Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q/A | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'MONTAGE TECHNOLOGY GROUP LTD | ' |
Entity Central Index Key | '0001375514 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 26,476,143 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $41,181 | $21,580 |
Short-term investments | 6,443 | 6,472 |
Accounts receivable, net | 10,413 | 7,903 |
Inventories | 9,830 | 11,116 |
Prepaid expenses and other current assets | 2,591 | 2,000 |
Current deferred tax assets | 343 | 338 |
Total current assets | 70,801 | 49,409 |
Property and equipment, net | 2,459 | 2,284 |
Acquired intangible assets, net | 1,020 | 1,496 |
Deferred tax assets | 330 | 330 |
Deferred offering costs | 3,240 | 283 |
Total assets | 77,850 | 53,802 |
Current liabilities: | ' | ' |
Accounts payable | 5,345 | 3,719 |
Short-term loans | ' | 1,591 |
Accrued liabilities | 11,941 | 9,108 |
Deferred margin, net | 1,545 | 1,200 |
Income tax payable | 1,422 | 261 |
Current deferred tax liabilities | 34 | 34 |
Total current liabilities | 20,287 | 15,913 |
Long-term liabilities | 4,288 | 4,295 |
Total liabilities | 24,575 | 20,208 |
Commitments and contingencies | ' | ' |
Shareholders' equity (deficit): | ' | ' |
Ordinary shares, $0.0125 par value; 26,804,639 shares authorized; 4,403,859 and 4,660,025 issued and outstanding as of December 31, 2012 and September 30, 2013, respectively | 58 | 55 |
Additional paid-in capital | 3,515 | 1,010 |
Accumulated comprehensive income | 2,148 | 1,811 |
Statutory reserves | 740 | 740 |
Accumulated deficit | -7,586 | -24,399 |
Total shareholders' equity (deficit) | -1,125 | -20,783 |
Total liabilities, convertible preferred shares and shareholders' equity (deficit) | 77,850 | 53,802 |
Series A Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares: | ' | ' |
Convertible preferred shares, value | 6,000 | 6,000 |
Series B Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares: | ' | ' |
Convertible preferred shares, value | 17,020 | 17,020 |
Series B-1 Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares: | ' | ' |
Convertible preferred shares, value | 21,048 | 21,048 |
Series B-2 Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares: | ' | ' |
Convertible preferred shares, value | 10,332 | 10,309 |
Pro Forma [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | 41,181 | ' |
Short-term investments | 6,443 | ' |
Accounts receivable, net | 10,413 | ' |
Inventories | 9,830 | ' |
Prepaid expenses and other current assets | 2,591 | ' |
Current deferred tax assets | 343 | ' |
Total current assets | 70,801 | ' |
Property and equipment, net | 2,459 | ' |
Acquired intangible assets, net | 1,020 | ' |
Deferred tax assets | 330 | ' |
Deferred offering costs | 3,240 | ' |
Total assets | 77,850 | ' |
Current liabilities: | ' | ' |
Accounts payable | 5,345 | ' |
Short-term loans | ' | ' |
Accrued liabilities | 11,941 | ' |
Deferred margin, net | 1,545 | ' |
Income tax payable | 1,422 | ' |
Current deferred tax liabilities | 34 | ' |
Total current liabilities | 20,287 | ' |
Long-term liabilities | 4,288 | ' |
Total liabilities | 24,575 | ' |
Commitments and contingencies | ' | ' |
Shareholders' equity (deficit): | ' | ' |
Ordinary shares, $0.0125 par value; 26,804,639 shares authorized; 4,403,859 and 4,660,025 issued and outstanding as of December 31, 2012 and September 30, 2013, respectively | 260 | ' |
Additional paid-in capital | 57,713 | ' |
Accumulated comprehensive income | 2,148 | ' |
Statutory reserves | 740 | ' |
Accumulated deficit | -7,586 | ' |
Total shareholders' equity (deficit) | 53,275 | ' |
Total liabilities, convertible preferred shares and shareholders' equity (deficit) | 77,850 | ' |
Pro Forma [Member] | Series A Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares: | ' | ' |
Convertible preferred shares, value | ' | ' |
Pro Forma [Member] | Series B Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares: | ' | ' |
Convertible preferred shares, value | ' | ' |
Pro Forma [Member] | Series B-1 Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares: | ' | ' |
Convertible preferred shares, value | ' | ' |
Pro Forma [Member] | Series B-2 Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares: | ' | ' |
Convertible preferred shares, value | ' | ' |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Ordinary shares, par value | $0.01 | $0.01 |
Ordinary shares, shares authorized | 26,804,639 | 26,804,639 |
Ordinary shares, shares issued | 4,660,025 | 4,403,859 |
Ordinary shares, shares outstanding | 4,660,025 | 4,403,859 |
Series A Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares, par value | $0.01 | $0.01 |
Convertible Preferred Shares, Shares Authorized | 4,800,000 | 4,800,000 |
Convertible preferred shares, shares issued | 4,800,000 | 4,800,000 |
Convertible preferred shares, shares outstanding | 4,800,000 | 4,800,000 |
Convertible preferred shares, liquidation value | $6,000 | $6,000 |
Series B Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares, par value | $0.01 | $0.01 |
Convertible Preferred Shares, Shares Authorized | 4,681,416 | 4,681,416 |
Convertible preferred shares, shares issued | 4,255,843 | 4,255,843 |
Convertible preferred shares, shares outstanding | 4,255,843 | 4,255,843 |
Convertible preferred shares, liquidation value | 13,092 | 13,092 |
Series B-1 Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares, par value | $0.01 | $0.01 |
Convertible Preferred Shares, Shares Authorized | 4,551,709 | 4,551,709 |
Convertible preferred shares, shares issued | 4,049,276 | 4,049,276 |
Convertible preferred shares, shares outstanding | 4,049,276 | 4,049,276 |
Convertible preferred shares, liquidation value | 16,191 | 16,191 |
Series B-2 Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares, par value | $0.01 | $0.01 |
Convertible Preferred Shares, Shares Authorized | 3,571,514 | 3,571,514 |
Convertible preferred shares, shares issued | 2,839,409 | 2,839,409 |
Convertible preferred shares, shares outstanding | 2,839,409 | 2,839,409 |
Convertible preferred shares, liquidation value | $7,947 | $7,947 |
Pro Forma [Member] | ' | ' |
Ordinary shares, par value | $0.01 | ' |
Ordinary shares, shares authorized | 26,804,639 | ' |
Pro Forma [Member] | Series A Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares, par value | $0.01 | ' |
Convertible Preferred Shares, Shares Authorized | 4,800,000 | ' |
Convertible preferred shares, shares outstanding | ' | ' |
Pro Forma [Member] | Series B Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares, par value | $0.01 | ' |
Convertible Preferred Shares, Shares Authorized | 4,681,416 | ' |
Convertible preferred shares, shares outstanding | ' | ' |
Pro Forma [Member] | Series B-1 Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares, par value | $0.01 | ' |
Convertible Preferred Shares, Shares Authorized | 4,551,709 | ' |
Convertible preferred shares, shares outstanding | ' | ' |
Pro Forma [Member] | Series B-2 Convertible Preferred Shares [Member] | ' | ' |
Convertible preferred shares, par value | $0.01 | ' |
Convertible Preferred Shares, Shares Authorized | 3,571,514 | ' |
Convertible preferred shares, shares outstanding | ' | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statement of Operations and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $30,056 | $20,601 | $75,448 | $54,538 |
Cost of revenues: | -10,907 | -7,683 | -27,496 | -21,374 |
Gross profit | 19,149 | 12,918 | 47,952 | 33,164 |
Operating expenses: | ' | ' | ' | ' |
Research and development | -6,623 | -3,835 | -19,096 | -12,304 |
Sales, general and administrative | -3,880 | -2,382 | -10,681 | -5,614 |
Total operating expenses | -10,503 | -6,217 | -29,777 | -17,918 |
Income from operations | 8,646 | 6,701 | 18,175 | 15,246 |
Interest income, net | 202 | 71 | 504 | 75 |
Other income (expense), net | -70 | 20 | -157 | 253 |
Income before income tax expenses | 8,778 | 6,792 | 18,522 | 15,574 |
Provision for income tax | -737 | -427 | -1,709 | -980 |
Net income | 8,041 | 6,365 | 16,813 | 14,594 |
Other comprehensive income | ' | ' | ' | ' |
Cumulative translation adjustments | 130 | -36 | 337 | -93 |
Comprehensive income | 8,171 | 6,329 | 17,150 | 14,501 |
Accretion for Series B-2 convertible preferred shares | ' | -14 | -23 | -42 |
Allocation to participating preferred shares and restricted shares | -6,460 | -5,194 | -13,651 | -12,038 |
Net income attributable to ordinary shareholders-Basic | 1,581 | 1,157 | 3,139 | 2,514 |
Undistributed earnings re-allocated to ordinary shareholders | 455 | 397 | 926 | 847 |
Net income attributable to ordinary shareholders-Diluted | $2,036 | $1,554 | $4,065 | $3,361 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.34 | $0.27 | $0.68 | $0.58 |
Diluted | $0.31 | $0.24 | $0.62 | $0.53 |
Weighted-average shares used in computing net income per share: | ' | ' | ' | ' |
Basic | 4,658,034 | 4,321,144 | 4,618,302 | 4,303,135 |
Diluted | 6,527,371 | 6,391,252 | 6,557,368 | 6,295,066 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $16,813 | $14,594 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,915 | 644 |
Share-based compensation | 2,462 | 682 |
Deferred income taxes | 2 | 61 |
Inventory write-downs | 414 | 204 |
Exchange loss (gain) | 320 | -61 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -2,510 | -1,492 |
Inventories | 957 | -381 |
Prepaid expenses and other current assets | -488 | 7 |
Accounts payable | 1,615 | -2,717 |
Income tax payable | 1,154 | 922 |
Deferred margin, net | 345 | -4,139 |
Other payables and accruals | 103 | -2,255 |
Net cash provided by operating activities | 23,102 | 6,069 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -1,160 | -1,509 |
Purchase of intangible assets | -484 | -950 |
Purchase of short-term investments | -33,190 | -6,398 |
Proceeds from maturities of short-term investments | 33,453 | 3,154 |
Net cash used in investing activities | -1,381 | -5,703 |
Cash flows from financing activities: | ' | ' |
Proceeds from exercise of options | 64 | 12 |
Proceeds from early exercise of options | 11 | ' |
Proceeds from short-term loans | ' | 1,578 |
Repayment for short-term loans | -1,591 | -2,056 |
Cash paid for initial public offering cost | -421 | ' |
Net cash used in financing activities | -1,937 | -466 |
Effect of exchange rate changes on cash | -183 | -44 |
Net increase (decrease) in cash and cash equivalents | 19,601 | -144 |
Cash and cash equivalents at beginning of period | 21,580 | 23,343 |
Cash and cash equivalents at end of period | 41,181 | 23,199 |
Supplemental Cash Flow Information | ' | ' |
Income taxes paid | 554 | ' |
Interest paid | 10 | 79 |
Non-cash investing and financing activities | ' | ' |
Accounts payable for acquisition of property and equipment | 59 | 70 |
Vesting of ordinary shares issued for early exercised options | 5 | 9 |
Accrued initial public offering cost | $2,676 | ' |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Organization and Summary of Significant Accounting Policies | ' | ||||||||||||||||
1. Organization and Summary of Significant Accounting Policies | |||||||||||||||||
a. Organization | |||||||||||||||||
Montage Technology Group Limited (the “Company”) was incorporated as an international business company with limited liability under International Business Companies Act, 1984 of the British Virgin Islands on March 29, 2004 and continued to, and registered in the Cayman Islands as an exempted company on April 24, 2006. The Company conducts business in several territories including China, Hong Kong, Taiwan and the United States through its wholly owned subsidiaries. | |||||||||||||||||
The Company is a global fabless provider of analog and mixed signal semiconductor solutions currently addressing the home entertainment and cloud computing markets. The foundation of its technology platform is the Company’s ability to design high performance, low power semiconductors by using its proprietary building blocks which include radio frequency and analog front end solutions, digital signal processors and high speed interfaces. In the home entertainment market, the Company’s technology platform enables it to design highly integrated solutions with customized software for set-top boxes. The Company’s solutions optimize signal processing performance under demanding operating conditions typically found in emerging market environments. In the cloud computing market, the Company offers high performance, low power memory interface solutions that enable memory intensive server applications. | |||||||||||||||||
b. Initial Public Offering | |||||||||||||||||
On October 1, 2013, the Company completed an initial public offering (the “Offering”) of 8,165,000 shares of ordinary shares at a price of $10.00 per share, including 5,325,000 additional ordinary shares issued by the Company and 2,840,000 shares sold by existing shareholders. Accordingly, the Company received net proceeds of $49.5 million from the issuance of the ordinary shares in the offering after deducting underwriting discounts and commissions of $3.7 million and excluding other offering expenses of approximately $3.2 million. | |||||||||||||||||
Upon completion of the initial public offering on October 1, 2013, the Series A, B, B1 and B2 Convertible Preferred Shares automatically converted into 16,163,598 ordinary shares and the related carrying amount were reclassified as additional paid-in capital. As these transactions occurred after September 30, 2013, they are not reflected in the unaudited condensed consolidated financial statements as of and for the three month period ended September 30, 2013. See Note 19 for discussion of the unaudited pro forma information. | |||||||||||||||||
c. Basis of Presentation | |||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All intercompany transactions have been eliminated upon consolidation. The interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”), Form 10-Q and Article 10 of SEC Regulation S-X. | |||||||||||||||||
The unaudited condensed consolidated financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to state fairly the Company’s unaudited consolidated financial position at September 30, 2013 and 2012. The results of operations for the nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for future quarters or the full year. | |||||||||||||||||
These unaudited interim condensed financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. Therefore, these unaudited interim condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related footnotes for the year ended December 31, 2012, included in the Company’s prospectus filed with the SEC in September 2013 (“Company Prospectus”). | |||||||||||||||||
All share-related disclosures, including par value, share price, number of ordinary shares, preferred shares, share options, restricted shares, warrants, exercise prices of share options, restricted shares, related fair value per share, and net income per share calculations, have been recast to reflect the 2.5-for-1 reverse share split (See Note 17) for all periods presented. | |||||||||||||||||
d. Use of Estimates | |||||||||||||||||
The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of net revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements mainly include share-based compensation, allowance for doubtful accounts, inventory write-down, allowance for deferred tax assets, provision for uncertain tax positions, and estimated useful lives of equipment and intangible assets. | |||||||||||||||||
e. Significant Accounting Policies | |||||||||||||||||
There has been no material change to the Company’s significant accounting policies disclosed in the Company’s consolidated financial statements for the year ended December 31, 2012 included in the Company Prospectus filed with the SEC in September 2013. | |||||||||||||||||
f. Recent Accounting Pronouncements | |||||||||||||||||
There has been no material change to Recent Accounting Pronouncements from those disclosed in the Company’s consolidated financial statements for the year ended December 31, 2012 included in the Prospectus filed with the SEC in September 2013. | |||||||||||||||||
g. Concentration of Credit Risks | |||||||||||||||||
Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. | |||||||||||||||||
As of September 30, 2013, substantially all of the Company’s cash and cash equivalents and short-term investments were held by reputable financial institutions in the jurisdictions where the Company and its subsidiaries are located. The Company believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Company has not experienced any losses on its deposits of cash and cash equivalents, and short-term investments. | |||||||||||||||||
The following table summarizes the percentage of the Company’s revenue and accounts receivable represented by distributors and customers with balances over 10% of total revenue: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Revenue | 2012 | 2013 | 2012 | 2013 | |||||||||||||
Company A | 58 | % | 73 | % | 43 | % | 71 | % | |||||||||
Company B | 13 | % | 9 | % | 21 | % | 8 | % | |||||||||
Accounts receivable | December 31, 2012 | September 30, 2013 | |||||||||||||||
Company A | 89 | % | 79 | % | |||||||||||||
The Company establishes credit limits for each distributor and customer and reviews such limits prior to product shipment. The Company did not experience significant credit loss from its distributors and customers during the periods presented. |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||
2. Net Income Per Share | |||||||||||||||||
The following shows the computation of basic and diluted net income per ordinary share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator | |||||||||||||||||
Net income | $ | 8,041 | $ | 6,365 | $ | 16,813 | $ | 14,594 | |||||||||
Less: Accretion for preferred shares | — | (14 | ) | (23 | ) | (42 | ) | ||||||||||
Less: Allocation of net income to participating preferred shares and restricted shares | (6,460 | ) | (5,194 | ) | (13,651 | ) | (12,038 | ) | |||||||||
Numerator for basic calculation | 1,581 | 1,157 | 3,139 | 2,514 | |||||||||||||
Undistributed earnings re-allocated to ordinary share holders | 455 | 397 | 926 | 847 | |||||||||||||
Numerator for diluted calculation | $ | 2,036 | $ | 1,554 | $ | 4,065 | $ | 3,361 | |||||||||
Denominator | |||||||||||||||||
Denominator for basic calculation, weighted-average number of shares of ordinary share outstanding | 4,658,034 | 4,321,144 | 4,618,302 | 4,303,135 | |||||||||||||
Dilutive effect of share option | 1,860,216 | 2,070,108 | 1,926,644 | 1,991,931 | |||||||||||||
Dilutive effect of restricted shares and awards | 9,121 | — | 12,422 | — | |||||||||||||
Denominator for diluted calculation | 6,527,371 | 6,391,252 | 6,557,368 | 6,295,066 | |||||||||||||
Net income per share | |||||||||||||||||
Basic | $ | 0.34 | $ | 0.27 | $ | 0.68 | $ | 0.58 | |||||||||
Diluted | $ | 0.31 | $ | 0.24 | $ | 0.62 | $ | 0.53 | |||||||||
The Company’s preferred shares were participating securities and as such were included in the calculation of basic net income per share under the two-class method pursuant to ASC 260-10-45-60A and 60-B for all periods presented. In addition, the Company granted 317,120 restricted shares in April 2013 with non-forfeitable dividend rights and the holders of these restricted shares are entitled to cash dividends with respect to the restricted shares subject to the award even though such shares are not vested (Note 12). Therefore, pursuant to ASC 260-10-45-61A, these restricted shares are participating securities and related unvested restricted shares are included in the computation of basic net income per share under the two-class method. | |||||||||||||||||
For the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2013 and 2012, under the two-class method for the calculation of net income per share, the noncumulative dividends of 8% of the original issuance price for each series of preferred share were $865, $865, $2,594 and $2,594, respectively, whereas the remaining undistributed earnings attributable to preferred shares on as-if converted basis and restricted shares were $5,595, $4,329, $11,057 and $9,444, respectively. | |||||||||||||||||
For the diluted net income per share calculation, the net income allocated to participating preferred shares and unrestricted shares decreased by $455, $397, $926 and $847, respectively for the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2013 and 2012, due to the inclusion of incremental shares for share options and restricted shares which have a dilutive impact on the basic net income per share. | |||||||||||||||||
The following table sets forth potential shares of ordinary shares that are not included in the calculation of diluted net income per share because including them would be anti-dilutive as of the end of each period presented: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Convertible preferred shares | 16,163,598 | 16,163,598 | 16,163,598 | 16,163,598 | |||||||||||||
The following table sets forth potential shares of ordinary shares that are not included in the calculation of diluted net income per share for the corresponding periods because the number of shares calculated based on the assumed proceeds from exercise of the equity awards and the weighted average fair value of the Company’s ordinary shares is higher than the number of shares assumed to be issued under the awards: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Equity awards outstanding | 1,768,960 | 403,520 | 1,726,480 | 417,120 |
Fair_Market_Value_of_Financial
Fair Market Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Market Value of Financial Instruments | ' | ||||||||||||||||
3. Fair Market Value of Financial Instruments | |||||||||||||||||
The carrying amounts reflected in the balance sheet for cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable, accrued expenses and other current liabilities, approximate their fair value due to the short-term nature of these financial instruments. | |||||||||||||||||
The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy as of December 31, 2012 and September 30, 2013: | |||||||||||||||||
Fair value measure at reporting date using | |||||||||||||||||
As of December 31, 2012 | As of | Quoted Prices | Significant | Significant | |||||||||||||
December 31, | in Active Markets | Other | Unobservable | ||||||||||||||
2012 | for Identical Assets | Observable | Inputs | ||||||||||||||
(Level 1) | Inputs (Level 2) | (Level 3) | |||||||||||||||
Cash | $ | 12,175 | $ | 12,175 | $ | — | $ | — | |||||||||
Time deposit within the maturity term below 3 months | 9,405 | 9,405 | — | — | |||||||||||||
Short-term investments | 6,472 | — | 6,472 | — | |||||||||||||
Total | $ | 28,052 | $ | 21,580 | $ | 6,472 | $ | — | |||||||||
Fair value measure at reporting date using | |||||||||||||||||
As of September 30, 2013 | As of | Quoted Prices | Significant | Significant | |||||||||||||
September 30, | in Active Markets | Other | Unobservable | ||||||||||||||
2013 | for Identical Assets | Observable | Inputs | ||||||||||||||
(Level 1) | Inputs (Level 2) | (Level 3) | |||||||||||||||
Cash | $ | 27,414 | $ | 27,414 | $ | — | $ | — | |||||||||
Bank investment product readily convertible within the maturity term below 3 months | 9,759 | — | 9,759 | — | |||||||||||||
Time deposit with the maturity term below 3 months | 4,008 | 4,008 | — | — | |||||||||||||
Time deposit with the maturity term greater than 3 months but less than 1 year | 50 | 50 | — | — | |||||||||||||
Short-term investments | 6,393 | — | 6,393 | — | |||||||||||||
Total | $ | 47,624 | $ | 31,472 | $ | 16,152 | $ | — | |||||||||
As of September 30, 2013 and December 31, 2012, the investments measured at fair value by level 2 are issued by banks with variable interest rates indexed to performance of underlying assets. Since these investments’ maturity dates are within one year, they are classified as short-term investments. To estimate the fair value of the short-term investments, the Company refers to the quoted rate of return provided by the bank at the end of each period using the discounted cash flow method. The Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. The Company recorded in the unaudited condensed consolidated statements of operations and comprehensive income a change in the fair value of short-term investments in the amount of $182, $43, $344, and $63 for the three months and nine months ended September 30, 2013, and 2012, respectively. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
4. Inventories | |||||||||
Inventories consist of the following: | |||||||||
As of | As of | ||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Work in progress | $ | 5,491 | $ | 3,665 | |||||
Finished goods | 4,339 | 7,451 | |||||||
$ | 9,830 | $ | 11,116 | ||||||
During the second quarter of 2013, in order to prepare for the implementation of a new ERP system, management performed a detailed review of the production processes of the Company’s products and concluded that, upon completion of the final quality testing and prior to packing for shipping, those products should be included in finished goods as they are ready for sale. Previously, products were not classified as finished goods until they were fully packed for shipment. Accordingly, the Company has revised the classification of work in progress and finished goods by stage of production to include completed but not packaged products as finished goods. Management considers that both approaches of segregating work in progress and finished goods have their basis. To ensure the disclosure of inventory is consistent for each of the periods presented, the Company has revised the classification of inventory by stage of completion by now including $5,464 and $7,373 in finished goods as of December 31, 2012, respectively that was previously included in work in progress. This revision had no impact on total inventory balances. | |||||||||
For the three months and nine months ended September 30, 2013, and 2012, the Company recorded inventory write-downs of $109, $414, $23, and $204, respectively, due to excess and obsolete inventory and lower of cost or market markdown. As of September 30, 2013 and December 31, 2012, the Company has a total inventory reserve balance of $ 1,321, and $2,406, respectively. Once the write-down is recorded, it establishes a new cost basis and is not subsequently reversed. |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Prepaid Expenses and Other Current Assets | ' | ||||||||
5. Prepaid Expenses and Other Current Assets | |||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
As of | As of | ||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Value-added tax recoverable | $ | 603 | $ | 486 | |||||
Prepaid license fees | 141 | 294 | |||||||
Prepayment for material purchase | 173 | 170 | |||||||
Rental deposits | 400 | 321 | |||||||
Value-added tax refundable on export sales | 489 | 306 | |||||||
Other prepaid expenses and other current assets | 785 | 423 | |||||||
$ | 2,591 | $ | 2,000 | ||||||
Property_and_Equipment_Net
Property and Equipment, Net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment, Net | ' | ||||||||
6. Property and Equipment, Net | |||||||||
Property and equipment, net consist of the following: | |||||||||
As of | As of | ||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Office and other equipment | $ | 3,862 | $ | 3,193 | |||||
Furniture and fixtures | 663 | 475 | |||||||
Leasehold improvements | 1,665 | 1,354 | |||||||
6,190 | 5,022 | ||||||||
Less: accumulated depreciation and amortization | (3,731 | ) | (2,738 | ) | |||||
$ | 2,459 | $ | 2,284 | ||||||
The depreciation expense of property and equipment for the three months ended September 30, 2013 and 2012 and nine months ended September 30, 2013 and 2012 was $ 310, $207, $929 and $ 482, respectively. |
Acquired_Intangible_Assets_Net
Acquired Intangible Assets, Net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||
Acquired Intangible Assets, Net | ' | ||||||||
7. Acquired Intangible Assets, Net | |||||||||
Acquired intangible assets, net consist of the following: | |||||||||
As of | As of | ||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Assembled workforce (1) | $ | 1,900 | $ | 1,900 | |||||
Technology Licenses | 116 | 150 | |||||||
Software | 265 | — | |||||||
Montage Macao License (2) | 129 | — | |||||||
Less: accumulated amortization | (1,390 | ) | (554 | ) | |||||
$ | 1,020 | $ | 1,496 | ||||||
For the three months ended September 30, 2013 and 2012 and nine months ended September 30, 2013 and 2012, the Company recorded amortization expense of $324, $124, $986 and $162, respectively. | |||||||||
-1 | Assembled workforce | ||||||||
On August 23, 2012, Montage Technology Hong Kong Limited, a wholly owned subsidiary of the Company, entered into agreements with a third party to acquire a research and development workforce, intellectual property (“IP”) and computers and office equipment for total cash consideration of $2,016. The acquisition has been completed in September 2012. The Company determined that the acquisition of research and development workforce, IP and computers and office equipment should be accounted for an asset acquisition as the group of assets acquired by the Company did not meet the definition of a business as pursuant to ASC 805. The Company allocated the total consideration to the acquired research and development workforce, IP (which was obsolete) and computers and office equipment with the amount of $1,900, $0 and $116, respectively, on the acquisition date. The research and development workforce is recorded as assembled workforce and amortized on a straight line basis over 18 months as the Company expected the acquired workforce to provide economic benefit to the Company during this period based on the Company’s prior experience in developing research and development workforce and conducting research and development activities. | |||||||||
-2 | Montage Macao license | ||||||||
The Company entered into a memorandum of understanding to acquire Sonoma Commercial Offshore, Ltd, a Macao Offshore Company, which was subsequently renamed Montage Technology Commercial Offshore Limited (“Montage Macao”), to be the principal entity in the Company’s international corporate structure. The acquisition of Montage Macao was completed in May 2013 when Montage Macao completed its registration with the Macao government and the Company took control over Montage Macao. Montage Macao did not have any assets or liabilities other than a qualification license as a commercial offshore entity in Macao. The Company determined that the acquisition of Montage Macao shall be accounted for as an asset acquisition of its commercial offshore license qualification in Macao as it did not meet the definition of a business as pursuant to ASC 805-20-20 and ASC 805-10-55-4 through 805-10-55-9. The useful life of the commercial offshore license qualification in Macao is indefinite as long as the Company maintains its offshore business in Macao. Therefore, the acquisition cost of $129 for the commercial offshore license is not amortized and shall be tested for impairment annually or more frequently if events or changes in circumstances indicate that the commercial offshore license might be impaired pursuant to ASC 350-30-35-18 through 35-20. |
ShortTerm_Loans
Short-Term Loans | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Short-Term Loans | ' |
8. Short-Term Loans | |
There were no short-term bank loans outstanding September 30, 2013. The short-term bank loans outstanding as of December 31, 2012 carried a weighted average interest rate of 5.88%, per annum. The borrowings were repayable in one year of their respective draw-down date. Proceeds from short-term bank borrowings were for working capital purposes. None of the short-term bank loans bear financial covenants or restrictions. | |
Short-term bank loans as of December 31, 2012 were all denominated in RMB. |
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
9. Accrued Liabilities | |||||||||
Accrued liabilities consist of the following: | |||||||||
As of | As of | ||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Government funding for research and development projects (1) | $ | 3,893 | $ | 3,055 | |||||
Accrued employee compensation and other employee expenses | 3,504 | 4,505 | |||||||
Accrued research and development expenses | — | 28 | |||||||
Advances from customers | 267 | 230 | |||||||
Accrued warranty | 187 | 149 | |||||||
Accrued professional service fee | 3,484 | 497 | |||||||
Proceeds received for early exercised options | 8 | — | |||||||
Other accrued liabilities | 598 | 644 | |||||||
$ | 11,941 | $ | 9,108 | ||||||
-1 | For the three months ended September 30, 2013 and 2012 and nine months ended September 30, 2013 and 2012, the Company recorded nil, $1,025, $396, and $1,025 government funding as a deduction to expense, respectively. The Company has not recorded any reduction to the carrying value of depreciable assets. As of December 31, 2012 and September 30, 2013, the Company has recorded an accrued liability for cash funding received from the PRC government of $3,055, and $3,893, respectively, because the government had not commenced its review of the research and development projects qualified for funding at the end of the respective periods. |
Deferred_Margin_Net
Deferred Margin, Net | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Revenue Recognition [Abstract] | ' | ||||||||||||||||
Deferred Margin, Net | ' | ||||||||||||||||
10. Deferred Margin, Net | |||||||||||||||||
Deferred margin, net consists of the following: | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Deferred revenue | $ | 20,146 | $ | 15,878 | |||||||||||||
Deferred cost of revenue | (18,601 | ) | (14,678 | ) | |||||||||||||
$ | 1,545 | $ | 1,200 | ||||||||||||||
The deferred revenue and deferred cost of revenue on sales to distributor activities for the nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance at the beginning of the period | $ | 1,200 | $ | 5,147 | |||||||||||||
Revenue deferred upon shipment to distributors | 33,847 | 27,734 | |||||||||||||||
Cost of sales deferred upon shipments to distributors | (26,952 | ) | (18,509 | ) | |||||||||||||
Revenue recognized upon resale from distributors to end customers | (29,126 | ) | (26,295 | ) | |||||||||||||
Cost of sales recognized upon resale from distributors to end customers | 23,029 | 13,126 | |||||||||||||||
Price adjustments to distributors | (453 | ) | (195 | ) | |||||||||||||
Balance at the end of the period | $ | 1,545 | 1,008 | ||||||||||||||
The following table shows reconciliation from revenue recognized upon resale from distributors to end customers as included in the above table to revenue recorded in the consolidated statements of operations and comprehensive income for the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue recognized upon resale from distributors to end customers (through deferred revenue) | $ | 12,063 | $ | 7,842 | $ | 29,126 | $ | 26,295 | |||||||||
Revenue recognized upon resale from LQW to end customers (recorded directly in revenue)* | 15,136 | 9,171 | 38,115 | 17,998 | |||||||||||||
Revenue recognized for the Company’s sales directly to end customer | 2,857 | 3,588 | 8,207 | 10,245 | |||||||||||||
Total | $ | 30,056 | $ | 20,601 | $ | 75,448 | $ | 54,538 | |||||||||
* | LQW has been a distributor for the Company’s products since October 2011. The Company is entitled to bill only a portion of the total sale price at the time of shipment (deferred revenue), with the remainder billed upon sale by LQW to the end customer. The portion of the total sale price that the Company is not entitled to bill at the time of shipment to LQW is recorded directly in revenue upon sale by LQW to the end customers. |
Convertible_Preferred_Shares
Convertible Preferred Shares | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||
Convertible Preferred Shares | ' | ||||||||||||||||||||||||||
11. Convertible Preferred Shares | |||||||||||||||||||||||||||
Convertible preferred shares consisted of the following as of September 30, 2013: | |||||||||||||||||||||||||||
Convertible | Par | Subscription | Shares | Carrying | Liquidation | ||||||||||||||||||||||
Value | Price | Amount | Value | ||||||||||||||||||||||||
Per | |||||||||||||||||||||||||||
Preferred Shares | Issuance date | Share | Per Share | Authorized | Outstanding | ||||||||||||||||||||||
Series A | April 23, 2004 and | ||||||||||||||||||||||||||
August 31, 2004 | $ | 0.0125 | $ | 1.25 | 4,800,000 | 4,800,000 | $ | 6,000 | $ | 6,000 | |||||||||||||||||
Series B | 19-Jun-06 | 0.0125 | 3.2263 | 4,681,416 | (1) | 3,325,843 | 13,949 | 10,730 | |||||||||||||||||||
Series B issued upon exercise of warrant | December 20, 2007 | 0.0125 | 2.54 | 930,000 | 3,071 | 2,362 | |||||||||||||||||||||
Series B-1 | 18-May-07 | 0.0125 | 3.9985 | 4,551,709 | 4,049,276 | 21,048 | 16,191 | ||||||||||||||||||||
Series B-2 | 8-Oct-09 | ||||||||||||||||||||||||||
22-Oct-09 | |||||||||||||||||||||||||||
30-Jun-10 | 0.0125 | 2.799 | (2) | 3,571,514 | 2,839,409 | 10,332 | 7,947 | ||||||||||||||||||||
17,604,639 | 15,944,528 | $ | 54,400 | $ | 43,230 | ||||||||||||||||||||||
-1 | Authorized shares for Series B convertible preferred shares issued on June 19, 2006 also included shares authorized for Series B convertible preferred shares issued upon exercise of warrant on December 20, 2007. | ||||||||||||||||||||||||||
-2 | Pursuant to the Company’s Amended and Restated Memorandum and Articles dated September 2009, the subscription price for Series B-2 convertible preferred shares represents the weighted average price of the shares issued in October 2009 and June 2010, respectively. | ||||||||||||||||||||||||||
The Company’s Board of Directors is authorized to determine the rights of each offering of convertible preferred shares including, among other terms, dividend rights, voting rights, conversion rights, redemption prices and liquidation preferences, if any, subject to the limitations of applicable laws, regulations and its charter. The following summarizes the terms of each series of convertible preferred shares: | |||||||||||||||||||||||||||
Conversion Rights | |||||||||||||||||||||||||||
Each share of Series A, Series B, Series B-1 and Series B-2 is convertible, at the holder’s option, into such number of fully paid and nonassessable ordinary shares as is determined by dividing the applicable original issuance price by the conversion price which is the same as the original issue price. | |||||||||||||||||||||||||||
In the event of the issuance of additional ordinary shares, subject to certain exclusions, at a price per share less than the conversion price for any series of convertible preferred shares in effect on the date of such issuance, the conversion price for that series will be adjusted based on a weighted average anti-dilution formula. The conversion price is also subject to adjustment based on certain other anti-dilution provisions. Each convertible preferred share will automatically convert into ordinary shares at its then effective conversion rate immediately upon the closing of an initial public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, covering the offer and sale of ordinary shares with gross proceeds to the Company of not less than $50 million at a price per share of at least $5.00 (“Qualified IPO”). The Company is required to reserve and keep available, out of its authorized but unissued ordinary shares, 16,163,598 shares for the conversion of convertible preferred shares. | |||||||||||||||||||||||||||
In connection with the issuance of Series B-2 upon the exercise in full of all the Series B-2 warrants, the weighted average price for Series B-2 originally issued in October 2009 and Series B-2 issued upon exercise of warrant in June 2010 was $2.7990 per share, which was less than the original conversion price of Series B issued on June 19, 2006 and Series B-1, the conversion price for Series B issued on June 19, 2006 and Series B-1 was adjusted to $3.1715 and $3.8450 per share, respectively, on August 18, 2010. After such adjustment, each Series B issued on June 19, 2006 and Series B-1 share is convertible into approximately 1.0173 and 1.040 ordinary shares, respectively. | |||||||||||||||||||||||||||
Dividends | |||||||||||||||||||||||||||
The holders of each series of convertible preferred shares are entitled to receive noncumulative dividends per annum when and if declared by the Board of Directors. The Series A, Series B, Series B-1 and Series B-2 convertible preferred shares are entitled to dividends at 8% of the original issuance price per share. After the foregoing dividend payments, if any, have been made in full in a given calendar year, any dividends declared by the Board out of funds legally available shall be shared ratably among the holders of ordinary shares; provided, however, that any non-cash dividends shall be shared ratably among the holders of ordinary and preferred shares on an as-if-converted basis. No dividends have been declared or paid to date. | |||||||||||||||||||||||||||
Liquidation | |||||||||||||||||||||||||||
In the event of any liquidation, dissolution or winding up of the Company, whether voluntarily or involuntary, including a consolidation, merger or acquisition or sale of assets where the beneficial owners of the Company’s ordinary shares and convertible preferred shares own less than a majority of the resulting voting power of the surviving entity, the holders of Series A, Series B, Series B-1 and Series B-2 convertible preferred shares are entitled to receive an amount equal to 100% of the subscription price per share, based on the number of preferred shares plus any declared but unpaid dividends prior to the distribution to the ordinary shares. The remaining assets, if any, shall be distributed among the holders of ordinary shares on a pro rata basis based on the number of shares they hold. | |||||||||||||||||||||||||||
Voting Rights | |||||||||||||||||||||||||||
The holders of each preferred share are entitled to the number of votes equal to the number of ordinary shares into which such preferred shares are converted. | |||||||||||||||||||||||||||
Redemption Rights | |||||||||||||||||||||||||||
The holders of the Company’s Series B and B-1 preferred shares hold redemption rights such that at any time after June 19, 2011, if at least two-thirds of the holders of Series B and B-1 convertible preferred shares, voting together, elect to redeem their shares, the Company shall redeem all Series B and B-1 convertible preferred shares. The holders of the Company’s Series B-2 convertible preferred shares hold redemption rights such that at any time after June 1, 2013, if at least two-thirds of the holders of Series B-2 elect to redeem their shares, the Company shall redeem all Series B-2 convertible preferred shares. The redemption price available to Series B, B-1 and B-2 shall be 130% of subscription price per share, plus all declared and unpaid dividends. | |||||||||||||||||||||||||||
According to the shareholders’ resolution dated August 13, 2013, the first possible redemption dates of the Company’s Series B, B-1 and B-2 preferred shares were amended to January 1, 2014, respectively. | |||||||||||||||||||||||||||
There was no consideration given to the holders of the Series B, B-1 and B2 preferred shares for the modification of the first possible redemption dates. Based on the assessment the Company performed, the modification for the first possible redemption dates was not involved the transfer of wealth between ordinary shares, Series A and Series B, B-1 and B-2 preferred shares as the modification was viewed as a pre-condition agreed by the holders of ordinary and preferred shares for the Company’s initial public offering. | |||||||||||||||||||||||||||
The aggregate amount of redemption for all issued redeemable preferred shares each year for the five years following December 31, 2012 is $48,400, respectively. | |||||||||||||||||||||||||||
Accretion | |||||||||||||||||||||||||||
In accordance with authoritative guidance and consistent with the accounting for Series B, B-1 and B-2 convertible preferred shares, the carrying value of the Series B, B-1 and B-2 convertible preferred shares is adjusted for accretion to the redemption price over the period from the date of issuance to the first possible redemption date using the effective interest rate method. Before August 13, 2013, when the shareholders approved the modification of the first possible redemption dates of the Company’s Series B, B-1 and B-2 to January 1, 2014, the carrying value of the Series B, B-1 and B-2 convertible preferred shares had already been accreted to the redemption price over the period from the date of issuance to the original fist possible redemption date (June 19, 2011 for Series B and B-1 and June 1, 2013 for Series B-2), respectively. The modification of the first possible redemption date has no impact on the accretion to Series B, B1 and B2’s redemption value. | |||||||||||||||||||||||||||
For the three months and nine months ended September 30, 2012 and 2013, the accretion to the carrying value of convertible preferred shares was summarized as follows: | |||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||
Series B-2 | — | $ | 14 | $ | 23 | $ | 42 | ||||||||||||||||||||
Upon completion of the initial public offering of the Company on October 1, 2013, Series A, B, B1and B2 Preferred Shares automatically converted into 16,163,598 ordinary shares. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||||
12. Share-Based Compensation | |||||||||||||||||||||
The Company’s 2006 Share Incentive Plan (“the 2006 Plan”) was adopted in June 2006. The 2006 Plan provides for the issuance of incentive share options (ISOs), nonstatutory share options (NSOs) and restricted share awards (RSAs). NSOs may be granted to employee, directors and consultants, while ISOs may be granted only to employees and RSAs may be granted to employees, directors or non-employees. Share options granted vest over a maximum period of four years and expire ten years from the date of the grant. Share options generally vest over four years, one-quarter on the first anniversary of the date of the grant and monthly thereafter for the remaining three years. RSAs have various vesting periods determined by the plan administrator, and generally vest over four years, with 25% on each of the anniversary of the vesting commence date. As of September 30, 2013 and December 31, 2012, the number of ordinary shares authorized for equity award issuance under the 2006 Plan was 6,566,544, and 6,566,544 shares, respectively. | |||||||||||||||||||||
The Company’s board of directors has approved and adopted a 2013 Performance Incentive Plan, or the 2013 Plan, in connection with the initial public offering. The Company’s shareholders have approved the 2013 Plan, which has become effective upon the completion of the initial public offering. A total of 1,600,000 ordinary shares will be authorized for issuance with respect to awards granted under the 2013 Plan. The share limit will automatically increase on the first trading day in January of each year (commencing with January 2014) by an amount equal to the lesser of (1) 4% of the total number of outstanding shares of our ordinary shares on the last trading day in December in the prior year, (2) 1,000,000 shares, or such lesser number as determined by our board of directors. | |||||||||||||||||||||
Awards under the 2013 Plan may be in the form of incentive or nonqualified share options, share appreciation rights, share bonuses, restricted share and other forms of awards including cash awards. Awards under the plan generally will not be transferable other than by will or the laws of descent and distribution, except that the plan administrator may authorize certain transfers. | |||||||||||||||||||||
Nonqualified and incentive share options may not be granted at prices below the fair market value of the ordinary shares on the date of grant. Incentive share options must have an exercise price that is at least equal to the fair market value of our ordinary shares, or 110% of fair market value of our ordinary shares or incentive share option grants to any 10% owner of our ordinary shares, on the date of grant. These and other awards may also be issued solely or in part for services. Awards are generally paid in cash or shares of our ordinary shares. The plan administrator may provide for the deferred payment of awards and may determine the terms applicable to deferrals. | |||||||||||||||||||||
The 2013 Plan will terminate on the tenth anniversary of the date our board adopts it. However, the plan administrator will retain its authority until all outstanding awards are exercised or terminated. The maximum term of options, share appreciation rights and other rights to acquire ordinary shares under the plan is ten years after the initial date of the award. | |||||||||||||||||||||
Employees, officers, directors and consultants that provide services to the Company or one of the Company’s subsidiaries may be selected to receive awards under the 2013 Plan and the compensation committee of the Company’s board of directors will be the administrator under the 2013 Plan. Awards under the 2013 Plan may be in the form of incentive or nonqualified share options, share appreciation rights, share bonuses, restricted share and other forms of awards including cash awards. | |||||||||||||||||||||
Share Options | |||||||||||||||||||||
The Company uses the Black-Scholes valuation model to calculate the fair value of share options. The fair value of share options granted to employees is estimated as of the grant date. The fair value of the share options granted to non-employees is re-measured at each reporting date. The assumptions used in valuation were as follows: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Risk-free interest rate | 2.52%-3.53% | 1.10-2.61% | 1.11-3.53% | 1.10-3.13% | |||||||||||||||||
Expected term (in years) | 6 to 10 | 6 to 10 | 6 to 10 | 6 to 10 | |||||||||||||||||
Dividend yield | — | — | — | — | |||||||||||||||||
Volatility | 48.04%-49.75% | 43.81%-50.40% | 39.69%-49.75% | 43.81%-52.66% | |||||||||||||||||
The risk-free interest rate assumption was based on the yield-to-maturity of the government bond with the longest maturity in the respective countries in which the Company operates. | |||||||||||||||||||||
The assumed dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. | |||||||||||||||||||||
The expected term was estimated based on the date of the grant, expiration date and vesting period as stated in the share option grant. The expected term was 6 years for employees and, for subsequent re-measurement of options granted to non-employee consultants, the expected term is calculated based on the remaining life of options of originally 10 years. | |||||||||||||||||||||
Due to the Company’s limited historical data, the estimated volatility incorporated the historical volatility of comparable companies whose share prices are publicly available. | |||||||||||||||||||||
Early Exercise of Employee Share Options | |||||||||||||||||||||
Certain share options granted under the Company’s Plan provide option holders the right to elect to exercise unvested options in exchange for restricted ordinary shares. Restricted shares, which amounted to 7,500 shares and 0 shares as of September 30, 2013 and December 30, 2012, respectively, are subject to a repurchase right held by the Company at the lower of (a) the fair market value of the restricted ordinary shares at the time of the termination, or (b) the original purchase price of the restricted ordinary shares, upon termination of the holder’s status as an employee or consultant. For exercises of employee options, this right usually lapses 25% on the first anniversary of the vesting start date and in 36 equal monthly amounts thereafter. These repurchase terms are considered to be a forfeiture provision and do not result in variable accounting. In accordance with authoritative guidance, the cash received from option holders for the exercise of unvested options is treated as a refundable deposit shown as a liability in the Company’s unaudited condensed consolidated financial statements. As of September 30, 2013 and December 31, 2012 cash received for early exercise of options totaled $8 and $0, respectively. | |||||||||||||||||||||
Total fair value for share options vested during the nine months ended September 30, 2013 was $1,100. | |||||||||||||||||||||
The total compensation cost related to all unvested share option grants not yet recognized as of September 30, 2013 was $13,091 and the weighted-average period over which these grants are expected to vest is 3.69 years. | |||||||||||||||||||||
Share Options to Employees and Consultants | |||||||||||||||||||||
The following table summarizes the details related to stock options granted and outstanding under the 2006 Share Incentive Plan for the nine months ended September 30, 2013: | |||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
Balance at December 31, 2012 | 2,734,688 | $ | 2.4 | ||||||||||||||||||
Granted | 1,330,760 | 17.68 | |||||||||||||||||||
Exercised | 263,667 | 0.3 | |||||||||||||||||||
Forfeited | 26,019 | 10.64 | |||||||||||||||||||
Canceled | 4,669 | 0.99 | |||||||||||||||||||
Outstanding at September 30, 2013 | 3,771,093 | $ | 7.89 | 7 | $ | 28,412 | |||||||||||||||
Exercisable at September 30, 2013 | 3,146,996 | $ | 7.21 | 6.61 | $ | 25,571 | |||||||||||||||
Vested at September 30, 2013 | 1,883,245 | $ | 1.34 | 4.74 | $ | 24,225 | |||||||||||||||
Vested and expected to vest at September 30, 2013 | 3,611,003 | $ | 7.54 | 6.89 | $ | 28,202 | |||||||||||||||
The Company recognized share-based compensation expense for options as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of net revenue | $ | 15 | $ | 5 | $ | 30 | $ | 15 | |||||||||||||
Research and development | 316 | 137 | 715 | 347 | |||||||||||||||||
Sales, general and administrative | 552 | 151 | 1,213 | 320 | |||||||||||||||||
The following table summarizes information about share options outstanding as of September 30, 2013: | |||||||||||||||||||||
Share Options | |||||||||||||||||||||
Share Options Outstanding | Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||
Term | |||||||||||||||||||||
(in years) | |||||||||||||||||||||
$0.13 - $0.25 | 789,600 | 2.75 | $ | 0.13 | 789,600 | $ | 0.13 | ||||||||||||||
$0.40 - $1.03 | 758,480 | 5.24 | 0.96 | 735,166 | 0.96 | ||||||||||||||||
$2.20 - $9.43 | 897,253 | 8.44 | 6.11 | 581,830 | 6.08 | ||||||||||||||||
$16.03 - $17.85 | 1,325,760 | 9.56 | 17.68 | 1,040,400 | 17.64 | ||||||||||||||||
3,771,093 | 7 | $ | 7.89 | 3,146,996 | $ | 7.21 | |||||||||||||||
Restricted Share Awards | |||||||||||||||||||||
On April 23, 2013, the Company granted 317,120 restricted shares with non-forfeitable dividend right under the Company’s 2006 Share Incentive Plan and these restricted shares are entitled to cash dividends with respect to the Restricted Shares subject to the award even though such shares are not vested. Therefore, pursuant to ASC 260-10-45-61A, these restricted shares are participating securities and related unvested restricted shares are included in the computation of basic net income per share under the two-class method. | |||||||||||||||||||||
The following table summarizes the details related to RSAs, granted and outstanding under the 2006 Share Incentive Plan for the nine months ended September 30, 2013: | |||||||||||||||||||||
Weighted-Average | |||||||||||||||||||||
Number | Grant Date Fair | ||||||||||||||||||||
of Shares | Value Per Share | ||||||||||||||||||||
Balance at December 31, 2012 | — | $ | — | ||||||||||||||||||
Granted | 330,620 | 17.98 | |||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Forfeited | 8,200 | 17.98 | |||||||||||||||||||
Outstanding at September 30, 2013 | 322,420 | (*) | $ | 17.98 | |||||||||||||||||
(*) | The restricted shares are not included in the outstanding ordinary shares due to their restrictions. | ||||||||||||||||||||
The estimated fair value on the grant date of RSAs was $17.98 per share and the share-based compensation expense related to these awards is calculated based on the estimated fair value of the Company’s ordinary shares on the date of grant, multiplied by the number of RSAs granted. The share-based compensation expense, less the forfeitures, is recorded on a straight-line basis over the requisite service period of the RSAs. As of September 30, 2013, there was $4,698 of unrecognized compensation costs, net of forfeitures related to RSAs granted under the Company’s 2006 Share Incentive Plan. The unrecognized compensation cost is expected to be recognized over a weighted average period of 3.97 years. | |||||||||||||||||||||
In connection with the grant of the RSAs to all participants, the Company recorded share-based compensation of $504 for the nine months ended September 30, 2013. | |||||||||||||||||||||
The Company recognized share-based compensation expense for RSAs as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of net revenue | $ | 19 | $ | — | $ | 32 | $ | — | |||||||||||||
Research and development | 230 | — | 409 | — | |||||||||||||||||
Sales, general and administrative | 36 | — | 63 | — |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
13. Income Taxes | |
The Company adopted ASC 740-270 approach for interim period tax computation and reporting. The Company recorded an income tax provision of $737, $427, $1,709 and $980 for the three months ended September 30, 2013 and 2012 and nine months ended September 30, 2013 and 2012, respectively. | |
The effective tax rate for the three and nine months ended September 30, 2013 was 8.4% and 9.2%, respectively, and 6.3% and 6.3% in the comparable periods of 2012, respectively. The difference between the effective tax rates and the statutory rate resulted primarily due to the foreign rate differential. The tax rate increase was mainly due to the increase in the total income before tax and the increase in income before tax in the jurisdictions with higher tax rates compared to the prior year as a result of the implementation of the new international structure. | |
During the three and nine months ended September 30, 2013, the gross amount of the Company’s unrecognized tax benefits did not have a significant increase or decrease because there has been no change in tax positions taken during the current year. Substantially all of the unrecognized tax benefits as of September 30, 2013, $6.9 million, if recognized, would affect the Company’s effective tax rate. As of September 30, 2013, the Company does not expect any significant increases or decreases to its unrecognized tax benefits within the next 12 months. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment and Geographic Information | ' | ||||||||||||||||
14. Segment and Geographic Information | |||||||||||||||||
The Company operates in one segment related to the design, development and sale of high performance, low power semiconductors for the home entertainment and cloud computing markets. The Company’s chief operating decision maker is its chief executive officer, who reviews the Company’s operating results on an aggregate basis for the purpose of evaluating financial performance and allocating resources. | |||||||||||||||||
The following table sets forth the Company’s revenue by geographic region: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Hong Kong | $ | 27,618 | $ | 18,421 | $ | 68,404 | $ | 50,002 | |||||||||
Asia Pacific | 960 | 912 | 2,782 | 1,236 | |||||||||||||
United States | 785 | 1,008 | 2,655 | 2,644 | |||||||||||||
Europe | 693 | 260 | 1,607 | 656 | |||||||||||||
$ | 30,056 | $ | 20,601 | $ | 75,448 | $ | 54,538 | ||||||||||
As of September 30, 2013, substantially all of the Company’s long-lived tangible assets were located in the Asia Pacific region. | |||||||||||||||||
The following table sets forth the Company’s revenue generated from sales of semiconductors solutions for the home entertainment and cloud computing markets: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Home entertainment | $ | 27,255 | $ | 18,649 | $ | 68,371 | $ | 50,614 | |||||||||
Cloud Computing market | 2,801 | 1,952 | 7,077 | 3,924 | |||||||||||||
$ | 30,056 | $ | 20,601 | $ | 75,448 | $ | 54,538 | ||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
15. Commitments and Contingencies | |||||||||||||||||
Future minimum lease payment under noncancelable operating leases having initial terms in excess of one year as of September 30, 2013 are as follows: | |||||||||||||||||
Payment Due by Period | |||||||||||||||||
Total | Less than | 3-Jan | 5-Mar | ||||||||||||||
1 Year | Years | Years | |||||||||||||||
(in thousands) | |||||||||||||||||
Operating lease obligations | $ | 2,461 | $ | 315 | $ | 1,877 | $ | 269 | |||||||||
Purchase obligations | 1,670 | 1,670 | — | — | |||||||||||||
Total contractual obligations | $ | 4,131 | $ | 1,985 | $ | 1,877 | $ | 269 | |||||||||
As of September 30, 2013 and December 31, 2012, there was no unsettled or unasserted claim or litigation against the Company. Rent expense incurred under operating leases was $352 and $234 for the three months ended September 30, 2013 and 2012 and $917 and $517 for the nine months ended September 30, 2013 and 2012, respectively. |
OffBalance_Sheet_Arrangements
Off-Balance Sheet Arrangements | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Off-Balance Sheet Arrangements | ' |
16. Off-Balance Sheet Arrangements | |
As of September 30, 2013 and December 31, 2012, the Company did not have any transactions, obligations or relationships that could be considered off-balance sheet arrangements. |
25for1_Reverse_Share_Split
2.5-for-1 Reverse Share Split | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
2.5-for-1 Reverse Share Split | ' |
17. 2.5-for-1 Reverse Share Split | |
On September 6, 2013, the Company’s shareholders approved and effected a reverse share split such that every 2.5 issued and unissued ordinary and preferred shares of par value US$0.005 were consolidated into one share with a par value of US$0.0125 each. All share-related disclosures, including par value, share price, number of ordinary shares, preferred shares, share options, restricted shares, and warrants, exercise price of share options, restricted shares, and warrants and related fair value per share, and net income per share calculations, have been recast to reflect the 2.5-for-1 reverse share split for all periods presented. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
18. Subsequent Events | |
On September 24, 2013, the Company registration statement on Form S-1 (File No. 333-190761) was declared effective by the SEC for the initial public offering of 8,165,000 shares of ordinary shares. The offering was completed on October 1, 2013 (note 1b). | |
Upon completion of the initial public offering of the Company on October 1, 2013, the Series A, B, B1 and B2 Convertible Preferred Shares automatically converted into 16,163,598 ordinary shares. |
Pro_Forma_Balance_Sheet_and_Ne
Pro Forma Balance Sheet and Net Income per Share for Conversion of Preferred Shares | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Pro Forma Balance Sheet and Net Income per Share for Conversion of Preferred Shares | ' | ||||||||
19. Pro Forma Balance Sheet and Net Income per Share for Conversion of Preferred Shares | |||||||||
The Series A, B, B-1 and B-2 convertible preferred shares automatically converted into ordinary shares based on the then effective conversion ratio immediately upon the closing of Qualified IPO on October 1, 2013. As the IPO was consummated after the September 30, 2013 date of these financial statements, the pro forma balance sheet as of September 30, 2013 assumes the Qualified IPO had occurred and presents an as adjusted financial position as if the conversion of the Series A, B, B-1 and B-2 convertible preferred shares into ordinary shares occurred on September 30, 2013 at the then conversion ratio of 1 for 1 (Series A, Series B issue on December 20, 2007 and Series B-2), 1 for 1.0173 (Series B issued on June 19, 2006) and 1 for 1.040 (Series B-1). Accordingly, the carrying value of the convertible preferred shares, in the amount of $54,400 was reclassified from Convertible Preferred Shares to ordinary shares and additional paid in capital for such pro forma presentation. | |||||||||
The unaudited pro-forma income per share for the three months and the nine months ended September 30, 2013 after giving effect to the conversion of the Series A, B, B-1 and B-2 Preferred Shares into ordinary shares as if the closing occurred at the beginning of fiscal 2013 was as follows: | |||||||||
For the Three Months | For the Nine Months | ||||||||
Ended | Ended | ||||||||
September 30, 2013 | September 30, 2013 | ||||||||
Numerator: | |||||||||
Actual net income attributable to ordinary shareholders | $ | 1,581 | $ | 3,139 | |||||
Pro-forma effect of preferred shares | 6,460 | 13,674 | |||||||
Pro-form net income attributable to ordinary shareholders – Basic and diluted | 8,041 | 16,813 | |||||||
Denominator: | |||||||||
Actual weighted average number of ordinary shares outstanding | |||||||||
Basic | 4,658,034 | 4,618,302 | |||||||
Diluted | 6,527,371 | 6,557,368 | |||||||
Pro-forma effect of preferred shares | 16,163,598 | 16,163,598 | |||||||
Denominator for pro-forma basic and diluted calculation | |||||||||
Basic | 20,821,632 | 20,781,900 | |||||||
Diluted | 22,690,969 | 22,720,966 | |||||||
Pro-forma basic and diluted net income per share attributable to ordinary shareholders | |||||||||
Basic | $ | 0.39 | $ | 0.81 | |||||
Diluted | $ | 0.35 | $ | 0.74 | |||||
Certain equity awards are not included in the calculation of pro-forma diluted net income per share because of their anti-dilutive effect. |
Restricted_Net_Assets
Restricted Net Assets | 9 Months Ended |
Sep. 30, 2013 | |
Receivables [Abstract] | ' |
Restricted Net Assets | ' |
20. Restricted Net Assets | |
Regulations in the PRC currently permit payment of dividends of a PRC company only out of accumulated profits as determined in accordance with accounting standards and regulations in China. Under PRC law, the Company’s subsidiaries incorporated in China are required to set aside at least 10% of their after-tax profit based on PRC accounting standards each year to their general reserves until the cumulative amount reaches 50% of their paid-in capital. These reserves are not distributable as cash dividends, or as loans or advances. | |
As a result of these and other restrictions under PRC laws and regulations, the PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion amounted to approximately $10,749 and $10,749 of the Company’s total unaudited condensed consolidated net assets as of September 30, 2013 and December 31, 2012. Even though the Company currently does not require any such dividends, loans or advances from the PRC subsidiaries for working capital and other funding purposes, the Company may in the future require additional cash resources from our PRC subsidiaries due to changes in business conditions, to fund future acquisitions and developments, or merely declare and pay dividends to or distributions to the Company’s shareholders. | |
For the nine months ended September 30, 2013, no dividends were declared by any of the Company’s subsidiaries. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Organization | ' | ||||||||||||||||
a. Organization | |||||||||||||||||
Montage Technology Group Limited (the “Company”) was incorporated as an international business company with limited liability under International Business Companies Act, 1984 of the British Virgin Islands on March 29, 2004 and continued to, and registered in the Cayman Islands as an exempted company on April 24, 2006. The Company conducts business in several territories including China, Hong Kong, Taiwan and the United States through its wholly owned subsidiaries. | |||||||||||||||||
The Company is a global fabless provider of analog and mixed signal semiconductor solutions currently addressing the home entertainment and cloud computing markets. The foundation of its technology platform is the Company’s ability to design high performance, low power semiconductors by using its proprietary building blocks which include radio frequency and analog front end solutions, digital signal processors and high speed interfaces. In the home entertainment market, the Company’s technology platform enables it to design highly integrated solutions with customized software for set-top boxes. The Company’s solutions optimize signal processing performance under demanding operating conditions typically found in emerging market environments. In the cloud computing market, the Company offers high performance, low power memory interface solutions that enable memory intensive server applications. | |||||||||||||||||
Initial Public Offering | ' | ||||||||||||||||
b. Initial Public Offering | |||||||||||||||||
On October 1, 2013, the Company completed an initial public offering (the “Offering”) of 8,165,000 shares of ordinary shares at a price of $10.00 per share, including 5,325,000 additional ordinary shares issued by the Company and 2,840,000 shares sold by existing shareholders. Accordingly, the Company received net proceeds of $49.5 million from the issuance of the ordinary shares in the offering after deducting underwriting discounts and commissions of $3.7 million and excluding other offering expenses of approximately $3.2 million. | |||||||||||||||||
Upon completion of the initial public offering on October 1, 2013, the Series A, B, B1 and B2 Convertible Preferred Shares automatically converted into 16,163,598 ordinary shares and the related carrying amount were reclassified as additional paid-in capital. As these transactions occurred after September 30, 2013, they are not reflected in the unaudited condensed consolidated financial statements as of and for the three month period ended September 30, 2013. See Note 19 for discussion of the unaudited pro forma information. | |||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
c. Basis of Presentation | |||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All intercompany transactions have been eliminated upon consolidation. The interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”), Form 10-Q and Article 10 of SEC Regulation S-X. | |||||||||||||||||
The unaudited condensed consolidated financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to state fairly the Company’s unaudited consolidated financial position at September 30, 2013 and 2012. The results of operations for the nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for future quarters or the full year. | |||||||||||||||||
These unaudited interim condensed financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. Therefore, these unaudited interim condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related footnotes for the year ended December 31, 2012, included in the Company’s prospectus filed with the SEC in September 2013 (“Company Prospectus”). | |||||||||||||||||
All share-related disclosures, including par value, share price, number of ordinary shares, preferred shares, share options, restricted shares, warrants, exercise prices of share options, restricted shares, related fair value per share, and net income per share calculations, have been recast to reflect the 2.5-for-1 reverse share split (See Note 17) for all periods presented. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
d. Use of Estimates | |||||||||||||||||
The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of net revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements mainly include share-based compensation, allowance for doubtful accounts, inventory write-down, allowance for deferred tax assets, provision for uncertain tax positions, and estimated useful lives of equipment and intangible assets. | |||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
e. Significant Accounting Policies | |||||||||||||||||
There has been no material change to the Company’s significant accounting policies disclosed in the Company’s consolidated financial statements for the year ended December 31, 2012 included in the Company Prospectus filed with the SEC in September 2013. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
f. Recent Accounting Pronouncements | |||||||||||||||||
There has been no material change to Recent Accounting Pronouncements from those disclosed in the Company’s consolidated financial statements for the year ended December 31, 2012 included in the Prospectus filed with the SEC in September 2013. | |||||||||||||||||
Concentration of Credit Risks | ' | ||||||||||||||||
g. Concentration of Credit Risks | |||||||||||||||||
Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. | |||||||||||||||||
As of September 30, 2013, substantially all of the Company’s cash and cash equivalents and short-term investments were held by reputable financial institutions in the jurisdictions where the Company and its subsidiaries are located. The Company believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Company has not experienced any losses on its deposits of cash and cash equivalents, and short-term investments. | |||||||||||||||||
The following table summarizes the percentage of the Company’s revenue and accounts receivable represented by distributors and customers with balances over 10% of total revenue: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Revenue | 2012 | 2013 | 2012 | 2013 | |||||||||||||
Company A | 58 | % | 73 | % | 43 | % | 71 | % | |||||||||
Company B | 13 | % | 9 | % | 21 | % | 8 | % | |||||||||
Accounts receivable | December 31, 2012 | September 30, 2013 | |||||||||||||||
Company A | 89 | % | 79 | % | |||||||||||||
The Company establishes credit limits for each distributor and customer and reviews such limits prior to product shipment. The Company did not experience significant credit loss from its distributors and customers during the periods presented. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Percentage of Revenue and Accounts Receivable Represented by Distributors and Customers | ' | ||||||||||||||||
The following table summarizes the percentage of the Company’s revenue and accounts receivable represented by distributors and customers with balances over 10% of total revenue: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Revenue | 2012 | 2013 | 2012 | 2013 | |||||||||||||
Company A | 58 | % | 73 | % | 43 | % | 71 | % | |||||||||
Company B | 13 | % | 9 | % | 21 | % | 8 | % | |||||||||
Accounts receivable | December 31, 2012 | September 30, 2013 | |||||||||||||||
Company A | 89 | % | 79 | % |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computation of Basic and Diluted Net Income Per Ordinary Share | ' | ||||||||||||||||
The following shows the computation of basic and diluted net income per ordinary share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator | |||||||||||||||||
Net income | $ | 8,041 | $ | 6,365 | $ | 16,813 | $ | 14,594 | |||||||||
Less: Accretion for preferred shares | — | (14 | ) | (23 | ) | (42 | ) | ||||||||||
Less: Allocation of net income to participating preferred shares and restricted shares | (6,460 | ) | (5,194 | ) | (13,651 | ) | (12,038 | ) | |||||||||
Numerator for basic calculation | 1,581 | 1,157 | 3,139 | 2,514 | |||||||||||||
Undistributed earnings re-allocated to ordinary share holders | 455 | 397 | 926 | 847 | |||||||||||||
Numerator for diluted calculation | $ | 2,036 | $ | 1,554 | $ | 4,065 | $ | 3,361 | |||||||||
Denominator | |||||||||||||||||
Denominator for basic calculation, weighted-average number of shares of ordinary share outstanding | 4,658,034 | 4,321,144 | 4,618,302 | 4,303,135 | |||||||||||||
Dilutive effect of share option | 1,860,216 | 2,070,108 | 1,926,644 | 1,991,931 | |||||||||||||
Dilutive effect of restricted shares and awards | 9,121 | — | 12,422 | — | |||||||||||||
Denominator for diluted calculation | 6,527,371 | 6,391,252 | 6,557,368 | 6,295,066 | |||||||||||||
Net income per share | |||||||||||||||||
Basic | $ | 0.34 | $ | 0.27 | $ | 0.68 | $ | 0.58 | |||||||||
Diluted | $ | 0.31 | $ | 0.24 | $ | 0.62 | $ | 0.53 | |||||||||
Schedule of Anti-dilutive Shares not Included in Calculation of Diluted Net Income Per Share | ' | ||||||||||||||||
The following table sets forth potential shares of ordinary shares that are not included in the calculation of diluted net income per share because including them would be anti-dilutive as of the end of each period presented: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Convertible preferred shares | 16,163,598 | 16,163,598 | 16,163,598 | 16,163,598 | |||||||||||||
Schedule of Equity Awards not Included In Calculation of Diluted Net Income Per Share | ' | ||||||||||||||||
The following table sets forth potential shares of ordinary shares that are not included in the calculation of diluted net income per share for the corresponding periods because the number of shares calculated based on the assumed proceeds from exercise of the equity awards and the weighted average fair value of the Company’s ordinary shares is higher than the number of shares assumed to be issued under the awards: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Equity awards outstanding | 1,768,960 | 403,520 | 1,726,480 | 417,120 |
Fair_Market_Value_of_Financial1
Fair Market Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Summary of Financial Instruments, Measured at Fair Value by Level within Fair Value Hierarchy | ' | ||||||||||||||||
The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy as of December 31, 2012 and September 30, 2013: | |||||||||||||||||
Fair value measure at reporting date using | |||||||||||||||||
As of December 31, 2012 | As of | Quoted Prices | Significant | Significant | |||||||||||||
December 31, | in Active Markets | Other | Unobservable | ||||||||||||||
2012 | for Identical Assets | Observable | Inputs | ||||||||||||||
(Level 1) | Inputs (Level 2) | (Level 3) | |||||||||||||||
Cash | $ | 12,175 | $ | 12,175 | $ | — | $ | — | |||||||||
Time deposit within the maturity term below 3 months | 9,405 | 9,405 | — | — | |||||||||||||
Short-term investments | 6,472 | — | 6,472 | — | |||||||||||||
Total | $ | 28,052 | $ | 21,580 | $ | 6,472 | $ | — | |||||||||
Fair value measure at reporting date using | |||||||||||||||||
As of September 30, 2013 | As of | Quoted Prices | Significant | Significant | |||||||||||||
September 30, | in Active Markets | Other | Unobservable | ||||||||||||||
2013 | for Identical Assets | Observable | Inputs | ||||||||||||||
(Level 1) | Inputs (Level 2) | (Level 3) | |||||||||||||||
Cash | $ | 27,414 | $ | 27,414 | $ | — | $ | — | |||||||||
Bank investment product readily convertible within the maturity term below 3 months | 9,759 | — | 9,759 | — | |||||||||||||
Time deposit with the maturity term below 3 months | 4,008 | 4,008 | — | — | |||||||||||||
Time deposit with the maturity term greater than 3 months but less than 1 year | 50 | 50 | — | — | |||||||||||||
Short-term investments | 6,393 | — | 6,393 | — | |||||||||||||
Total | $ | 47,624 | $ | 31,472 | $ | 16,152 | $ | — | |||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
As of | As of | ||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Work in progress | $ | 5,491 | $ | 3,665 | |||||
Finished goods | 4,339 | 7,451 | |||||||
$ | 9,830 | $ | 11,116 | ||||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Schedule of Prepaid Expenses and Other Current Assets | ' | ||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
As of | As of | ||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Value-added tax recoverable | $ | 603 | $ | 486 | |||||
Prepaid license fees | 141 | 294 | |||||||
Prepayment for material purchase | 173 | 170 | |||||||
Rental deposits | 400 | 321 | |||||||
Value-added tax refundable on export sales | 489 | 306 | |||||||
Other prepaid expenses and other current assets | 785 | 423 | |||||||
$ | 2,591 | $ | 2,000 | ||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Summary of Property and Equipment, Net | ' | ||||||||
Property and equipment, net consist of the following: | |||||||||
As of | As of | ||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Office and other equipment | $ | 3,862 | $ | 3,193 | |||||
Furniture and fixtures | 663 | 475 | |||||||
Leasehold improvements | 1,665 | 1,354 | |||||||
6,190 | 5,022 | ||||||||
Less: accumulated depreciation and amortization | (3,731 | ) | (2,738 | ) | |||||
$ | 2,459 | $ | 2,284 | ||||||
Acquired_Intangible_Assets_Net1
Acquired Intangible Assets, Net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||
Summary of Acquired Intangible Assets, Net | ' | ||||||||
Acquired intangible assets, net consist of the following: | |||||||||
As of | As of | ||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Assembled workforce (1) | $ | 1,900 | $ | 1,900 | |||||
Technology Licenses | 116 | 150 | |||||||
Software | 265 | — | |||||||
Montage Macao License (2) | 129 | — | |||||||
Less: accumulated amortization | (1,390 | ) | (554 | ) | |||||
$ | 1,020 | $ | 1,496 | ||||||
-1 | Assembled workforce | ||||||||
On August 23, 2012, Montage Technology Hong Kong Limited, a wholly owned subsidiary of the Company, entered into agreements with a third party to acquire a research and development workforce, intellectual property (“IP”) and computers and office equipment for total cash consideration of $2,016. The acquisition has been completed in September 2012. The Company determined that the acquisition of research and development workforce, IP and computers and office equipment should be accounted for an asset acquisition as the group of assets acquired by the Company did not meet the definition of a business as pursuant to ASC 805. The Company allocated the total consideration to the acquired research and development workforce, IP (which was obsolete) and computers and office equipment with the amount of $1,900, $0 and $116, respectively, on the acquisition date. The research and development workforce is recorded as assembled workforce and amortized on a straight line basis over 18 months as the Company expected the acquired workforce to provide economic benefit to the Company during this period based on the Company’s prior experience in developing research and development workforce and conducting research and development activities. | |||||||||
-2 | Montage Macao license | ||||||||
The Company entered into a memorandum of understanding to acquire Sonoma Commercial Offshore, Ltd, a Macao Offshore Company, which was subsequently renamed Montage Technology Commercial Offshore Limited (“Montage Macao”), to be the principal entity in the Company’s international corporate structure. The acquisition of Montage Macao was completed in May 2013 when Montage Macao completed its registration with the Macao government and the Company took control over Montage Macao. Montage Macao did not have any assets or liabilities other than a qualification license as a commercial offshore entity in Macao. The Company determined that the acquisition of Montage Macao shall be accounted for as an asset acquisition of its commercial offshore license qualification in Macao as it did not meet the definition of a business as pursuant to ASC 805-20-20 and ASC 805-10-55-4 through 805-10-55-9. The useful life of the commercial offshore license qualification in Macao is indefinite as long as the Company maintains its offshore business in Macao. Therefore, the acquisition cost of $129 for the commercial offshore license is not amortized and shall be tested for impairment annually or more frequently if events or changes in circumstances indicate that the commercial offshore license might be impaired pursuant to ASC 350-30-35-18 through 35-20. |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities | ' | ||||||||
Accrued liabilities consist of the following: | |||||||||
As of | As of | ||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Government funding for research and development projects (1) | $ | 3,893 | $ | 3,055 | |||||
Accrued employee compensation and other employee expenses | 3,504 | 4,505 | |||||||
Accrued research and development expenses | — | 28 | |||||||
Advances from customers | 267 | 230 | |||||||
Accrued warranty | 187 | 149 | |||||||
Accrued professional service fee | 3,484 | 497 | |||||||
Proceeds received for early exercised options | 8 | — | |||||||
Other accrued liabilities | 598 | 644 | |||||||
$ | 11,941 | $ | 9,108 | ||||||
-1 | For the three months ended September 30, 2013 and 2012 and nine months ended September 30, 2013 and 2012, the Company recorded nil, $1,025, $396, and $1,025 government funding as a deduction to expense, respectively. The Company has not recorded any reduction to the carrying value of depreciable assets. As of December 31, 2012 and September 30, 2013, the Company has recorded an accrued liability for cash funding received from the PRC government of $3,055, and $3,893, respectively, because the government had not commenced its review of the research and development projects qualified for funding at the end of the respective periods. |
Deferred_Margin_Net_Tables
Deferred Margin, Net (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Revenue Recognition [Abstract] | ' | ||||||||||||||||
Components of Deferred Margin, Net | ' | ||||||||||||||||
Deferred margin, net consists of the following: | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Deferred revenue | $ | 20,146 | $ | 15,878 | |||||||||||||
Deferred cost of revenue | (18,601 | ) | (14,678 | ) | |||||||||||||
$ | 1,545 | $ | 1,200 | ||||||||||||||
Deferred Revenue and Deferred Cost of Revenue on Sales to Distributor | ' | ||||||||||||||||
The deferred revenue and deferred cost of revenue on sales to distributor activities for the nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance at the beginning of the period | $ | 1,200 | $ | 5,147 | |||||||||||||
Revenue deferred upon shipment to distributors | 33,847 | 27,734 | |||||||||||||||
Cost of sales deferred upon shipments to distributors | (26,952 | ) | (18,509 | ) | |||||||||||||
Revenue recognized upon resale from distributors to end customers | (29,126 | ) | (26,295 | ) | |||||||||||||
Cost of sales recognized upon resale from distributors to end customers | 23,029 | 13,126 | |||||||||||||||
Price adjustments to distributors | (453 | ) | (195 | ) | |||||||||||||
Balance at the end of the period | $ | 1,545 | 1,008 | ||||||||||||||
Revenue Recognized Upon Resale from Distributors to End Customers | ' | ||||||||||||||||
The following table shows reconciliation from revenue recognized upon resale from distributors to end customers as included in the above table to revenue recorded in the consolidated statements of operations and comprehensive income for the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue recognized upon resale from distributors to end customers (through deferred revenue) | $ | 12,063 | $ | 7,842 | $ | 29,126 | $ | 26,295 | |||||||||
Revenue recognized upon resale from LQW to end customers (recorded directly in revenue)* | 15,136 | 9,171 | 38,115 | 17,998 | |||||||||||||
Revenue recognized for the Company’s sales directly to end customer | 2,857 | 3,588 | 8,207 | 10,245 | |||||||||||||
Total | $ | 30,056 | $ | 20,601 | $ | 75,448 | $ | 54,538 | |||||||||
* | LQW has been a distributor for the Company’s products since October 2011. The Company is entitled to bill only a portion of the total sale price at the time of shipment (deferred revenue), with the remainder billed upon sale by LQW to the end customer. The portion of the total sale price that the Company is not entitled to bill at the time of shipment to LQW is recorded directly in revenue upon sale by LQW to the end customers. |
Convertible_Preferred_Shares_T
Convertible Preferred Shares (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||
Summary of Convertible Preferred Shares | ' | ||||||||||||||||||||||||||
Convertible preferred shares consisted of the following as of September 30, 2013: | |||||||||||||||||||||||||||
Convertible | Par | Subscription | Shares | Carrying | Liquidation | ||||||||||||||||||||||
Value | Price | Amount | Value | ||||||||||||||||||||||||
Per | |||||||||||||||||||||||||||
Preferred Shares | Issuance date | Share | Per Share | Authorized | Outstanding | ||||||||||||||||||||||
Series A | April 23, 2004 and | ||||||||||||||||||||||||||
August 31, 2004 | $ | 0.0125 | $ | 1.25 | 4,800,000 | 4,800,000 | $ | 6,000 | $ | 6,000 | |||||||||||||||||
Series B | 19-Jun-06 | 0.0125 | 3.2263 | 4,681,416 | (1) | 3,325,843 | 13,949 | 10,730 | |||||||||||||||||||
Series B issued upon exercise of warrant | December 20, 2007 | 0.0125 | 2.54 | 930,000 | 3,071 | 2,362 | |||||||||||||||||||||
Series B-1 | 18-May-07 | 0.0125 | 3.9985 | 4,551,709 | 4,049,276 | 21,048 | 16,191 | ||||||||||||||||||||
Series B-2 | 8-Oct-09 | ||||||||||||||||||||||||||
22-Oct-09 | |||||||||||||||||||||||||||
30-Jun-10 | 0.0125 | 2.799 | (2) | 3,571,514 | 2,839,409 | 10,332 | 7,947 | ||||||||||||||||||||
17,604,639 | 15,944,528 | $ | 54,400 | $ | 43,230 | ||||||||||||||||||||||
-1 | Authorized shares for Series B convertible preferred shares issued on June 19, 2006 also included shares authorized for Series B convertible preferred shares issued upon exercise of warrant on December 20, 2007. | ||||||||||||||||||||||||||
-2 | Pursuant to the Company’s Amended and Restated Memorandum and Articles dated September 2009, the subscription price for Series B-2 convertible preferred shares represents the weighted average price of the shares issued in October 2009 and June 2010, respectively. | ||||||||||||||||||||||||||
Summary of Accretion to Carrying Value of Convertible Preferred Shares | ' | ||||||||||||||||||||||||||
For the three months and nine months ended September 30, 2012 and 2013, the accretion to the carrying value of convertible preferred shares was summarized as follows: | |||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||
Series B-2 | — | $ | 14 | $ | 23 | $ | 42 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Assumptions Used in Valuation of Fair Value of Share Options Granted | ' | ||||||||||||||||||||
The Company uses the Black-Scholes valuation model to calculate the fair value of share options. The fair value of share options granted to employees is estimated as of the grant date. The fair value of the share options granted to non-employees is re-measured at each reporting date. The assumptions used in valuation were as follows: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Risk-free interest rate | 2.52%-3.53% | 1.10-2.61% | 1.11-3.53% | 1.10-3.13% | |||||||||||||||||
Expected term (in years) | 6 to 10 | 6 to 10 | 6 to 10 | 6 to 10 | |||||||||||||||||
Dividend yield | — | — | — | — | |||||||||||||||||
Volatility | 48.04%-49.75% | 43.81%-50.40% | 39.69%-49.75% | 43.81%-52.66% | |||||||||||||||||
Summary of Stock Options Granted and Outstanding Under 2006 Share Incentive Plan | ' | ||||||||||||||||||||
The following table summarizes the details related to stock options granted and outstanding under the 2006 Share Incentive Plan for the nine months ended September 30, 2013: | |||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
Balance at December 31, 2012 | 2,734,688 | $ | 2.4 | ||||||||||||||||||
Granted | 1,330,760 | 17.68 | |||||||||||||||||||
Exercised | 263,667 | 0.3 | |||||||||||||||||||
Forfeited | 26,019 | 10.64 | |||||||||||||||||||
Canceled | 4,669 | 0.99 | |||||||||||||||||||
Outstanding at September 30, 2013 | 3,771,093 | $ | 7.89 | 7 | $ | 28,412 | |||||||||||||||
Exercisable at September 30, 2013 | 3,146,996 | $ | 7.21 | 6.61 | $ | 25,571 | |||||||||||||||
Vested at September 30, 2013 | 1,883,245 | $ | 1.34 | 4.74 | $ | 24,225 | |||||||||||||||
Vested and expected to vest at September 30, 2013 | 3,611,003 | $ | 7.54 | 6.89 | $ | 28,202 | |||||||||||||||
Summary of Information about Share Options Outstanding | ' | ||||||||||||||||||||
The following table summarizes information about share options outstanding as of September 30, 2013: | |||||||||||||||||||||
Share Options | |||||||||||||||||||||
Share Options Outstanding | Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||
Term | |||||||||||||||||||||
(in years) | |||||||||||||||||||||
$0.13 - $0.25 | 789,600 | 2.75 | $ | 0.13 | 789,600 | $ | 0.13 | ||||||||||||||
$0.40 - $1.03 | 758,480 | 5.24 | 0.96 | 735,166 | 0.96 | ||||||||||||||||
$2.20 - $9.43 | 897,253 | 8.44 | 6.11 | 581,830 | 6.08 | ||||||||||||||||
$16.03 - $17.85 | 1,325,760 | 9.56 | 17.68 | 1,040,400 | 17.64 | ||||||||||||||||
3,771,093 | 7 | $ | 7.89 | 3,146,996 | $ | 7.21 | |||||||||||||||
Summary of Details Related to RSAs, Granted and Outstanding | ' | ||||||||||||||||||||
The following table summarizes the details related to RSAs, granted and outstanding under the 2006 Share Incentive Plan for the nine months ended September 30, 2013: | |||||||||||||||||||||
Weighted-Average | |||||||||||||||||||||
Number | Grant Date Fair | ||||||||||||||||||||
of Shares | Value Per Share | ||||||||||||||||||||
Balance at December 31, 2012 | — | $ | — | ||||||||||||||||||
Granted | 330,620 | 17.98 | |||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Forfeited | 8,200 | 17.98 | |||||||||||||||||||
Outstanding at September 30, 2013 | 322,420 | (*) | $ | 17.98 | |||||||||||||||||
(*) | The restricted shares are not included in the outstanding ordinary shares due to their restrictions. | ||||||||||||||||||||
Share Options [Member] | ' | ||||||||||||||||||||
Schedule of Recognized Share-Based Compensation Expense | ' | ||||||||||||||||||||
The Company recognized share-based compensation expense for options as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of net revenue | $ | 15 | $ | 5 | $ | 30 | $ | 15 | |||||||||||||
Research and development | 316 | 137 | 715 | 347 | |||||||||||||||||
Sales, general and administrative | 552 | 151 | 1,213 | 320 | |||||||||||||||||
Restricted Share Awards [Member] | ' | ||||||||||||||||||||
Schedule of Recognized Share-Based Compensation Expense | ' | ||||||||||||||||||||
The Company recognized share-based compensation expense for RSAs as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of net revenue | $ | 19 | $ | — | $ | 32 | $ | — | |||||||||||||
Research and development | 230 | — | 409 | — | |||||||||||||||||
Sales, general and administrative | 36 | — | 63 | — |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Summary of Company's Revenue by Geographic Region | ' | ||||||||||||||||
The following table sets forth the Company’s revenue by geographic region: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Hong Kong | $ | 27,618 | $ | 18,421 | $ | 68,404 | $ | 50,002 | |||||||||
Asia Pacific | 960 | 912 | 2,782 | 1,236 | |||||||||||||
United States | 785 | 1,008 | 2,655 | 2,644 | |||||||||||||
Europe | 693 | 260 | 1,607 | 656 | |||||||||||||
$ | 30,056 | $ | 20,601 | $ | 75,448 | $ | 54,538 | ||||||||||
Summary of Company's Revenue Generated from Sales of Semiconductors Solutions | ' | ||||||||||||||||
The following table sets forth the Company’s revenue generated from sales of semiconductors solutions for the home entertainment and cloud computing markets: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Home entertainment | $ | 27,255 | $ | 18,649 | $ | 68,371 | $ | 50,614 | |||||||||
Cloud Computing market | 2,801 | 1,952 | 7,077 | 3,924 | |||||||||||||
$ | 30,056 | $ | 20,601 | $ | 75,448 | $ | 54,538 | ||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Future Minimum Lease Payment under Noncancelable Operating Leases | ' | ||||||||||||||||
Future minimum lease payment under noncancelable operating leases having initial terms in excess of one year as of September 30, 2013 are as follows: | |||||||||||||||||
Payment Due by Period | |||||||||||||||||
Total | Less than | 3-Jan | 5-Mar | ||||||||||||||
1 Year | Years | Years | |||||||||||||||
(in thousands) | |||||||||||||||||
Operating lease obligations | $ | 2,461 | $ | 315 | $ | 1,877 | $ | 269 | |||||||||
Purchase obligations | 1,670 | 1,670 | — | — | |||||||||||||
Total contractual obligations | $ | 4,131 | $ | 1,985 | $ | 1,877 | $ | 269 | |||||||||
Pro_Forma_Balance_Sheet_and_Ne1
Pro Forma Balance Sheet and Net Income per Share for Conversion of Preferred Shares (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Unaudited Pro-Forma Income per Share | ' | ||||||||
The unaudited pro-forma income per share for the three months and the nine months ended September 30, 2013 after giving effect to the conversion of the Series A, B, B-1 and B-2 Preferred Shares into ordinary shares as if the closing occurred at the beginning of fiscal 2013 was as follows: | |||||||||
For the Three Months | For the Nine Months | ||||||||
Ended | Ended | ||||||||
September 30, 2013 | September 30, 2013 | ||||||||
Numerator: | |||||||||
Actual net income attributable to ordinary shareholders | $ | 1,581 | $ | 3,139 | |||||
Pro-forma effect of preferred shares | 6,460 | 13,674 | |||||||
Pro-form net income attributable to ordinary shareholders – Basic and diluted | 8,041 | 16,813 | |||||||
Denominator: | |||||||||
Actual weighted average number of ordinary shares outstanding | |||||||||
Basic | 4,658,034 | 4,618,302 | |||||||
Diluted | 6,527,371 | 6,557,368 | |||||||
Pro-forma effect of preferred shares | 16,163,598 | 16,163,598 | |||||||
Denominator for pro-forma basic and diluted calculation | |||||||||
Basic | 20,821,632 | 20,781,900 | |||||||
Diluted | 22,690,969 | 22,720,966 | |||||||
Pro-forma basic and diluted net income per share attributable to ordinary shareholders | |||||||||
Basic | $ | 0.39 | $ | 0.81 | |||||
Diluted | $ | 0.35 | $ | 0.74 | |||||
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 06, 2013 | Oct. 02, 2013 |
Subsequent Events [Member] | ||
Organization And Significant Accounting Policies [Line Items] | ' | ' |
Initial public offering, ordinary shares issued | ' | 8,165,000 |
Initial public offering, price per share | ' | $10 |
Initial public offering, additional shares issued | ' | 5,325,000 |
Initial public offering, shares sold by shareholders | ' | 2,840,000 |
Proceeds from issuance of ordinary shares | ' | $49.50 |
Underwriting discounts and commissions | ' | 3.7 |
Other offering expenses | ' | $3.20 |
Ordinary shares issued upon conversion of Convertible Preferred Shares | ' | 16,163,598 |
Reverse share split | '2.5-for-1 | ' |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies - Summary of Percentage of Revenue and Accounts Receivable Represented by Distributors and Customers (Detail) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |
Company A [Member] | Company A [Member] | Company A [Member] | Company A [Member] | Company B [Member] | Company B [Member] | Company B [Member] | Company B [Member] | Company A [Member] | Company A [Member] | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of revenue and accounts receivable | 73.00% | 58.00% | 71.00% | 43.00% | 9.00% | 13.00% | 8.00% | 21.00% | 79.00% | 89.00% |
Net_Income_Per_Share_Computati
Net Income Per Share - Computation of Basic and Diluted Net Income Per Ordinary Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator | ' | ' | ' | ' |
Net income | $8,041 | $6,365 | $16,813 | $14,594 |
Less: Accretion for preferred shares | ' | -14 | -23 | -42 |
Less: Allocation of net income to participating preferred shares and restricted shares | -6,460 | -5,194 | -13,651 | -12,038 |
Numerator for basic calculation | 1,581 | 1,157 | 3,139 | 2,514 |
Undistributed earnings re-allocated to ordinary share holders | 455 | 397 | 926 | 847 |
Numerator for diluted calculation | $2,036 | $1,554 | $4,065 | $3,361 |
Denominator | ' | ' | ' | ' |
Denominator for basic calculation, weighted-average number of shares of ordinary share outstanding | 4,658,034 | 4,321,144 | 4,618,302 | 4,303,135 |
Dilutive effect of share option | 1,860,216 | 2,070,108 | 1,926,644 | 1,991,931 |
Dilutive effect of restricted shares and awards | 9,121 | ' | 12,422 | ' |
Denominator for diluted calculation | 6,527,371 | 6,391,252 | 6,557,368 | 6,295,066 |
Net income per share | ' | ' | ' | ' |
Basic | $0.34 | $0.27 | $0.68 | $0.58 |
Diluted | $0.31 | $0.24 | $0.62 | $0.53 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 23, 2013 | Sep. 30, 2013 |
Restricted Share Awards [Member] | Restricted Share Awards [Member] | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' |
Number of restricted shares, granted | ' | ' | ' | ' | 317,120 | 330,620 |
Noncumulative dividends percentage | ' | ' | 8.00% | ' | ' | ' |
Noncumulative dividend of preferred shares | $865 | $865 | $2,594 | $2,594 | ' | ' |
Undistributed earnings attributable to preferred shares | 5,595 | 4,329 | 11,057 | 9,444 | ' | ' |
Undistributed earnings re-allocated to ordinary share holders | $455 | $397 | $926 | $847 | ' | ' |
Net_Income_Per_Share_Schedule_
Net Income Per Share - Schedule of Anti-dilutive Shares not Included in Calculation of Diluted Net Income Per Share (Detail) (Convertible Preferred Shares [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Convertible Preferred Shares [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares excluded from calculation of diluted net income per share | 16,163,598 | 16,163,598 | 16,163,598 | 16,163,598 |
Net_Income_Per_Share_Schedule_1
Net Income Per Share - Schedule of Equity Awards not Included In Calculation of Diluted Net Income Per Share (Detail) (Equity awards outstanding [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Equity awards outstanding [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares excluded from calculation of diluted net income per share | 1,768,960 | 403,520 | 1,726,480 | 417,120 |
Fair_Market_Value_of_Financial2
Fair Market Value of Financial Instruments - Summary of Financial Instruments, Measured at Fair Value by Level within Fair Value Hierarchy (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | $47,624 | $28,052 |
Cash [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 27,414 | 12,175 |
Bank Investment Product Readily Convertible Within the Maturity Term Below 3 Months [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 9,759 | ' |
Time Deposit Within the Maturity Term Below 3 Months [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 4,008 | 9,405 |
Time Deposit With the Maturity Term Greater Than 3 Months but Less Than 1 Year [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 50 | ' |
Short-Term Investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 6,393 | 6,472 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 31,472 | 21,580 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 27,414 | 12,175 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Time Deposit Within the Maturity Term Below 3 Months [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 4,008 | 9,405 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Time Deposit With the Maturity Term Greater Than 3 Months but Less Than 1 Year [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 50 | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 16,152 | 6,472 |
Significant Other Observable Inputs (Level 2) [Member] | Bank Investment Product Readily Convertible Within the Maturity Term Below 3 Months [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | 9,759 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Short-Term Investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments, measured at fair value | $6,393 | $6,472 |
Fair_Market_Value_of_Financial3
Fair Market Value of Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value Disclosures [Abstract] | ' | ' | ' | ' |
Change in fair value of short-term investments | $182 | $43 | $344 | $63 |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Work in progress | $5,491 | $3,665 |
Finished goods | 4,339 | 7,451 |
Inventories | $9,830 | $11,116 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Restatement Adjustment [Member] | Restatement Adjustment [Member] | ||||||
Inventory [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Finished goods | $4,339 | ' | $4,339 | ' | $7,451 | $7,373 | $5,464 |
Inventory write-downs | 109 | 23 | 414 | 204 | ' | ' | ' |
Inventory reserve balance | $1,321 | ' | $1,321 | ' | $2,406 | ' | ' |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' |
Value-added tax recoverable | $603 | $486 |
Prepaid license fees | 141 | 294 |
Prepayment for material purchase | 173 | 170 |
Rental deposits | 400 | 321 |
Value-added tax refundable on export sales | 489 | 306 |
Other prepaid expenses and other current assets | 785 | 423 |
Prepaid expenses and other current assets, total | $2,591 | $2,000 |
Property_and_Equipment_Net_Sum
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ' | ' |
Office and other equipment | $3,862 | $3,193 |
Furniture and fixtures | 663 | 475 |
Leasehold improvements | 1,665 | 1,354 |
Property and equipment, gross | 6,190 | 5,022 |
Less: accumulated depreciation and amortization | -3,731 | -2,738 |
Property and equipment, net | $2,459 | $2,284 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Property Plant And Equipment [Abstract] | ' | ' | ' | ' |
Depreciation expense | $310 | $207 | $929 | $482 |
Acquired_Intangible_Assets_Net2
Acquired Intangible Assets, Net - Summary of Acquired Intangible Assets, Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Acquired Intangible Assets [Line Items] | ' | ' |
Less: accumulated amortization | ($1,390) | ($554) |
Acquired intangible assets, net | 1,020 | 1,496 |
Montage Macao License [Member] | ' | ' |
Acquired Intangible Assets [Line Items] | ' | ' |
Acquired intangible assets | 129 | ' |
Assembled Workforce [Member] | ' | ' |
Acquired Intangible Assets [Line Items] | ' | ' |
Acquired intangible assets, gross | 1,900 | 1,900 |
Technology Licenses [Member] | ' | ' |
Acquired Intangible Assets [Line Items] | ' | ' |
Acquired intangible assets, gross | 116 | 150 |
Software [Member] | ' | ' |
Acquired Intangible Assets [Line Items] | ' | ' |
Acquired intangible assets, gross | $265 | ' |
Acquired_Intangible_Assets_Net3
Acquired Intangible Assets, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense | $324 | $124 | $986 | $162 |
Acquired_Intangible_Assets_Net4
Acquired Intangible Assets, Net - Summary of Acquired Intangible Assets, Net (Parenthetical) (Detail) (USD $) | 9 Months Ended | 0 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 23, 2012 | Aug. 23, 2012 | Aug. 23, 2012 | 31-May-13 |
Assembled Workforce [Member] | Intellectual Property [Member] | Montage Macao License [Member] | ||||
Acquired Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Consideration for assets acquired | ' | ' | $2,016 | ' | ' | ' |
Cash consideration for intangible assets | ' | ' | ' | 1,900 | 0 | ' |
Cash consideration for computers and office equipment | ' | ' | 116 | ' | ' | ' |
Research and development workforce, amortization period | ' | ' | ' | '18 months | ' | ' |
Cash consideration for intangible assets | $484 | $950 | ' | ' | ' | $129 |
ShortTerm_Loans_Additional_Inf
Short-Term Loans - Additional Information (Detail) | Dec. 31, 2012 |
Debt Disclosure [Abstract] | ' |
Short-term bank loans outstanding, weighted average interest rate per annum | 5.88% |
Accrued_Liabilities_Schedule_o
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Government funding for research and development projects | $3,893 | $3,055 |
Accrued employee compensation and other employee expenses | 3,504 | 4,505 |
Accrued research and development expenses | ' | 28 |
Advances from customers | 267 | 230 |
Accrued warranty | 187 | 149 |
Accrued professional service fee | 3,484 | 497 |
Proceeds received for early exercised options | 8 | ' |
Other accrued liabilities | 598 | 644 |
Accrued liabilities | $11,941 | $9,108 |
Accrued_Liabilities_Schedule_o1
Accrued Liabilities - Schedule of Accrued Liabilities (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Payables And Accruals [Abstract] | ' | ' | ' | ' | ' |
Government funding deduction to expense | ' | $1,025 | $396 | $1,025 | ' |
Government funding for research and development projects | $3,893 | ' | $3,893 | ' | $3,055 |
Deferred_Margin_Net_Components
Deferred Margin, Net - Components of Deferred Margin, Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Deferred Revenue Disclosure [Abstract] | ' | ' | ' | ' |
Deferred revenue | $20,146 | $15,878 | ' | ' |
Deferred cost of revenue | -18,601 | -14,678 | ' | ' |
Deferred margin, net | $1,545 | $1,200 | $1,008 | $5,147 |
Deferred_Margin_Net_Deferred_R
Deferred Margin, Net - Deferred Revenue and Deferred Cost of Revenue on Sales to Distributor (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Deferred Revenue Disclosure [Abstract] | ' | ' |
Balance at the beginning of the period | $1,200 | $5,147 |
Revenue deferred upon shipment to distributors | 33,847 | 27,734 |
Cost of sales deferred upon shipments to distributors | -26,952 | -18,509 |
Revenue recognized upon resale from distributors to end customers | -29,126 | -26,295 |
Cost of sales recognized upon resale from distributors to end customers | 23,029 | 13,126 |
Price adjustments to distributors | -453 | -195 |
Balance at the end of the period | $1,545 | $1,008 |
Deferred_Margin_Net_Revenue_Re
Deferred Margin, Net - Revenue Recognized Upon Resale from Distributors to End Customers (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Deferred Margin, Net [Line Items] | ' | ' | ' | ' |
Revenue | $30,056 | $20,601 | $75,448 | $54,538 |
Resale from Distributors to End Customers [Member] | ' | ' | ' | ' |
Deferred Margin, Net [Line Items] | ' | ' | ' | ' |
Revenue | 12,063 | 7,842 | 29,126 | 26,295 |
Resale from LQW to End Customers [Member] | ' | ' | ' | ' |
Deferred Margin, Net [Line Items] | ' | ' | ' | ' |
Revenue | 15,136 | 9,171 | 38,115 | 17,998 |
Sales Directly to End Customers [Member] | ' | ' | ' | ' |
Deferred Margin, Net [Line Items] | ' | ' | ' | ' |
Revenue | $2,857 | $3,588 | $8,207 | $10,245 |
Convertible_Preferred_Shares_S
Convertible Preferred Shares - Summary of Convertible Preferred Shares (Detail) (USD $) | Sep. 06, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||
In Thousands, except Share data, unless otherwise specified | Series A Convertible Preferred Shares [Member] | Series A Convertible Preferred Shares [Member] | Series A Convertible Preferred Shares [Member] | Series A Convertible Preferred Shares [Member] | Series B Convertible Preferred Shares [Member] | Series B Convertible Preferred Shares [Member] | Series B Convertible Preferred Shares [Member] | Series B Issued Upon Exercise of Warrant [Member] | Series B-1 Convertible Preferred Shares [Member] | Series B-1 Convertible Preferred Shares [Member] | Series B-2 Convertible Preferred Share [Member] | Series B-2 Convertible Preferred Share [Member] | Series B-2 Convertible Preferred Share [Member] | Series B-2 Convertible Preferred Share [Member] | Series B-2 Convertible Preferred Share [Member] | Convertible Preferred Shares [Member] | |||
Date 1 [Member] | Date 2 [Member] | Date 1 [Member] | Date 1 [Member] | Date 2 [Member] | Date 3 [Member] | ||||||||||||||
Temporary Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Convertible Preferred Shares, Weighted Average Subscription Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.80 | $2.80 | [1] | ' | ' | ' | ' | |
Convertible Preferred Shares, Issuance date | ' | ' | ' | 23-Apr-04 | 31-Aug-04 | ' | ' | 19-Jun-06 | 20-Dec-07 | 18-May-07 | ' | ' | ' | 8-Oct-09 | 22-Oct-09 | 30-Jun-10 | ' | ||
Convertible Preferred Shares, Par Value Per Share | $0.01 | $0.01 | $0.01 | ' | ' | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | ' | $0.01 | ' | ' | ' | ' | ||
Convertible Preferred Shares, Subscription Price Per Share | ' | $1.25 | ' | ' | ' | ' | ' | $3.23 | $2.54 | $4.00 | ' | ' | ' | ' | ' | ' | ' | ||
Convertible Preferred Shares, Shares Authorized | ' | 4,800,000 | 4,800,000 | ' | ' | 4,681,416 | 4,681,416 | 4,681,416 | [2] | ' | 4,551,709 | 4,551,709 | ' | 3,571,514 | 3,571,514 | ' | ' | 17,604,639 | |
Convertible preferred shares, shares outstanding | ' | 4,800,000 | 4,800,000 | ' | ' | 4,255,843 | 4,255,843 | 3,325,843 | 930,000 | 4,049,276 | 4,049,276 | ' | 2,839,409 | 2,839,409 | ' | ' | 15,944,528 | ||
Convertible Preferred Shares, Carrying Amount | ' | $6,000 | $6,000 | ' | ' | $17,020 | $17,020 | $13,949 | $3,071 | $21,048 | $21,048 | ' | $10,332 | $10,332 | ' | ' | $54,400 | ||
Convertible preferred shares, liquidation value | ' | $6,000 | $6,000 | ' | ' | $13,092 | $13,092 | $10,730 | $2,362 | $16,191 | $16,191 | ' | $7,947 | $7,947 | ' | ' | $43,230 | ||
[1] | Pursuant to the Company's Amended and Restated Memorandum and Articles dated September 2009, the subscription price for Series B-2 convertible preferred shares represents the weighted average price of the shares issued in October 2009 and June 2010, respectively. | ||||||||||||||||||
[2] | Authorized shares for Series B convertible preferred shares issued on June 19, 2006 also included shares authorized for Series B convertible preferred shares issued upon exercise of warrant on December 20, 2007. |
Convertible_Preferred_Shares_A
Convertible Preferred Shares - Additional Information (Detail) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Dec. 31, 2012 | Oct. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 18, 2010 | Sep. 30, 2013 | Aug. 18, 2010 | Sep. 30, 2013 | ||
Subsequent Events [Member] | Qualified IPO [Member] | Qualified IPO [Member] | Series B-2 Convertible Preferred Share [Member] | Series B-2 Convertible Preferred Share [Member] | Series B Convertible Preferred Shares [Member] | Series B Convertible Preferred Shares [Member] | Series B-1 Convertible Preferred Shares [Member] | Series B-1 Convertible Preferred Shares [Member] | Series A Convertible Preferred Shares [Member] | ||||
Minimum [Member] | |||||||||||||
Temporary Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross proceeds from sale of ordinary shares | ' | ' | ' | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Sale price per share | ' | ' | $10 | ' | $5 | ' | ' | ' | ' | ' | ' | ' | |
Share reserved as available for conversion of preferred share | 16,163,598 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Weighted Average Subscription price per share | ' | ' | ' | ' | ' | $2.80 | $2.80 | [1] | ' | ' | ' | ' | ' |
Conversion price of preferred shares | ' | ' | ' | ' | ' | ' | ' | ' | $3.17 | ' | $3.85 | ' | |
Number of common shares issued for conversion of convertible preferred shares | ' | ' | ' | ' | ' | ' | ' | ' | 1.0173 | ' | 1.04 | ' | |
Convertible preferred shares dividend percentage on issuance price | 8.00% | ' | ' | ' | ' | ' | 8.00% | 8.00% | ' | 8.00% | ' | 8.00% | |
Convertible preferred shares, liquidation preference percentage of subscription price | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | 100.00% | ' | 100.00% | |
Terms of redemption rights | 'The holders of the Companybs Series B and B-1 preferred shares hold redemption rights such that at any time after June 19, 2011, if at least two-thirds of the holders of Series B and B-1 convertible preferred shares, voting together, elect to redeem their shares, the Company shall redeem all Series B and B-1 convertible preferred shares. The holders of the Companybs Series B-2 convertible preferred shares hold redemption rights such that at any time after June 1, 2013, if at least two-thirds of the holders of Series B-2 elect to redeem their shares, the Company shall redeem all Series B-2 convertible preferred shares. The redemption price available to Series B, B-1 and B-2 shall be 130% of subscription price per share, plus all declared and unpaid dividends.According to the shareholders' resolution dated August 13, 2013, the first possible redemption dates of the Company's Series B, B-1 and B-2 preferred shares were amended to January 1, 2014, respectively. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Convertible preferred shares redemption percentage of subscription price | ' | ' | ' | ' | ' | ' | 130.00% | 130.00% | ' | 130.00% | ' | ' | |
The aggregate amount of redemption for all issued redeemable preferred shares each year for five years | ' | $48,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ordinary shares issued upon conversion of Convertible Preferred Shares | ' | ' | 16,163,598 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Pursuant to the Company's Amended and Restated Memorandum and Articles dated September 2009, the subscription price for Series B-2 convertible preferred shares represents the weighted average price of the shares issued in October 2009 and June 2010, respectively. |
Convertible_Preferred_Shares_S1
Convertible Preferred Shares - Summary of Accretion to Carrying Value of Convertible Preferred Shares (Detail) (Series B-2 Convertible Preferred Share [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Series B-2 Convertible Preferred Share [Member] | ' | ' | ' | ' |
Temporary Equity [Line Items] | ' | ' | ' | ' |
Convertible Preferred Shares, Accretion to the Carrying Value | ' | $14 | $23 | $42 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 23, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
2006 Share Incentive Plan [Member] | 2006 Share Incentive Plan [Member] | Early Exercise of Employee Share Options [Member] | Early Exercise of Employee Share Options [Member] | Share Options [Member] | 2013 Performance Incentive Plan [Member] | Share Options [Member] | Non-Employee Stock Option [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | |||
Installment | 2006 Share Incentive Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | '4 years | ' |
Expiry period from date of grant | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Vesting percentage | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | 25.00% | ' |
Number of ordinary shares authorized under equity award issuance plan | ' | ' | 6,566,544 | 6,566,544 | ' | ' | ' | 1,600,000 | ' | ' | ' | ' | ' |
Incentive plan description | 'Share options granted vest over a maximum period of four years and expire ten years from the date of the grant. Share options generally vest over four years, one-quarter on the first anniversary of the date of the grant and monthly thereafter for the remaining three years. RSAs have various vesting periods determined by the plan administrator, and generally vest over four years, with 25% on each of the anniversary of the vesting commence date. | ' | ' | ' | ' | ' | ' | 'The share limit will automatically increase on the first trading day in January of each year (commencing with January 2014) by an amount equal to the lesser of (1) 4% of the total number of outstanding shares of our ordinary shares on the last trading day in December in the prior year, (2) 1,000,000 shares, or such lesser number as determined by our board of directors. | ' | ' | ' | ' | ' |
Percentage of fair market value of ordinary shares on date of grant | 110.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of incentive grant options grant to ownership of ordinary shares | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | '10 years | ' | ' | ' |
Unvested shares | ' | ' | ' | ' | 7,500 | 0 | ' | ' | ' | ' | ' | ' | ' |
Options vested, exercisable | ' | ' | ' | ' | 36 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from early exercise of options | ' | ' | ' | ' | $8 | $0 | ' | ' | ' | ' | ' | ' | ' |
Total fair value for stock options vested | ' | ' | ' | ' | ' | ' | 1,100 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | 13,091 | ' | ' | ' | ' | ' | 4,698 |
Expected weighted-average period of compensation cost to be recognized | ' | ' | ' | ' | ' | ' | '3 years 8 months 9 days | ' | ' | ' | ' | '3 years 11 months 19 days | ' |
Number of restricted shares, granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 317,120 | 330,620 | ' |
Estimated fair value of RSA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17.98 | ' |
Share-based compensation expense | $2,462 | $682 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $504 | ' |
ShareBased_Compensation_Assump
Share-Based Compensation - Assumptions Used in Valuation of Fair Value of Share Options Granted (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Risk-free interest rate, minimum | 2.52% | 1.10% | 1.11% | 1.10% |
Risk-free interest rate, maximum | 3.53% | 2.61% | 3.53% | 3.13% |
Dividend yield | ' | ' | ' | ' |
Volatility, minimum | 48.04% | 43.81% | 39.69% | 43.81% |
Volatility, maximum | 49.75% | 50.40% | 49.75% | 52.66% |
Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected term (in years) | '6 years | '6 years | '6 years | '6 years |
Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected term (in years) | '10 years | '10 years | '10 years | '10 years |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Stock Options Granted and Outstanding Under 2006 Share Incentive Plan (Detail) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Number of Shares, Outstanding, Beginning Balance | 2,734,688 |
Number of Shares, Granted | 1,330,760 |
Number of Shares, Exercised | 263,667 |
Number of Shares, Forfeited | 26,019 |
Number of Shares, Canceled | 4,669 |
Number of Shares, Outstanding, Ending Balance | 3,771,093 |
Number of Shares, Exercisable at September 30, 2013 | 3,146,996 |
Number of Shares, Vested at September 30, 2013 | 1,883,245 |
Number of Shares, Vested and expected to vest at September 30, 2013 | 3,611,003 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $2.40 |
Weighted Average Exercise Price, Granted | $17.68 |
Weighted Average Exercise Price, Exercised | $0.30 |
Weighted Average Exercise Price, Forfeited | $10.64 |
Weighted Average Exercise Price, Canceled | $0.99 |
Weighted Average Exercise Price, Outstanding, Ending balance | $7.89 |
Weighted Average Exercise Price, Exercisable at September 30, 2013 | $7.21 |
Weighted Average Exercise Price, Vested at September 30, 2013 | $1.34 |
Weighted Average Exercise Price, Vested and expected to vest at September 30, 2013 | $7.54 |
Weighted Average Remaining Contractual Life, Outstanding at September 30, 2013 | '7 years |
Weighted Average Remaining Contractual Life, Exercisable at September 30, 2013 | '6 years 7 months 10 days |
Weighted Average Remaining Contractual Life, Vested at September 30, 2013 | '4 years 8 months 27 days |
Weighted Average Remaining Contractual Life, Vested and expected to vest at September 30, 2013 | '6 years 10 months 21 days |
Aggregate Intrinsic Value, Outstanding at September 30, 2013 | $28,412 |
Aggregate Intrinsic Value, Exercisable at September 30, 2013 | 25,571 |
Aggregate Intrinsic Value, Vested at September 30, 2013 | 24,225 |
Aggregate Intrinsic Value, Vested and expected to vest at September 30, 2013 | $28,202 |
ShareBased_Compensation_Schedu
Share-Based Compensation - Schedule of Recognized Share-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Expenses | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | $2,462 | $682 |
Share Options [Member] | Cost of Net Revenue [Member] | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' |
Share-based compensation expense | 15 | 5 | 30 | 15 |
Share Options [Member] | Research and Development [Member] | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' |
Share-based compensation expense | 316 | 137 | 715 | 347 |
Share Options [Member] | Sales, General and Administrative [Member] | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' |
Share-based compensation expense | 552 | 151 | 1,213 | 320 |
Restricted Share Awards [Member] | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | 504 | ' |
Restricted Share Awards [Member] | Cost of Net Revenue [Member] | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' |
Share-based compensation expense | 19 | ' | 32 | ' |
Restricted Share Awards [Member] | Research and Development [Member] | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' |
Share-based compensation expense | 230 | ' | 409 | ' |
Restricted Share Awards [Member] | Sales, General and Administrative [Member] | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' |
Share-based compensation expense | $36 | ' | $63 | ' |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Information about Share Options Outstanding (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Share Options Outstanding, Share Outstanding | 3,771,093 | 2,734,688 |
Share Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '7 years | ' |
Share Options Outstanding, Weighted Average Exercise Price | $7.89 | $2.40 |
Share Options Exercisable, Shares Exercisable | 3,146,996 | ' |
Share Options Exercisable, Weighted Average Exercise Price | $7.21 | ' |
$0.13 - $0.25 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Share Options Outstanding, Share Outstanding | 789,600 | ' |
Share Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '2 years 9 months | ' |
Share Options Outstanding, Weighted Average Exercise Price | $0.13 | ' |
Share Options Exercisable, Shares Exercisable | 789,600 | ' |
Share Options Exercisable, Weighted Average Exercise Price | $0.13 | ' |
Range of Exercise Prices | $0.13 | ' |
Range of Exercise Prices | $0.25 | ' |
$0.40 - $1.03 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Share Options Outstanding, Share Outstanding | 758,480 | ' |
Share Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '5 years 2 months 27 days | ' |
Share Options Outstanding, Weighted Average Exercise Price | $0.96 | ' |
Share Options Exercisable, Shares Exercisable | 735,166 | ' |
Share Options Exercisable, Weighted Average Exercise Price | $0.96 | ' |
Range of Exercise Prices | $0.40 | ' |
Range of Exercise Prices | $1.03 | ' |
$2.20 - $9.43 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Share Options Outstanding, Share Outstanding | 897,253 | ' |
Share Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '8 years 5 months 9 days | ' |
Share Options Outstanding, Weighted Average Exercise Price | $6.11 | ' |
Share Options Exercisable, Shares Exercisable | 581,830 | ' |
Share Options Exercisable, Weighted Average Exercise Price | $6.08 | ' |
Range of Exercise Prices | $2.20 | ' |
Range of Exercise Prices | $9.43 | ' |
$16.03 - $17.85 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Share Options Outstanding, Share Outstanding | 1,325,760 | ' |
Share Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '9 years 6 months 22 days | ' |
Share Options Outstanding, Weighted Average Exercise Price | $17.68 | ' |
Share Options Exercisable, Shares Exercisable | 1,040,400 | ' |
Share Options Exercisable, Weighted Average Exercise Price | $17.64 | ' |
Range of Exercise Prices | $16.03 | ' |
Range of Exercise Prices | $17.85 | ' |
ShareBased_Compensation_Summar2
Share-Based Compensation - Summary of Details Related to RSAs, Granted and Outstanding (Detail) (Restricted Share Awards [Member], USD $) | 0 Months Ended | 9 Months Ended |
Apr. 23, 2013 | Sep. 30, 2013 | |
Restricted Share Awards [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted-Average Grant Date Fair Value Per Share, Outstanding, Beginning balance | ' | ' |
Weighted-Average Grant Date Fair Value Per Share, Granted | ' | $17.98 |
Weighted-Average Grant Date Fair Value Per Share, Vested | ' | ' |
Weighted-Average Grant Date Fair Value Per Share, Forfeited | ' | $17.98 |
Weighted-Average Grant Date Fair Value Per Share, Outstanding, Ending balance | ' | $17.98 |
Number of Shares, Outstanding, Beginning balance | ' | ' |
Number of Shares, Granted | 317,120 | 330,620 |
Number of Shares, Vested | ' | ' |
Number of Shares, Forfeited | ' | 8,200 |
Number of Shares, Outstanding, Ending balance | ' | 322,420 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Provision for income tax | $737,000 | $427,000 | $1,709,000 | $980,000 |
Effective tax rate | 8.40% | 6.30% | 9.20% | 6.30% |
Unrecognized tax benefits that would affect the effective tax rate | $6,900,000 | ' | $6,900,000 | ' |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of operating segment | 1 |
Segment_and_Geographic_Informa3
Segment and Geographic Information - Summary of Company's Revenue by Geographic Region (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue | $30,056 | $20,601 | $75,448 | $54,538 |
Hong Kong [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue | 27,618 | 18,421 | 68,404 | 50,002 |
Asia Pacific [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue | 960 | 912 | 2,782 | 1,236 |
United States [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue | 785 | 1,008 | 2,655 | 2,644 |
Europe [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue | $693 | $260 | $1,607 | $656 |
Segment_and_Geographic_Informa4
Segment and Geographic Information - Summary of Company's Revenue Generated from Sales of Semiconductors Solutions (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | $30,056 | $20,601 | $75,448 | $54,538 |
Home Entertainment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 27,255 | 18,649 | 68,371 | 50,614 |
Cloud Computing Market [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | $2,801 | $1,952 | $7,077 | $3,924 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Summary of Future Minimum Lease Payment under Noncancelable Operating Leases (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Total contractual obligations | $4,131 |
Total contractual obligations, Less than 1 Year | 1,985 |
Total contractual obligations, 1 - 3 Years | 1,877 |
Total contractual obligations, 3 - 5 Years | 269 |
Purchase obligations, Total | 1,670 |
Purchase obligations, Less than 1 Year | 1,670 |
Operating lease obligations, Total | 2,461 |
Operating lease obligations, Less than 1 Year | 315 |
Operating lease obligations, 1 - 3 Years | 1,877 |
Operating lease obligations, 3 - 5 Years | $269 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Commitments And Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Rent expense under operating leases | $352 | $234 | $917 | $517 |
25for1_Reverse_Share_Split_Add
2.5-for-1 Reverse Share Split - Additional Information (Detail) (USD $) | 0 Months Ended | ||
Sep. 06, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Class of Stock [Line Items] | ' | ' | ' |
Reverse share split | '2.5-for-1 | ' | ' |
Ordinary shares, par value | $0.01 | $0.01 | $0.01 |
Preferred shares, par value | $0.01 | ' | ' |
Before Reverse Share Split [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Ordinary shares, par value | $0.01 | ' | ' |
Preferred shares, par value | $0.01 | ' | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Events [Member]) | 0 Months Ended |
Oct. 02, 2013 | |
Subsequent Events [Member] | ' |
Subsequent Event [Line Items] | ' |
Public offering shares | 8,165,000 |
Ordinary shares issued upon conversion of Convertible Preferred Shares | 16,163,598 |
Pro_Forma_Balance_Sheet_and_Ne2
Pro Forma Balance Sheet and Net Income per Share for Conversion of Preferred Shares - Additional Information (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Earnings Per Share Pro Forma [Line Items] | ' |
Conversion of preferred shares | 'Conversion ratio of 1 for 1 (Series A, Series B issue on December 20, 2007 and Series B-2), 1 for 1.0173 (Series B issued on June 19, 2006) and 1 for 1.040 (Series B-1). |
Convertible Preferred Shares [Member] | ' |
Earnings Per Share Pro Forma [Line Items] | ' |
Carrying value of the convertible preferred shares | 54,400 |
Pro_Forma_Balance_Sheet_and_Ne3
Pro Forma Balance Sheet and Net Income per Share for Conversion of Preferred Shares (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' | ' | ' |
Actual net income attributable to ordinary shareholders | $1,581 | $1,157 | $3,139 | $2,514 |
Pro-forma effect of preferred shares | 6,460 | ' | 13,674 | ' |
Net income | $8,041 | $6,365 | $16,813 | $14,594 |
Actual weighted average number of ordinary shares outstanding | ' | ' | ' | ' |
Basic | 4,658,034 | 4,321,144 | 4,618,302 | 4,303,135 |
Diluted | 6,527,371 | 6,391,252 | 6,557,368 | 6,295,066 |
Pro-forma effect of preferred shares | 16,163,598 | ' | 16,163,598 | ' |
Denominator for pro-forma basic and diluted calculation | ' | ' | ' | ' |
Basic | 20,821,632 | ' | 20,781,900 | ' |
Diluted | 22,690,969 | ' | 22,720,966 | ' |
Pro-forma basic and diluted net income per share attributable to ordinary shareholders | ' | ' | ' | ' |
Basic | $0.39 | ' | $0.81 | ' |
Diluted | $0.35 | ' | $0.74 | ' |
Restricted_Net_Assets_Addition
Restricted Net Assets - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
PRC [Member] | PRC [Member] | ||
Restricted Net Assets [Line Items] | ' | ' | ' |
Percentage of profit after-tax kept into general reserves, Minimum | 10.00% | ' | ' |
Percentage of profit after-tax kept into general reserves to reach cumulative amount of paid-in capital | 50.00% | ' | ' |
Approximate amount of restricted portion of net assets | ' | $10,749 | $10,749 |