory equipment | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | $ 5,775 | 5,693 | |
Estimated useful lives | 3 years | ||
Software | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | $ 9,470 | 9,462 | |
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 | $ 2,078 | 2,052 | |
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 | $ 1,067 | $ 1,049 |
CONSOLIDATED BALANCE SHEET CO_6
CONSOLIDATED BALANCE SHEET COMPONENTS - Other assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Dec. 31, 2018 | Mar. 31, 2019 | |
Investment [Line Items] | |||
Asset Impairment Charges | $ 800 | ||
Deferred sales commissions, non-current portion | 3,085 | $ 3,130 | |
Investment in privately held company | 750 | 750 | |
Other | 420 | 407 | |
Total other assets | $ 4,255 | $ 4,287 | |
Convertible Note [Member] | |||
Investment [Line Items] | |||
Convertible note | $ 1,500 |
CONSOLIDATED BALANCE SHEET CO_7
CONSOLIDATED BALANCE SHEET COMPONENTS - Deferred Commission Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Capitalized Contract Cost [Roll Forward] | ||
Beginning balance | $ 6,256 | $ 6,019 |
Recognized | (1,519) | (3,018) |
Additions | 1,656 | 3,084 |
Total deferred sales commission | 6,393 | 6,085 |
Current portion | 3,263 | 3,100 |
Non-current portion | $ 3,130 | $ 2,985 |
Deferred commission expense expected to be recognized over next twelve months (percent) | 51.00% |
CONSOLIDATED BALANCE SHEET CO_8
CONSOLIDATED BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Accrued Liabilities, Current [Abstract] | |||
Accrued compensation | $ 6,064 | $ 7,492 | |
Accrued expenses and other liabilities | 1,081 | 1,169 | |
Warranty liability, current portion | 245 | 276 | $ 217 |
Total accrued liabilities | $ 7,390 | $ 8,937 |
CONSOLIDATED BALANCE SHEET CO_9
CONSOLIDATED BALANCE SHEET COMPONENTS - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Movement in Deferred Revenue [Roll Forward] | |||
Beginning balance | $ 77,261 | $ 67,040 | |
Recognized | (12,531) | (10,701) | |
Additions | 14,278 | 11,539 | |
Total deferred revenue | 79,008 | 67,878 | |
Current portion | 39,681 | 33,885 | $ 38,786 |
Non-current portion | $ 39,327 | $ 33,993 | $ 38,475 |
Deferred revenue expected to be recognized over next 12 months (percent) | 50.00% | ||
Revenue, Remaining Performance Obligation, Amount | $ 79,800 | ||
Contracted-but-not-recognized Revenue Expected to be Recognized over Next Twelve Months | 51.00% |
CONSOLIDATED BALANCE SHEET C_10
CONSOLIDATED BALANCE SHEET COMPONENTS - Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Beginning balance | $ 615 | $ 577 | |
Charges to operations | 217 | 126 | |
Obligations fulfilled | (230) | (153) | |
Changes in existing warranty | (14) | (4) | |
Total product warranties | 588 | 546 | |
Current portion | 245 | 217 | $ 276 |
Non-current portion | $ 343 | $ 329 |
DEBT (Details)
DEBT (Details) | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2019 | Mar. 31, 2017 | Jan. 31, 2016 | Mar. 31, 2019USD ($) | Mar. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Expiration Period | 2 years | 2 years | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Required liquidity ratio | 1.25 | ||||
Required 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 | ||||
Debt, current | $ 20,000,000 | ||||
Revolving Credit Facility | Weighted Average | |||||
Debt Instrument [Line Items] | |||||
Interest rate during the period | 4.19% | 3.28% | |||
Revolving Credit Facility | LIBOR Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Revolving Credit Facility | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Revolving Credit Facility | LIBOR Rate option 1 | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Revolving Credit Facility | Prime Rate option 1 | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Revolving Credit Facility | LIBOR Rate option 2 | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Revolving Credit Facility | Prime Rate option 2 | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% |
LEASES, COMMITMENTS AND CONTI_3
LEASES, COMMITMENTS AND CONTINGENCIES - Lease narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for operating lease liabilities | $ 640 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 4,327 |
Weighted-average remaining lease term | 4 years |
Weighted-average discount rate | 5.43% |
Variable Lease, Cost | $ 200 |
Operating lease not yet commenced | $ 500 |
Operating lease not yet commenced, term of contract | 2 years |
Finance lease, weighted average remaining lease term | 4 years |
LEASES, COMMITMENTS AND CONTI_4
LEASES, COMMITMENTS AND CONTINGENCIES - Operating Leases and Purchase Commitments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 (remaining nine months) | $ 858 |
2020 | 1,124 |
2021 | 1,101 |
2022 | 948 |
2023 | 445 |
Total minimum lease payments | 4,476 |
Less: amount representing interest | 463 |
Total operating lease liabilities | 4,013 |
Operating lease liabilities, current | 927 |
Operating lease liabilities, non-current | $ 3,086 |
LEASES, COMMITMENTS AND CONTI_5
LEASES, COMMITMENTS AND CONTINGENCIES Finance Lease (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Finance Lease Liabilities, Payment Due [Abstract] | |
2019 (remaining nine months) | $ 138 |
2020 | 182 |
2021 | 179 |
2022 | 162 |
2023 | 83 |
Total | 744 |
Finance Lease, Liability, Current | 183 |
Finance Lease, Liability, Noncurrent | $ 561 |
LEASES, COMMITMENTS AND CONTI_6
LEASES, COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2018lawsuitofficer | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Aug. 31, 2018USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Rent expense | $ 0.5 | $ 0.5 | |||
Number of class action lawsuits filed | lawsuit | 3 | ||||
Inventories | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Amount of manufacturing commitment | 5.2 | $ 5 | |||
Commitments | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Minimum purchase commitment | 11.7 | ||||
Remaining purchase commitment | $ 9.9 | ||||
Shareholder Class Action | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Number of Company officers named in lawsuits | officer | 2 |
LEASES, COMMITMENTS AND CONTI_7
LEASES, COMMITMENTS AND CONTINGENCIES Future minimum rental payments under operating and finance leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 1,562 |
2020 | 1,082 |
2021 | 1,071 |
2022 | 987 |
2023 | 445 |
Total | 5,147 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | 176 |
2020 | 171 |
2021 | 169 |
2022 | 162 |
2023 | 83 |
Total | $ 761 |
STOCKHOLDERS' EQUITY - Common S
STOCKHOLDERS' EQUITY - Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||
Total reserved shares of common stock for future issuance | 21,296,156 | |
Employee Stock Options and Restricted Stock Units | ||
Class of Stock [Line Items] | ||
Options and Restricted Stock Units issued and outstanding | 7,603,830 | |
2014 Equity Incentive Plan | ||
Class of Stock [Line Items] | ||
Shares reserved for issuance under share-based compensation plan | 11,880,866 | 9,498,884 |
Employee Stock Purchase Plan | ||
Class of Stock [Line Items] | ||
Shares reserved for issuance under share-based compensation plan | 1,811,460 |
STOCKHOLDERS' EQUITY - Stock Re
STOCKHOLDERS' EQUITY - Stock Repurchase Program (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 38 Months Ended | ||||
Jul. 31, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Feb. 29, 2016 | |
Equity [Abstract] | |||||||
Amount authorized under stock repurchase program | $ 10,000,000 | ||||||
Stock repurchase program expiration date | Jun. 30, 2020 | Jun. 30, 2018 | |||||
Additional amount authorized for repurchase | $ 20,000,000 | ||||||
Number of shares repurchased in period | 0 | 0 | 2,469,978 | ||||
Value of shares repurchased in period | $ 10,600,000 | ||||||
Average cost of repurchased shares (in usd per share) | $ 4.29 | ||||||
Remaining amount available for repurchases under the program | $ 9,400,000 | $ 9,400,000 |
STOCK-BASED COMPENSATION - Equi
STOCK-BASED COMPENSATION - Equity Incentive Plan (Details) - 2014 Equity Incentive Plan - shares | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase to shares of common stock reserved for issuance | 2,793,380 | 2,793,380 | |
Shares reserved for issuance under share-based compensation plan | 11,880,866 | 9,498,884 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Shares Available for Grant | ||||
Options granted (shares) | 0 | 0 | ||
Options canceled (shares) | 168,997 | |||
Number of Shares | ||||
Beginning balance (shares) | 3,442,005 | 3,442,005 | ||
Options granted (shares) | 0 | 0 | ||
Options exercised (shares) | (12,495) | |||
Options forfeited (shares) | (168,997) | |||
Ending balance (shares) | 3,260,513 | 3,442,005 | ||
Options Exercisable (shares) | 3,157,548 | |||
Weighted Average Exercise Price | ||||
Beginning balance (in dollars per share) | $ 5.99 | $ 5.99 | ||
Options granted (in dollars per share) | 0 | |||
Options exercised (in dollars per share) | 1.65 | |||
Options forfeited (in dollars per share) | 7.75 | |||
Ending balance (in dollars per share) | 5.92 | $ 5.99 | ||
Options exercisable (in dollars per share) | $ 5.90 | |||
Weighted Average Remaining Contractual Life | ||||
Weighted average remaining contractual life, period start | 4 years 6 months 22 days | 4 years 7 months 10 days | ||
Weighted average remaining contractual life, period end | 4 years 6 months 22 days | 4 years 7 months 10 days | ||
Weighted average life, options exercisable | 4 years 6 months | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value, period start | $ 1,546 | $ 1,546 | ||
Aggregate intrinsic value, period end | 2,534 | $ 1,546 | ||
Aggregate intrinsic value, options exercisable | 2,534 | |||
Total intrinsic value of options exercised | 40 | $ 30 | ||
Total grant-date fair value of options | $ 300 | $ 700 | ||
2014 Equity Incentive Plan | ||||
Shares Available for Grant | ||||
Beginning balance (shares) | 9,498,884 | 9,498,884 | ||
Authorized (shares) | 2,793,380 | 2,793,380 | ||
Options granted (shares) | 0 | |||
Options canceled (shares) | 168,997 | |||
Awards granted (shares) | (812,752) | |||
Awards canceled (shares) | 232,357 | |||
Ending balance (shares) | 11,880,866 | 9,498,884 | ||
Number of Shares | ||||
Options granted (shares) | 0 | |||
Options forfeited (shares) | (168,997) |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Units (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | |
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract] | ||
Payment for shares withheld for tax withholdings on vesting of restricted stock units | $ | $ (243) | $ (1,080) |
Common Stock | ||
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract] | ||
Shares repurchased for tax withholdings on vesting of RSUs | (47,803) | (256,029) |
2014 Equity Incentive Plan | ||
Restricted Stock Units, Number of Shares [Roll Forward] | ||
Awards granted | 812,752 | |
Awards canceled | (232,357) | |
Restricted Stock Units (RSUs) | ||
Restricted Stock Units, Number of Shares [Roll Forward] | ||
Beginning balance | 4,218,964 | |
Awards granted | 812,752 | |
Awards vested | (503,845) | |
Awards canceled | (184,554) | |
Ending balance | 4,343,317 | |
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 | $ 4.35 | |
Awards granted (in dollars per share) | $ / shares | 4 | $ 4.30 |
Awards vested (in dollars per share) | $ / shares | 4.99 | |
Awards canceled (in dollars per share) | $ / shares | 4.49 | |
Ending balance (in dollars per share) | $ / shares | $ 4.20 | |
Aggregate grant date fair value | $ | $ 3,300 | $ 3,700 |
Fair value of shares vested | $ | $ 2,500 | $ 1,300 |
Shares repurchased for tax withholdings on vesting of RSUs | 47,803 | 256,029 |
Payment for shares withheld for tax withholdings on vesting of restricted stock units | $ | $ (200) | $ (1,100) |
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 | |
PBRSUs | 2014 Equity Incentive Plan | Common Stock | ||
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract] | ||
PBRSU to common stock, conversion ratio | 1 | |
Performance-Based Restricted Stock Unit | ||
Restricted Stock Units, Number of Shares [Roll Forward] | ||
Awards vested | (14,014) | (251,037) |
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract] | ||
Shares expected to vest, remainder of year (shares) | 0 | |
Market-Based Restricted Stock Unit | ||
Restricted Stock Units, Number of Shares [Roll Forward] | ||
Awards vested | 0 | (36,625) |
Market-Based Restricted Stock Unit | 2014 Equity Incentive Plan | ||
Restricted Stock Units, Number of Shares [Roll Forward] | ||
Awards granted | 0 | 0 |
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 |
STOCK-BASED COMPENSATION - Empl
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 37.00% | 46.00% | |
Expected volatility, maximum | 46.00% | 48.00% | |
Risk free interest rate, minimum | 2.52% | 1.45% | |
Risk free interest rate, maximum | 2.70% | 1.62% | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance under share-based compensation plan | 1,811,460 | ||
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 | 558,676 | ||
Shares reserved for issuance under share-based compensation plan | 1,811,460 | ||
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 | ||
Minimum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 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 |
STOCK-BASED COMPENSATION - Valu
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - ESPP | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 37.00% | 46.00% |
Expected volatility, maximum | 46.00% | 48.00% |
Risk free interest rate, minimum | 2.52% | 1.45% |
Risk free interest rate, maximum | 2.70% | 1.62% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 months | 6 months |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 1 year | 1 year |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 3,585 | $ 3,671 |
Employee Stock Option | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 274 | 541 |
Unrecognized stock-based compensation expense | $ 200 | |
Period of recognition of unrecognized stock-based compensation expense | 3 months 11 days | |
Restricted Stock Units (RSUs) | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 2,994 | 2,792 |
Unrecognized stock-based compensation expense | $ 14,100 | |
Period of recognition of unrecognized stock-based compensation expense | 1 year 10 months 6 days | |
ESPP | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 317 | 338 |
Unrecognized stock-based compensation expense | $ 800 | |
Period of recognition of unrecognized stock-based compensation expense | 8 months 1 day | |
Performance-Based Restricted Stock Unit | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 200 | |
Market-Based Restricted Stock Unit | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 200 | 200 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 226 | 246 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 1,086 | 1,046 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 926 | 997 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 1,347 | $ 1,382 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net loss | $ (8,652) | $ (7,317) |
Denominator: | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 56,029,568 | 54,332,767 |
Basic and diluted (in dollars per share) | $ (0.15) | $ (0.13) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the diluted per share calculation | 7,917,915 | 8,016,081 |
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 | 7,603,830 | 7,559,655 |
Employee Stock Purchase Plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the diluted per share calculation | 314,085 | 456,426 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ (52) | $ (58) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
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 revenue | $ 33,017 | $ 35,767 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 17,238 | 20,830 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 12,758 | 11,900 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 3,021 | 3,037 |
Geographic Concentration Risk | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 15,600 | $ 19,000 |
SEGMENT INFORMATION - Property,
SEGMENT INFORMATION - Property, Plant, and Equipment by Geographic Region (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 5,328 | $ 5,947 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 4,013 | 4,514 |
People's Republic of China | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 1,135 | 1,269 |
Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 180 | $ 164 |