Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document And Entity Information [Abstract] | ' |
Document Type | 'S-1 |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-13 |
Trading Symbol | 'MONT |
Entity Registrant Name | 'MONTAGE TECHNOLOGY GROUP LTD |
Entity Central Index Key | '0001375514 |
Entity Filer Category | 'Non-accelerated Filer |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $41,181 | $21,580 | $23,343 |
Short-term investments | 6,443 | 6,472 | 0 |
Accounts receivable, net | 10,413 | 7,903 | 5,924 |
Inventories | 9,830 | 11,116 | 6,981 |
Prepaid expenses and other current assets | 2,591 | 2,000 | 1,798 |
Current deferred tax assets | 343 | 338 | 420 |
Total current assets | 70,801 | 49,409 | 38,466 |
Property and equipment, net | 2,459 | 2,284 | 1,015 |
Acquired intangible asset, net | 1,020 | 1,496 | 94 |
Deferred tax assets | 330 | 330 | 291 |
Deferred offering costs | 3,240 | 283 | 0 |
Total assets | 77,850 | 53,802 | 39,866 |
Current liabilities: | ' | ' | ' |
Accounts payable | 5,345 | 3,719 | 6,855 |
Short-term loans | 0 | 1,591 | 2,063 |
Accrued liabilities | 11,941 | 9,108 | 8,091 |
Deferred margin, net | 1,545 | 1,200 | 5,147 |
Income tax payable | 1,422 | 261 | 42 |
Current deferred tax liabilities | 34 | 34 | 0 |
Total current liabilities | 20,287 | 15,913 | 22,198 |
Long-term tax liabilities | 4,288 | 4,295 | 3,422 |
Total liabilities | 24,575 | 20,208 | 25,620 |
Commitments and contingencies | ' | ' | ' |
Shareholders' equity (deficit): | ' | ' | ' |
Ordinary Shares, $0.0125 par value; 26,804,639 shares authorized; 4,293,639, 4,403,859 and 4,660,025 issued and outstanding at December 31, 2011 and 2012 and September 30, 2013 (unaudited), respectively | 58 | 55 | 54 |
Additional paid-in capital | 3,515 | 1,010 | 0 |
Accumulated comprehensive income | 2,148 | 1,811 | 1,810 |
Statutory reserve | 740 | 740 | 610 |
Accumulated deficit | -7,586 | -24,399 | -42,550 |
Total shareholders' equity (deficit) | -1,125 | -20,783 | -40,076 |
Total liabilities, convertible preferred share and shareholders' equity (deficit) | 77,850 | 53,802 | 39,866 |
Series A Convertible Preferred Shares [Member] | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' |
Convertible preferred shares, value | 6,000 | 6,000 | 6,000 |
Series B Convertible Preferred Shares [Member] | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' |
Convertible preferred shares, value | 17,020 | 17,020 | 17,020 |
Series B-1 Convertible Preferred Shares [Member] | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' |
Convertible preferred shares, value | 21,048 | 21,048 | 21,048 |
Series B-2 Convertible Preferred Shares [Member] | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' |
Convertible preferred shares, value | 10,332 | 10,309 | 10,254 |
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 asset, 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 | 0 | ' | ' |
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 tax liabilities | 4,288 | ' | ' |
Total liabilities | 24,575 | ' | ' |
Commitments and contingencies | ' | ' | ' |
Shareholders' equity (deficit): | ' | ' | ' |
Ordinary Shares, $0.0125 par value; 26,804,639 shares authorized; 4,293,639, 4,403,859 and 4,660,025 issued and outstanding at December 31, 2011 and 2012 and September 30, 2013 (unaudited), respectively | 260 | ' | ' |
Additional paid-in capital | 57,713 | ' | ' |
Accumulated comprehensive income | 2,148 | ' | ' |
Statutory reserve | 740 | ' | ' |
Accumulated deficit | -7,586 | ' | ' |
Total shareholders' equity (deficit) | 53,275 | ' | ' |
Total liabilities, convertible preferred share and shareholders' equity (deficit) | 77,850 | ' | ' |
Pro Forma [Member] | Series A Convertible Preferred Shares [Member] | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' |
Convertible preferred shares, value | 0 | ' | ' |
Pro Forma [Member] | Series B Convertible Preferred Shares [Member] | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' |
Convertible preferred shares, value | 0 | ' | ' |
Pro Forma [Member] | Series B-1 Convertible Preferred Shares [Member] | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' |
Convertible preferred shares, value | 0 | ' | ' |
Pro Forma [Member] | Series B-2 Convertible Preferred Shares [Member] | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' |
Convertible preferred shares, value | $0 | ' | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | |
Ordinary Shares, par value | $0.01 |
Ordinary Shares, shares authorized | 26,804,639 |
Ordinary Shares, shares issued | 4,660,025 |
Ordinary Shares, shares outstanding | 4,660,025 |
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 issued | 4,800,000 |
Convertible Preferred Shares, Shares Outstanding | 4,800,000 |
Convertible preferred shares, liquidation value | $6,000 |
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 issued | 4,255,843 |
Convertible Preferred Shares, Shares Outstanding | 4,255,843 |
Convertible preferred shares, liquidation value | 13,092 |
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 issued | 4,049,276 |
Convertible Preferred Shares, Shares Outstanding | 4,049,276 |
Convertible preferred shares, liquidation value | 16,191 |
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 issued | 2,839,409 |
Convertible Preferred Shares, Shares Outstanding | 2,839,409 |
Convertible preferred shares, liquidation value | $7,947 |
Pro Forma [Member] | ' |
Ordinary Shares, par value | $0.01 |
Ordinary Shares, shares authorized | 26,804,639 |
Ordinary Shares, shares issued | 0 |
Ordinary Shares, shares outstanding | 0 |
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 | 0 |
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 | 0 |
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 | 0 |
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 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Revenue | $75,448 | $54,538 | $78,245 | $50,338 | $29,078 |
Cost of revenue | -27,496 | -21,374 | -31,736 | -22,840 | -21,248 |
Gross profit | 47,952 | 33,164 | 46,509 | 27,498 | 7,830 |
Operating expenses: | ' | ' | ' | ' | ' |
Research and development | -19,096 | -12,304 | -17,568 | -13,651 | -11,078 |
Sales, general and administrative | -10,681 | -5,614 | -9,792 | -5,895 | -5,046 |
Total operating expenses | -29,777 | -17,918 | -27,360 | -19,546 | -16,124 |
Income (loss) from operations | 18,175 | 15,246 | 19,149 | 7,952 | -8,294 |
Interest income (expense), net | 504 | 75 | 207 | -36 | -44 |
Fair value changes in warrant liability | 0 | 0 | 0 | 0 | -37 |
Other income (expense), net | -157 | 253 | 153 | -307 | -114 |
Income (loss) before income taxes | 18,522 | 15,574 | 19,509 | 7,609 | -8,489 |
Provision for Income tax | -1,709 | -980 | -1,228 | -2,637 | -54 |
Net income (loss) | 16,813 | 14,594 | 18,281 | 4,972 | -8,543 |
Other comprehensive income | ' | ' | ' | ' | ' |
Cumulative translation adjustments | 337 | -93 | 1 | 507 | 276 |
Comprehensive income (loss) | 17,150 | 14,501 | 18,282 | 5,479 | -8,267 |
Accretion for convertible preferred shares | -23 | -42 | -55 | -1,147 | -2,513 |
Allocation to participating preferred shares and restricted shares | -13,651 | -12,038 | -15,112 | -3,748 | 0 |
Net Income (loss) attributable to ordinary shareholders-Basic | 3,139 | 2,514 | 3,114 | 77 | -11,056 |
Undistributed earnings re-allocated to ordinary shareholders | 926 | 847 | 1,059 | 22 | 0 |
Net Income (loss) attributable to ordinary shareholders-Diluted | 4,065 | 3,361 | 4,173 | 99 | -11,056 |
Net income (loss) per share: | ' | ' | ' | ' | ' |
Basic | $0.68 | $0.58 | $0.72 | $0.02 | ($2.66) |
Diluted | $0.62 | $0.53 | $0.66 | $0.02 | ($2.66) |
Weighted-average shares used in computing net income (loss) per share: | ' | ' | ' | ' | ' |
Basic | 4,618,302 | 4,303,135 | 4,319,243 | 4,260,192 | 4,157,498 |
Diluted | 6,557,368 | 6,295,066 | 6,366,682 | 5,924,390 | 4,157,498 |
Series B Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' |
Other comprehensive income | ' | ' | ' | ' | ' |
Accretion for convertible preferred shares | 0 | 0 | 0 | -470 | -960 |
Series B-1 Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' |
Other comprehensive income | ' | ' | ' | ' | ' |
Accretion for convertible preferred shares | 0 | 0 | 0 | -623 | -1,274 |
Series B-2 Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' |
Other comprehensive income | ' | ' | ' | ' | ' |
Accretion for convertible preferred shares | ($23) | ($42) | ($55) | ($54) | ($279) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Convertible Preferred Shares and Shareholders' Equity (Deficit) (USD $) | Total | Series A Convertible Preferred Shares [Member] | Series B Convertible Preferred Shares [Member] | Series B-1 Convertible Preferred Shares [Member] | Series B-2 Convertible Preferred Shares [Member] | Subscription Receivable [Member] | Preferred Stock [Member] | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Statutory Reserve [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] |
In Thousands, except Share data | ||||||||||||
Balance at Dec. 31, 2009 | ($35,132) | $6,000 | $15,590 | $19,151 | $6,383 | ($42) | $47,082 | $51 | $217 | ' | $1,027 | ($36,427) |
Balance (in shares) at Dec. 31, 2009 | ' | 4,800,000 | 10,639,608 | 10,123,189 | 4,000,456 | ' | ' | 10,162,855 | ' | ' | ' | ' |
Issuance of ordinary shares in connection with share option exercises, Value | 5 | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' |
Issuance of ordinary shares in connection with share option exercises, Shares | ' | ' | ' | ' | ' | ' | ' | 14,166 | ' | ' | ' | ' |
Vesting of ordinary shares issued for early exercised options | 30 | ' | ' | ' | ' | ' | ' | 2 | 28 | ' | ' | ' |
Vesting of ordinary shares issued for early exercised options, Shares | ' | ' | ' | ' | ' | ' | ' | 130,000 | ' | ' | ' | ' |
Issuance of Series B-2 convertible preferred share in connection with warrant exercises | 0 | ' | ' | ' | 3,538 | ' | 3,538 | ' | ' | ' | ' | ' |
Issuance of Series B-2 convertible preferred share in connection with warrant exercises, Shares | ' | ' | ' | ' | 1,239,227 | ' | ' | ' | ' | ' | ' | ' |
Collection of Series B-2 convertible preferred shares consideration | 0 | ' | ' | ' | ' | 42 | 42 | ' | ' | ' | ' | ' |
Accretion for convertible preferred shares | -2,513 | ' | 960 | 1,274 | 279 | ' | 2,513 | ' | -1,028 | ' | ' | -1,485 |
Share-based compensation | 778 | ' | ' | ' | ' | ' | ' | ' | 778 | ' | ' | ' |
Foreign currency translation adjustment | 276 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 276 | ' |
Net income (loss) for the period | -8,543 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,543 |
Balance at Dec. 31, 2010 | -45,099 | 6,000 | 16,550 | 20,425 | 10,200 | 0 | 53,175 | 53 | 0 | 0 | 1,303 | -46,455 |
Balance (in shares) at Dec. 31, 2010 | ' | 4,800,000 | 4,255,843 | 4,049,276 | 2,839,409 | ' | ' | 4,209,306 | ' | ' | ' | ' |
Issuance of ordinary shares in connection with share option exercises, Value | 43 | ' | ' | ' | ' | ' | ' | 1 | 42 | ' | ' | ' |
Issuance of ordinary shares in connection with share option exercises, Shares | ' | ' | ' | ' | ' | ' | ' | 61,333 | ' | ' | ' | ' |
Vesting of ordinary shares issued for early exercised options | 17 | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' |
Vesting of ordinary shares issued for early exercised options, Shares | ' | ' | ' | ' | ' | ' | ' | 23,000 | ' | ' | ' | ' |
Accretion for convertible preferred shares | -1,147 | ' | 470 | 623 | 54 | ' | 1,147 | ' | -690 | ' | ' | -457 |
Share-based compensation | 631 | ' | ' | ' | ' | ' | ' | ' | 631 | ' | ' | ' |
Foreign currency translation adjustment | 507 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 507 | ' |
Appropriations to statutory reserves | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 610 | ' | -610 |
Net income (loss) for the period | 4,972 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,972 |
Balance at Dec. 31, 2011 | -40,076 | 6,000 | 17,020 | 21,048 | 10,254 | 0 | 54,322 | 54 | 0 | 610 | 1,810 | -42,550 |
Balance (in shares) at Dec. 31, 2011 | ' | 4,800,000 | 4,255,843 | 4,049,276 | 2,839,409 | 0 | ' | 4,293,639 | 0 | ' | ' | ' |
Issuance of ordinary shares in connection with share option exercises, Value | 68 | ' | ' | ' | ' | ' | ' | 1 | 67 | ' | ' | ' |
Issuance of ordinary shares in connection with share option exercises, Shares | ' | ' | ' | ' | ' | ' | ' | 106,220 | ' | ' | ' | ' |
Vesting of ordinary shares issued for early exercised options | 9 | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' |
Vesting of ordinary shares issued for early exercised options, Shares | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' |
Accretion for convertible preferred shares | -55 | ' | ' | ' | 55 | ' | 55 | ' | -55 | ' | ' | ' |
Share-based compensation | 989 | ' | ' | ' | ' | ' | ' | ' | 989 | ' | ' | ' |
Foreign currency translation adjustment | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Appropriations to statutory reserves | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 130 | ' | -130 |
Net income (loss) for the period | 18,281 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,281 |
Balance at Dec. 31, 2012 | -20,783 | 6,000 | 17,020 | 21,048 | 10,309 | 0 | 54,377 | 55 | 1,010 | 740 | 1,811 | -24,399 |
Balance (in shares) at Dec. 31, 2012 | ' | 4,800,000 | 4,255,843 | 4,049,276 | 2,839,409 | ' | ' | 4,403,859 | ' | ' | ' | ' |
Issuance of ordinary shares in connection with share option exercises, Value | 64 | ' | ' | ' | ' | ' | ' | 3 | 61 | ' | ' | ' |
Issuance of ordinary shares in connection with share option exercises, Shares | ' | ' | ' | ' | ' | ' | ' | 251,166 | ' | ' | ' | ' |
Vesting of ordinary shares issued for early exercised options | 5 | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' |
Vesting of ordinary shares issued for early exercised options, Shares | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' |
Accretion for convertible preferred shares | -23 | ' | ' | ' | 23 | ' | 23 | ' | -23 | ' | ' | ' |
Share-based compensation | 2,462 | ' | ' | ' | ' | ' | ' | ' | 2,462 | ' | ' | ' |
Foreign currency translation adjustment | 337 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 337 | ' |
Net income (loss) for the period | 16,813 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,813 |
Balance at Sep. 30, 2013 | ($1,125) | $6,000 | $17,020 | $21,048 | $10,332 | $0 | $54,400 | $58 | $3,515 | $740 | $2,148 | ($7,586) |
Balance (in shares) at Sep. 30, 2013 | ' | 4,800,000 | 4,255,843 | 4,049,276 | 2,839,409 | ' | ' | 4,660,025 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Cash flows from operating activities | ' | ' | ' | ' | ' |
Net income (loss) | $16,813 | $14,594 | $18,281 | $4,972 | ($8,543) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | 1,915 | 644 | 1,240 | 583 | 813 |
Share-based compensation | 2,462 | 682 | 989 | 631 | 778 |
Deferred income taxes | 2 | 61 | 77 | -660 | -22 |
Inventory write-downs | 414 | 204 | 522 | 545 | 1,561 |
Fair value changes in warrant liability | 0 | 0 | 0 | 0 | 37 |
Write-down for prepaid expenses and other current assets | 0 | 0 | 0 | 0 | 755 |
Exchange loss (gain) | 320 | -61 | 126 | 495 | 269 |
Changes in assets and liabilities: | ' | ' | ' | ' | ' |
Accounts receivable | -2,510 | -1,492 | -1,979 | -4,433 | 3,624 |
Inventories | 957 | -381 | -4,654 | -5,140 | 437 |
Prepaid expenses and other current assets | -488 | 7 | -129 | 41 | -823 |
Accounts payable | 1,615 | -2,717 | -3,139 | 4,146 | -396 |
Income tax payable | 1,154 | 922 | 1,092 | 3,296 | 76 |
Deferred margin, net | 345 | -4,139 | -3,947 | 4,319 | -1,151 |
Other payables and accruals | 103 | -2,255 | 925 | 2,392 | 1,648 |
Net cash provided by (used in) operating activities | 23,102 | 6,069 | 9,404 | 11,187 | -937 |
Cash flows from investing activities | ' | ' | ' | ' | ' |
Purchases of property and equipment | -1,160 | -1,509 | -2,109 | -648 | -734 |
Purchase of intangible assets | -484 | -950 | -1,926 | -159 | -90 |
Purchase of short-term investments | -33,190 | -6,398 | -11,232 | 0 | 0 |
Proceeds from maturities of short-term investments | 33,453 | 3,154 | 4,764 | 0 | 0 |
Net cash provided by (used in) investing activities | -1,381 | -5,703 | -10,503 | -807 | -824 |
Cash flows from financing activities | ' | ' | ' | ' | ' |
Proceeds from exercise of options | 64 | 12 | 68 | 43 | 5 |
Proceeds from early exercise of options | 11 | 0 | 0 | 18 | 0 |
Proceeds from issuance of Series B-2 convertible preferred shares | 0 | 0 | 0 | 0 | 42 |
Proceeds from exercise of warrants | 0 | 0 | 0 | 0 | 1,545 |
Proceeds from short-term loans | 0 | 1,578 | 1,578 | 3,087 | 3,843 |
Repayment for short-term loans | -1,591 | -2,056 | -2,056 | -3,784 | -3,020 |
Cash paid for initial public offering cost | -421 | 0 | -143 | 0 | 0 |
Net cash provided by (used in) financing activities | -1,937 | -466 | -553 | -636 | 2,415 |
Effect of exchange rate changes on cash | -183 | -44 | -111 | 281 | 131 |
Net increase (decrease) in cash and cash equivalents | 19,601 | -144 | -1,763 | 10,025 | 785 |
Cash and cash equivalents at beginning of period | 21,580 | 23,343 | 23,343 | 13,318 | 12,533 |
Cash and cash equivalents at end of period | 41,181 | 23,199 | 21,580 | 23,343 | 13,318 |
Supplemental Cash Flow Information | ' | ' | ' | ' | ' |
Income taxes paid | 554 | 0 | 62 | 0 | 0 |
Interest paid | 10 | 79 | 103 | 147 | 112 |
Non-cash Investing and Financing Activities | ' | ' | ' | ' | ' |
Accounts payable for acquisition of property and equipment | 59 | 70 | 87 | 2 | 0 |
Accounts payable for acquisition of intangible assets | 0 | 0 | 0 | 0 | 99 |
Vesting of ordinary shares issued for early exercised options | 5 | 9 | 9 | 17 | 30 |
Series B-2 convertible preferred shares issued upon warrant exercise | 0 | 0 | 0 | 0 | 1,989 |
Accrued initial public offering cost | $2,676 | $0 | $140 | $0 | $0 |
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 | |||||||||||||||||||||
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. As of December 31, 2011 and 2012 and September 30, 2013, the Company had 306, 418 and 459 employees, respectively, the significant majority of which are based in China. | |||||||||||||||||||||
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. | |||||||||||||||||||||
a. Basis of Presentation | |||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All intercompany transactions have been eliminated upon consolidation. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s fiscal year end is December 31. | |||||||||||||||||||||
The unaudited consolidated financial statements and related footnotes have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of the Company’s management, reflect all adjustments, which consist only of normal recurring adjustments, necessary for the fair statement of those consolidated financial statements and related footnotes for interim periods. | |||||||||||||||||||||
All share-related disclosures, including par value, share price, number of ordinary shares, preferred shares, share options, restricted shares, and warrants, exercise prices of share options, restricted shares, and warrants and related fair value per share, and net income (loss) per share calculations, have been recast to reflect the 2.5-for-1 reverse share split (See Note 16) for all periods presented. | |||||||||||||||||||||
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 $46.9 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 $2.6 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 amounts were reclassified as additional paid-in capital. As these transactions occurred after September 30, 2013, they are not reflected in the unaudited consolidated financial statements as of and for the nine months period ended September 30, 2013. See Note 18 for discussion of the unaudited pro forma information. | |||||||||||||||||||||
c. Use of Estimates | |||||||||||||||||||||
The preparation of 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. | |||||||||||||||||||||
d. Cash and Cash Equivalents | |||||||||||||||||||||
The Company considers all cash on demand and time deposits with original maturities of less than three months to be cash and cash equivalents. | |||||||||||||||||||||
e. Short-term Investments | |||||||||||||||||||||
Highly liquid investments with original maturities of greater than three months and less than one year are classified as short-term investments. For investments in financial instruments with variable interest rates indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and remeasured these investments subsequently at fair value. Changes in the fair value are reflected as interest income in the consolidated statements of operations and comprehensive income (loss). | |||||||||||||||||||||
The Company has revised the consolidated statements of cash flows for the year ended December 31, 2012 to present investment income of $141 as an operating cash inflow versus as an investing item. The impact of this revision is not material to the Company’s previously reported operating or investing cash flows, and had no impact on total cash flows. | |||||||||||||||||||||
f. Fair Market Value of Financial Instruments | |||||||||||||||||||||
Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. | |||||||||||||||||||||
The Company applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: | |||||||||||||||||||||
Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. | |||||||||||||||||||||
Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. | |||||||||||||||||||||
Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||||||
The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. | |||||||||||||||||||||
The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. | |||||||||||||||||||||
When available, the Company uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Company will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. | |||||||||||||||||||||
The carrying amount 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 fair market value of outstanding warrants that were exercised to purchase convertible preferred shares in June 2010 was classified as Level 3 financial instruments. | |||||||||||||||||||||
There were no financial assets and liabilities classified as Level 3 financial instruments as of December 31, 2011 and 2012 and September 30, 2013 (unaudited). | |||||||||||||||||||||
The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy as of December 31, 2011: | |||||||||||||||||||||
Items | As of | Fair value measurements at reporting date using | |||||||||||||||||||
December 31, | |||||||||||||||||||||
2011 | Quoted Prices | Significant | Significant | ||||||||||||||||||
in Active Markets | Other | Unobservable | |||||||||||||||||||
for Identical Assets | Observable | Inputs | |||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
Cash | $ | 16,438 | $ | 16,438 | $ | — | $ | — | |||||||||||||
Time deposits with the maturity term below 3 months | 6,905 | 6,905 | — | — | |||||||||||||||||
$ | 23,343 | $ | 23,343 | $ | — | $ | — | ||||||||||||||
The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy as of December 31, 2012: | |||||||||||||||||||||
Items | As of | Fair value measurements at reporting date using | |||||||||||||||||||
December 31, | |||||||||||||||||||||
2012 | Quoted Prices | Significant | Significant | ||||||||||||||||||
in Active Markets | Other | Unobservable | |||||||||||||||||||
for Identical Assets | Observable | Inputs | |||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
Cash | $ | 12,175 | $ | 12,175 | $ | — | $ | — | |||||||||||||
Time deposits with the maturity term below 3 months | 9,405 | 9,405 | — | — | |||||||||||||||||
Short-term investments | 6,472 | — | 6,472 | — | |||||||||||||||||
$ | 28,052 | $ | 21,580 | $ | 6,472 | $ | — | ||||||||||||||
The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy as of September 30, 2013 (unaudited): | |||||||||||||||||||||
As of | Fair value measure at reporting date using | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2013 | Quoted Prices | Significant Other | Significant | ||||||||||||||||||
in Active Markets | Observable Inputs | Unobservable | |||||||||||||||||||
for Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Cash | $ | 27,414 | $ | 27,414 | $ | — | $ | — | |||||||||||||
Bank investment products readily convertible within the maturity term below 3 months | 9,759 | — | 9,759 | — | |||||||||||||||||
Time deposits with the maturity term below 3 months | 4,008 | 4,008 | — | — | |||||||||||||||||
Time deposits 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 December 31, 2012, and September 30, 2013, the investments measured at fair value by level 2 are issued by banks with variable interest rates indexed to performance of underlying assets, from 4.60% to 4.80% and from 3.20% (unaudited) to 4.60% (unaudited), respectively. 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. | |||||||||||||||||||||
For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the Company recorded in the consolidated statements of operations and comprehensive income (loss) a change in the fair value of short-term investments in the amount of $0, $0, $141, $63 (unaudited) and $344 (unaudited), respectively. | |||||||||||||||||||||
For changes in the fair value of warrant liabilities for the year ended December 31, 2010 and assumptions used for the fair value measurement of the Level 3 warrant liabilities, please see Note 9. | |||||||||||||||||||||
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 December 31, 2011 and 2012, and September 30, 2013 (unaudited), 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: | |||||||||||||||||||||
Year Ended December 31, | For the Nine Months | ||||||||||||||||||||
Ended September 30, | |||||||||||||||||||||
Revenue | 2010 | 2011 | 2012 | 2012 | 2013 | ||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Company A | 21 | % | 33 | % | 9 | % | 7 | % | 7 | % | |||||||||||
Company B | 19 | % | 9 | % | 5 | % | 6 | % | 3 | % | |||||||||||
Company C | 33 | % | 36 | % | 18 | % | 21 | % | 8 | % | |||||||||||
Company D | 0 | % | 0 | % | 50 | % | 43 | % | 71 | % | |||||||||||
As of December 31, | As of September 30, | ||||||||||||||||||||
Accounts receivable | 2011 | 2012 | 2013 | ||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Company B | 18 | % | 1 | % | 2 | % | |||||||||||||||
Company D | 68 | % | 89 | % | 79 | % | |||||||||||||||
The Company establishes credit limits for each distributor and customer and reviews such limits prior to product shipment. The Company has not experienced any credit loss from its distributors and customers. | |||||||||||||||||||||
h. Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||||||||||
The Company records its accounts receivable as invoiced. The Company performs ongoing assessments of the credit worthiness of its customers. The Company will establish an allowance for doubtful accounts based upon its assessment of the collectability of specific customer accounts. There was no allowance for doubtful accounts or any write-offs of accounts receivable for the years ended December 31, 2010, 2011 and 2012 and for the nine months ended September 30, 2012 (unaudited) and 2013 (unaudited). | |||||||||||||||||||||
i. Inventories | |||||||||||||||||||||
Inventories include work in progress and finished goods (which the Company defines as products that are completed and have passed final quality testing of production by third-party contract manufacturers, but have not necessarily been packaged), and are stated at the lower of cost or market. Cost is determined on a first-in, first- out basis. Inventory reserves are established based on estimated obsolescence or marketability of the specified inventory. The reserve that is established is equal to the difference between the cost of the inventory and the estimated realized value based upon management assumptions. These assumptions include estimates of future demand and market conditions in which the product is sold. Once the inventory is written down, a new cost basis is established and it is not reversed. | |||||||||||||||||||||
j. Property and Equipment | |||||||||||||||||||||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is provided on property and equipment over the estimated useful lives ranging from three to five years on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. Repairs and maintenance are charged to expense as incurred. Useful lives by asset category are as follows: | |||||||||||||||||||||
Asset Category | Years | ||||||||||||||||||||
Office equipment | 3-7 years | ||||||||||||||||||||
Leasehold improvements | Shorter of lease term or estimated useful life | ||||||||||||||||||||
Equipment | 3-5 years | ||||||||||||||||||||
Furniture and fixtures | 3-7 years | ||||||||||||||||||||
k. Intangible assets | |||||||||||||||||||||
Intangible assets include acquired assembled workforce and licenses and are amortized on a straight-line basis over their estimated useful lives, which range from 18 to 36 months. | |||||||||||||||||||||
l. Impairment of long-lived assets and intangible assets | |||||||||||||||||||||
For long-lived assets including amortizable intangible assets, the Company evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Company assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to be received from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. There were no impairments for long-lived assets and intangible assets for the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 (unaudited) and 2013 (unaudited). | |||||||||||||||||||||
m. Revenue Recognition | |||||||||||||||||||||
The Company’s revenue is generated from the sale of its semiconductor solutions sold into the home entertainment and cloud computing markets. In the home entertainment market, the Company sells set-top box solutions which consist of highly integrated semiconductors and embedded software. The Company does not deliver software as a separate product in connection with the sale of the Company’s solutions nor is any software upgrade offered after the sale of the Company’s solutions. | |||||||||||||||||||||
The Company recognizes revenue only when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the price to the customer is fixed or determinable, and (iv) collection of the resulting receivable is reasonably assured. | |||||||||||||||||||||
The Company sells substantially all of its set-top solutions through third-party independent distributors under agreements allowing for pricing credits and/or rights of return. It sells substantially all of its memory interface products to memory module manufacturers. For direct sales to end customers, the Company recognizes revenue at the time of shipment to its end customers when all of the above criteria are met. For sales through distributors, the Company defers the recognition of revenue and related product costs until the sale and delivery by the distributor to the end customer occurs because returns or price adjustments cannot be reliably estimated due to rapid changes in technology, consumer preferences and prices. Upon shipment to the distributor, the Company records an accounts receivable from the distributors based on the amount it is entitled to bill the distributors according to contractual arrangements. This amount less related costs of products delivered is recorded as deferred margin, net on the consolidated balance sheet (See Note 1.o below). If the distributors’ margin to the end customer is greater/lower than the distributor’s margin agreed in the contractual agreement, the distributor will receive a debit/credit for the difference. | |||||||||||||||||||||
The Company does not accept product returns from customers except for returns to satisfy warranty claims (See Note 1.p below). | |||||||||||||||||||||
n. Cost of Revenue | |||||||||||||||||||||
Cost of revenue includes cost of materials, such as wafers processed by third-party foundries, cost associated with packaging and assembly, test and shipping, cost of personnel, including share-based compensation, logistics and quality assurance, warranty cost, and write down of inventories. | |||||||||||||||||||||
o. Deferred Margin, Net | |||||||||||||||||||||
The Company defers revenue recognition on sales to distributors until its products are sold by the distributors to end customers, which is when the selling price to the distributor is fixed or determinable. Deferred margin, net is calculated as: 1) deferred revenue that is recorded based on the amount of the sale price that the Company is entitled to bill the distributor at the time of shipment to the distributor based on terms of the distribution agreement, less 2) deferred cost of revenue, representing the costs of products shipped to the distributor. | |||||||||||||||||||||
Under the Company’s contract with LQW Technology Company Limited (“LQW”), which has been a distributor for the Company’s products since October 2011 and was the Company’s largest distributor in 2012 and the nine months ended September 30, 2013, 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. Upon sale by LQW to the end customer, the Company bills the remaining sale price to LQW and recognizes this amount as revenue directly (rather than initially as deferred revenue) and also recognizes the previously deferred amount as revenue, as the sale price is fixed and determinable and all criteria for revenue recognition have been met. | |||||||||||||||||||||
For the Company’s other distributors, the Company is typically entitled to bill the entire sale price at the time of shipment, which is recorded as deferred revenue upon shipment and recognized as revenue when sales from the distributors to end customers occur. | |||||||||||||||||||||
The distributors resell the Company’s products to end customers at a range of individually negotiated prices based on a variety of factors, including the identity of the end customer and its historical relationship with the Company, the type of product sold and sales quantity. With reference to these factors, according to the terms of the Company’s distribution agreement with the distributor, the Company adjusts the original sale price to the distributor based on the actual resale price from the distributor to end customer. Primarily because of the uncertainty related to the final price, the Company defers recognition of revenue and cost of sales to distributors until the products are sold by the distributors to end customers. The amount of gross margin the Company recognizes in future periods may be more than or less than the originally recorded deferred margin, net as a result of any price adjustment. The Company records price adjustments against deferred margin, net at the time of the distributor’s sale to the end customer. | |||||||||||||||||||||
For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the total net price adjustments were a downward adjustment of $1,424, or 4.9% of total revenue, an upward adjustment of $341, or 0.7% of total revenue, and a downward adjustment of $256, or 0.3% of total revenue, a downward adjustment of $195 (unaudited), or 0.4% of total revenue and a downward adjustment of $453 (unaudited), or 0.6% of total revenue, respectively. The decreasing trend in total price adjustments was primarily due to increased sales of solutions that had relatively stable pricing and an increasing proportion of sales to LQW for which the majority of the sale price was billed at the time LQW completed its sales to the end customer. For the portion of sales to LQW that the Company bills at the time LQW completes the sale to the end customer, the Company records the billed amount directly to revenue. Therefore, no price adjustment is necessary. | |||||||||||||||||||||
Deferred cost of revenue, a component of deferred margin, net, is stated at the lower of cost or market value. The Company evaluates whether its deferred cost of revenue has been impaired based on expected net cash flows to be received for the deferred items. There was no impairment for deferred cost of revenue for the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 (unaudited) and 2013 (unaudited). | |||||||||||||||||||||
p. Warranty | |||||||||||||||||||||
The Company provides a one-year product warranty. The Company establishes a reserve for the estimated cost of the product warranty at the time revenue is recognized. The reserves established are regularly monitored based upon historical experiences and any actual claims are charged against the reserve. Warranty reserves are recorded as a cost of net revenue. The warranty cost incurred during the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013 were $211, $75, $255, $37 (unaudited) and $128 (unaudited), respectively. | |||||||||||||||||||||
q. Research and Development Expense | |||||||||||||||||||||
Research and development costs are expensed when incurred and consist primarily of personnel-related expenses, including salaries, bonuses, share-based compensation and employee benefits. Research and development expense also includes new product engineering mask costs, prototype integrated circuit packaging and test costs, computer-aided design software license costs, intellectual property license costs, reference design development costs, development testing and evaluation costs and depreciation expense. | |||||||||||||||||||||
r. Government Funded Research and Development Projects | |||||||||||||||||||||
The Company participates in research and development projects which are funded by the People’s Republic of China (“PRC”) government under agreed upon written agreements. Under these government funded projects, the Company records the government funds as accrued liabilities when received and such funds are subsequently recognized as a reduction to expenses in the period when the Company has reasonable assurance that it has complied with the conditions attached to the agreement. This is typically after the Company passes a review process. If an agreement does not carry any conditions, the Company records the amount as a reduction of research and development expense in the period the cash is received. For government funds specifically approved for the purchase of depreciable assets, the related funds received are recorded as a reduction to the carrying value of the related assets. For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the Company recorded $0, $0, $1,025, $1,025 (unaudited) and $396 (unaudited) government funding as a deduction to expense, respectively. For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 (unaudited) and 2013 (unaudited), the Company has not incurred or recorded any reduction to the carrying value of the related assets. As of December 31, 2011 and 2012 and September 30, 2013, the Company has recorded an accrued liability for cash funding received from the PRC government of $3,273, $3,055, and $3,893 (unaudited), 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. | |||||||||||||||||||||
s. Operating Leases | |||||||||||||||||||||
The Company records rent expense on a straight-line basis over the lease term. Any difference between rent expensed and rent paid is recorded as deferred rent. | |||||||||||||||||||||
t. Share-Based Compensation | |||||||||||||||||||||
The Company has adopted a share incentive plan under which options to purchase ordinary shares (“Share Options”) and Restricted Share Awards (“RSA”) have been granted to employees, consultants and directors. Under the plan, the Company is authorized to issue equity awards equal to 6,566,544 ordinary shares as of December 31, 2012 and September 30, 2013 (unaudited), respectively. Share Options granted expire ten years from the date of grant and generally vest over four years, with 25% on the first anniversary of the date of grant and monthly thereafter over the remaining vesting period. RSAs have various vesting periods determined by the plan administrator, and generally vest over four years, with 25% on each anniversary of the vesting commence date. | |||||||||||||||||||||
The Company recognizes a compensation expense for Share Options and RSAs granted to employees based on their estimated fair value on the grant date on a straight-line basis over the requisite service period, which is the period during which the employee is required to provide services in exchange for the award. The Company uses the Black-Scholes option pricing model to determine the fair value of the Share Options granted and RSA’s fair value is determined based on the fair value of the Company’s ordinary shares on grant date. | |||||||||||||||||||||
The fair value of options granted to non-employees is determined using the Black-Scholes option pricing model. The fair value of unvested options and restricted shares granted to non-employees is re-measured at each reporting period until the options and restricted shares are fully vested. | |||||||||||||||||||||
u. Sales, General and Administrative Expense | |||||||||||||||||||||
Sales, general and administrative expense primarily includes personnel-related expenses, including salaries, bonuses, share-based compensation and employee benefits. Sales, general and administrative expense also includes field application engineering support, commissions to independent sales representatives, travel costs, professional and consulting fees, legal fees, trade shows, depreciation expense and occupancy costs. | |||||||||||||||||||||
v. Income Taxes | |||||||||||||||||||||
The Company accounts for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recorded for the tax consequences attributable to the differences between the carrying amounts of existing assets and liabilities in the financial statements and their respective tax basis, and operating loss carry- forwards. Deferred tax assets and liabilities are measured using tax rates enacted and expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. | |||||||||||||||||||||
Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Company considers factors including future reversals of existing taxable temporary differences, future profitability and tax planning strategies. If events were to occur in the future that would allow the Company to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Company to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. | |||||||||||||||||||||
The Company applies the authoritative guidance for the accounting for uncertainty in income taxes. The guidance requires that the tax effect of a position be recognized only if it is “more likely than not” to be sustained based solely on the technical merits of tax laws and regulations as of the reporting date. The Company assesses its tax position and benefits by evaluating numerous factors which may require periodic adjustment. The Company’s financial statements reflect only those tax positions that are more likely than not to be sustained under examination. | |||||||||||||||||||||
w. Comprehensive Income (Loss) | |||||||||||||||||||||
Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Other comprehensive income (loss) includes certain changes in equity that are excluded from net income (loss), such as the differences for translation of subsidiaries’ financial statements where the United States dollar (“USD”) is not their functional currency. | |||||||||||||||||||||
x. Net Income (Loss) Per Share | |||||||||||||||||||||
The Company follows the authoritative guide that establishes a two class method for calculating net income (loss) per share. Under the two class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. The guidance requires earnings available to ordinary shareholders, after deducting preferred shares dividends, be allocated between ordinary and preferred shareholders based on each shareholders’ respective rights to dividends, whether or not declared. Basic net income (loss) is calculated by dividing net income (loss) allocable to ordinary shareholders by the weighted average number of ordinary shares outstanding for the period. Diluted net income (loss) per share is calculated under the as-if-converted method unless the conversion of the preferred shares is anti-dilutive to basic net income per share. Diluted net income (loss) per share is calculated by dividing the net income (loss) allocable to ordinary shareholders by the weighted average number of ordinary shares outstanding, adjusted for the effects of potentially dilutive ordinary shares, which are comprised of share options, restricted shares and convertible preferred shares. The guidance does not require the presentation of basic and diluted net income (loss) per share for securities other than ordinary shares, therefore net income (loss) per share pertain only to the Company’s ordinary shares. | |||||||||||||||||||||
y. Foreign Currency Translation | |||||||||||||||||||||
The functional currency of the Company and its subsidiaries incorporated in the U.S. and Cayman Islands is the USD. The functional currency of the Company’s three subsidiaries incorporated in Hong Kong is USD as i) two of them, Montage Semiconductor Hong Kong Company Limited and Montage Technology Hong Kong Company Limited, are holding companies with limited cash flows and their cash, paid-in capital and long-term investment are denominated in USD and ii) Montage Technology Company Limited (“MT Company”) historically was responsible for a majority of sales and purchases with external third parties and other group companies. MT Company enters into sale and purchase contracts in USD and settles related receivables and payables in USD. In addition, inter- company charges between MT Company and the Company or its subsidiaries are also denominated and settled in USD. The Company concluded that the primary economic environment in which MT Company operates is in USD. The functional currency of the Company’s subsidiaries incorporated in the PRC, which are mainly for research and development activities of the Company, is the Renminbi (“RMB”) as a majority of their purchases and research and development expenses are denominated and settled in RMB. The functional currency of the Company’s subsidiary incorporated in Taiwan is Taiwan dollars. After the Company’s subsidiary incorporated in Macao was established in June 2013, substantially all of the business transaction under MT Company described above is being conducted by the subsidiary in Macao. The Company determined that the functional currency for the subsidiary in Macao is USD as the primary economic environment in which it operates is in USD. | |||||||||||||||||||||
Monetary assets and liabilities in currency denomination other the functional currency are translated into the functional currency at the rate of exchange in effect at the balance sheet date. Transactions in currencies other than the functional currency during the reporting period are converted into the functional currency at the applicable exchange rate on the day the transaction occurred. Gains and losses resulting from the translation are included in other income (expense), net. For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, foreign exchange loss (gain) was $269, $495, $126, $(61) (unaudited) and $320 (unaudited), respectively. | |||||||||||||||||||||
The Company has chosen the USD as the reporting currency. For the subsidiaries whose functional currency is not the USD, their assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates, and revenues, and expenses, gains, and losses are translated using the average exchange rate for the reporting period. Foreign currency translation adjustments are accounted for as accumulated comprehensive income, which is a component of shareholders’ deficit. | |||||||||||||||||||||
z. Appropriations to Statutory Reserves | |||||||||||||||||||||
In accordance with the relevant PRC regulations, the Company’s subsidiaries in the PRC are required to allocate at least 10% of their after-tax profit, after the recovery of accumulated deficit reported under PRC accounting standards, to the general reserve until the general reserve has reached 50% of the registered capital of each subsidiary in PRC. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances, or cash dividends. For the years ended December 31, 2010, 2011 and 2012 and for the nine months ended September 30, 2012 and 2013, the appropriations to statutory reserves for profit making subsidiaries in PRC were $0, $610, $130, $0 (unaudited) and $0 (unaudited), respectively. | |||||||||||||||||||||
aa. Employee Benefit Plan | |||||||||||||||||||||
The Company’s subsidiaries incorporated in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company’s subsidiaries in PRC to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations. The Company’s subsidiaries in the PRC have no further commitments beyond their monthly contributions. For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the Company’s subsidiaries in the PRC contributed a total of $1,111, $1,558, $2,339, $1,692 (unaudited) and $2,327 (unaudited), respectively, to these funds. | |||||||||||||||||||||
The Company’s subsidiaries in Hong Kong and Taiwan contribute to pension funds administrated by independent third parties and have no further payment obligations once the contributions have been paid. The contributions to the schemes are based on a fixed percentage of the employees’ relevant income per month and are expensed as incurred. The Company has no legal or constructive obligation to pay further contributions if the funds do not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the Company’s subsidiaries in Hong Kong and Taiwan contributed a total of $0, $0, $10, $0 (unaudited) and $88 (unaudited), respectively, to these funds. | |||||||||||||||||||||
The Company’s subsidiary in the United States does not participate in any pension or similar employee saving plans. | |||||||||||||||||||||
bb. Recent Accounting Pronouncements | |||||||||||||||||||||
In December 2011, the FASB issued ASU 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This update requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the statements of financial position as well as instruments and transactions executed under a master netting or similar arrangement and was issued to enable users of financial statements to understand the effects or potential effects of those arrangements on their financial position. This update is required to be applied retrospectively and is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of this update did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
In July 2012, the FASB issued ASU 2012-02, “Intangibles—Goodwill and Other: Testing Indefinite Lived Intangible Assets for Impairment.” The update applies to all entities, both public and nonpublic, that have indefinite-lived intangible assets, other than goodwill, reported in their financial statements. Per the update, an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if financial statements for the most recent annual or interim period have not yet been issued. The adoption of this update did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This update does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, this update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This update is effective prospectively for reporting periods beginning after December 15, 2012 for public entities. The adoption of this update did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
In March 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”. This update provides that when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For an equity method investment that is a foreign entity, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. However, this treatment does not apply to an equity method investment that is not a foreign entity. In those instances, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. Additionally, the amendments in this update clarify that the sale of an investment in a foreign entity includes both (1) events that result in the loss of a controlling financial interest in a foreign entity (that is, irrespective of any retained investment) and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. This update is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company is currently evaluating the impact on its financial statements of adopting this update. | |||||||||||||||||||||
On April 22, 2013, the FASB issued Accounting Standards Update No. 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. This guidance addresses when and how an entity should apply the liquidation basis of accounting. The amendments in this Update are being issued to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments apply to all entities that issue financial statements that are presented in conformity with U.S. GAAP except investment companies that are regulated under the Investment Company Act of 1940 (the 1940 Act). The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The adoption of this update is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
On July 18, 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (Income Taxes—Topic 740). This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. The amendments in this Update do not require new recurring disclosures. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company is currently evaluating the impact on its financial statements of adopting this update. |
Inventories
Inventories | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||||
Inventories | ' | ||||||||||||
2. Inventories | |||||||||||||
Inventories consist of the following: | |||||||||||||
As of December 31, | As of September 30, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
(in thousands) | (unaudited) | ||||||||||||
Work in progress | $ | 1,354 | $ | 3,665 | $ | 5,491 | |||||||
Finished goods | 5,627 | 7,451 | 4,339 | ||||||||||
$ | 6,981 | $ | 11,116 | $ | 9,830 | ||||||||
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, 2011 and 2012, respectively that was previously included in work in progress. The impact of this revision had no impact on total inventory balances. | |||||||||||||
For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the Company recorded inventory write-downs of $1,561, $545, $522, $204 (unaudited) and $414 (unaudited), respectively, due to excess and obsolete inventory and lower of cost or market markdown. As of December 31, 2011 and 2012 and September 30, 2013, the Company has a total inventory reserve balance of $2,173, $2,406 and $1,321 (unaudited), 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 | ' | ||||||||||||
3. Prepaid Expenses and Other Current Assets | |||||||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||||||
As of December 31, | As of September 30, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
(unaudited) | |||||||||||||
Value-added tax recoverable | $ | 543 | $ | 486 | $ | 603 | |||||||
Prepaid license fees | 150 | 294 | 141 | ||||||||||
Prepayment for material purchase | 481 | 170 | 173 | ||||||||||
Rental deposits | 316 | 321 | 400 | ||||||||||
Value-added tax refundable on export sales | 56 | 306 | 489 | ||||||||||
Other prepaid expenses and other current assets | 252 | 423 | 785 | ||||||||||
$ | 1,798 | $ | 2,000 | $ | 2,591 | ||||||||
Property_and_Equipment_Net
Property and Equipment, Net | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Property and Equipment, Net | ' | ||||||||||||
4. Property and Equipment, Net | |||||||||||||
Property and equipment, net consist of the following: | |||||||||||||
As of December 31, | As of September 30, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
(in thousands) | (unaudited) | ||||||||||||
Office and other equipment | $ | 2,103 | $ | 3,193 | $ | 3,862 | |||||||
Furniture and fixtures | 389 | 475 | 663 | ||||||||||
Leasehold improvements | 512 | 1,354 | 1,665 | ||||||||||
3,004 | 5,022 | 6,190 | |||||||||||
Less: accumulated depreciation and amortization | (1,989 | ) | (2,738 | ) | (3,731 | ) | |||||||
$ | 1,015 | $ | 2,284 | $ | 2,459 | ||||||||
For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, depreciation expense was $313, $405, $742, $482 (unaudited) and $929 (unaudited), 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 | ' | ||||||||||||
5. Acquired Intangible Assets, Net | |||||||||||||
Acquired intangible assets, net consist of the following: | |||||||||||||
As of December 31, | As of September 30, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
(in thousands) | (unaudited) | ||||||||||||
Assembled workforce(1) | $ | — | $ | 1,900 | $ | 1,900 | |||||||
Technology Licenses | 150 | 150 | 116 | ||||||||||
Software | — | — | 265 | ||||||||||
Montage Macao license(2) | — | — | 129 | ||||||||||
Less: accumulated amortization | (56 | ) | (554 | ) | (1,390 | ) | |||||||
$ | 94 | $ | 1,496 | $ | 1,020 | ||||||||
For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, amortization expense was $500, $178, $498, $162 (unaudited) and $986 (unaudited), respectively. | |||||||||||||
As of December 31, 2012, the Company expects to record estimated amortization expenses of $1,285, $211, $0, $0 and $0 for the years ending December 31, 2013, 2014, 2015, 2016 and 2017, respectively. | |||||||||||||
As of September 30, 2013, the Company expects to record estimated amortization expenses of $324 (unaudited), $240 (unaudited), $24 (unaudited), $23 (unaudited) and $23 (unaudited) for the three months ended December 31, 2013 and the years ended December 31, 2014, 2015, 2016 and 2017, 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 (unaudited) | |||||||||||||
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 | ' |
6. Short-Term Loans | |
There were no short-term bank loans outstanding as of September 30, 2013 (unaudited). The short-term bank loans outstanding as of December 31, 2011 and 2012 carried a weighted average interest rate of 6.35%, and 5.88%, per annum, respectively. 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, 2011 and 2012 were all denominated in RMB. | |
The Company repaid the outstanding short-term bank loans of $795.5 and $795.5 upon maturity in January and February 2013, respectively. |
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Payables And Accruals [Abstract] | ' | ||||||||||||
Accrued Liabilities | ' | ||||||||||||
7. Accrued Liabilities | |||||||||||||
Accrued liabilities consist of the following: | |||||||||||||
As of December 31, | As of September 30, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
(in thousands) | (unaudited) | ||||||||||||
Government funding for research and development projects(1) | $ | 3,273 | $ | 3,055 | $ | 3,893 | |||||||
Accrued employee compensation and other employee expenses | 2,196 | 4,505 | 3,504 | ||||||||||
Accrued research and development expenses | 1,317 | 28 | — | ||||||||||
Accrued royalty on licensed technology | 466 | — | — | ||||||||||
Advances from customers | 141 | 230 | 267 | ||||||||||
Accrued warranty | 111 | 149 | 187 | ||||||||||
Accrued professional service fee | 33 | 497 | 3,484 | ||||||||||
Proceeds received for early exercised options | 9 | — | 8 | ||||||||||
Other accrued liabilities | 545 | 644 | 598 | ||||||||||
$ | 8,091 | $ | 9,108 | $ | 11,941 | ||||||||
-1 | For the nine months ended September 30, 2012 and 2013, the Company recorded $1,025 (unaudited) and $396 (unaudited) 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 (unaudited), 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 | ' | ||||||||||||||||||||
8. Deferred Margin, Net | |||||||||||||||||||||
Deferred margin, net consists of the following: | |||||||||||||||||||||
As of December 31, | As of September 30, | ||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||
(in thousands) | (unaudited) | ||||||||||||||||||||
Deferred revenue | $ | 12,685 | $ | 15,878 | $ | 20,146 | |||||||||||||||
Deferred cost of revenue | (7,538 | ) | (14,678 | ) | (18,601 | ) | |||||||||||||||
$ | 5,147 | $ | 1,200 | $ | 1,545 | ||||||||||||||||
The deferred revenue and deferred cost of revenue on sales to distributor activities for the years ended 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013 were as follows: | |||||||||||||||||||||
For the Years Ended December 31, | Nine Months Ended | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(in thousands) | (unaudited) | (unaudited) | |||||||||||||||||||
Balance at the beginning of the period | $ | 1,979 | $ | 828 | $ | 5,147 | $ | 5,147 | $ | 1,200 | |||||||||||
Revenue deferred upon shipment to distributors | 23,739 | 53,085 | 40,456 | 27,734 | 33,847 | ||||||||||||||||
Cost of sales deferred upon shipments to distributors | (14,933 | ) | (23,426 | ) | (31,655 | ) | (18,509 | ) | (26,952 | ) | |||||||||||
Revenue recognized upon resale from distributors to end customers | (23,780 | ) | (43,747 | ) | (37,007 | ) | (26,295 | ) | (29,126 | ) | |||||||||||
Cost of sales recognized upon resale from distributors to end customers | 15,247 | 18,066 | 24,515 | 13,126 | 23,029 | ||||||||||||||||
Price adjustments to distributors | (1,424 | ) | 341 | (256 | ) | (195 | ) | (453 | ) | ||||||||||||
Balance at the end of period | $ | 828 | $ | 5,147 | $ | 1,200 | $ | 1,008 | $ | 1,545 | |||||||||||
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 (loss) for the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013: | |||||||||||||||||||||
For the Years Ended | Nine Months Ended | ||||||||||||||||||||
December 31, | September 30, | ||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(in thousands) | (unaudited) | (unaudited) | |||||||||||||||||||
Revenue recognized upon resale from distributors to end customers (through deferred revenue) | $ | 23,780 | $ | 43,747 | $ | 37,007 | $ | 26,295 | $ | 29,126 | |||||||||||
Revenue recognized upon resale from LQW to end customers (recorded directly in revenue)(1) | — | — | 29,007 | 17,998 | 38,115 | ||||||||||||||||
Revenue recognized for the Company’s sales directly to end customers | 5,298 | 6,591 | 12,231 | 10,245 | 8,207 | ||||||||||||||||
Total | $ | 29,078 | $ | 50,338 | $ | 78,245 | $ | 54,538 | $ | 75,448 | |||||||||||
-1 | LQW has been a distributor for the Company’s products since October 2011 and no revenue was recognized through sales by LQW for the year ended December 31, 2011. As discussed in note 1n, 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 | ' | ||||||||||||||||||||||||||
9. Convertible Preferred Shares | |||||||||||||||||||||||||||
Convertible preferred shares consist of the following as of December 31, 2012: | |||||||||||||||||||||||||||
Convertible | Issuance date | Par | Subscription | Shares | Carrying | Liquidation | |||||||||||||||||||||
Preferred Shares | Value | Price | amount | Value | |||||||||||||||||||||||
Per | Per Share | ||||||||||||||||||||||||||
Share | Authorized | Outstanding | |||||||||||||||||||||||||
Series A | April 23, 2004 and | $ | 0.0125 | $ | 1.25 | 4,800,000 | 4,800,000 | $ | 6,000 | $ | 6,000 | ||||||||||||||||
31-Aug-04 | |||||||||||||||||||||||||||
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 | 0.0125 | 2.799 | (2) | 3,571,514 | 2,839,409 | 10,309 | 7,947 | |||||||||||||||||||
22-Oct-09 | |||||||||||||||||||||||||||
30-Jun-10 | |||||||||||||||||||||||||||
17,604,639 | 15,944,528 | $ | 54,377 | $ | 43,230 | ||||||||||||||||||||||
Convertible preferred shares consist of the following as of September 30, 2013 (unaudited): | |||||||||||||||||||||||||||
Convertible | Issuance date | Par | Subscription | Shares | Carrying | Liquidation | |||||||||||||||||||||
Preferred Shares | Value | Price Per | amount | Value | |||||||||||||||||||||||
Per | Share | ||||||||||||||||||||||||||
Share | Authorized | Outstanding | |||||||||||||||||||||||||
Series A | April 23, 2004 and | $ | 0.0125 | $ | 1.25 | 4,800,000 | 4,800,000 | $ | 6,000 | $ | 6,000 | ||||||||||||||||
August 31, 2004 | |||||||||||||||||||||||||||
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 | 0.0125 | 2.799 | (2) | 3,571,514 | 2,839,409 | 10,332 | 7,947 | |||||||||||||||||||
22-Oct-09 | |||||||||||||||||||||||||||
30-Jun-10 | |||||||||||||||||||||||||||
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 did not involve 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. | |||||||||||||||||||||||||||
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 (June 19, 2011 for Series B and B-1 and June 1, 2013 for Series B-2) using the effective interest rate method. Prior to the shareholders’ approval for the modification of the first possible redemption dates of the Company’s Series B, B-1 and B-2 to January 1, 2014 on August 13, 2013, the carrying value of the Series B, B-1 and B-2 convertible preferred shares had already been fully accreted to the redemption. The modification of the first possible redemption date has no impact on the accretion to Series B, B-1 and B-2’s redemption value. | |||||||||||||||||||||||||||
For the years ended December 31, 2010, 2011 and 2012, the accretion to the carrying value of Series B, B-1 and B-2 was summarized as follows: | |||||||||||||||||||||||||||
First Possible Redemption | Year Ended December 31, | ||||||||||||||||||||||||||
Date | 2010 | 2011 | 2012 | ||||||||||||||||||||||||
Series B | June 19, 2011 | $ | 905 | $ | 444 | $ | — | ||||||||||||||||||||
Series B issued upon warrant exercise | 19-Jun-11 | 55 | 26 | — | |||||||||||||||||||||||
Series B-1 | 19-Jun-11 | 1,274 | 623 | — | |||||||||||||||||||||||
Series B-2 | 1-Jun-13 | 279 | 54 | 55 | |||||||||||||||||||||||
Total | $2,513 | $ | 1,147 | $ | 55 | ||||||||||||||||||||||
For the nine months ended September 30, 2012 and 2013, the accretion to the carrying value of Series B-2 was summarized as follows: | |||||||||||||||||||||||||||
First Possible Redemption | For the Nine Months Ended | ||||||||||||||||||||||||||
Date | September 30, | ||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||||
Series B-2 | January 1, 2014 | $ | 42 | $ | 23 | ||||||||||||||||||||||
In absence of retained earnings, the accretion is charged to additional paid-in capital. Once previously recorded additional paid-in capital has been reduced to zero, further accretion charge is recorded in accumulated deficit. | |||||||||||||||||||||||||||
Warrants | |||||||||||||||||||||||||||
In connection with the Series B-2 convertible preferred share financing agreement in 2009, the Company issued warrants to purchase 1,239,227 Series B-2 convertible preferred shares at an exercise price of $1.25 prior to June 30, 2010. On June 30, 2010, the warrants were exercised in full to purchase Series B-2 and total cash consideration of $1,549 and extinguishment of warrant liabilities of $1,989 as of exercise date was recorded in the carrying value of Series B-2. | |||||||||||||||||||||||||||
The Company followed the authoritative guidance which requires liability classification for warrants issued that are exercisable into convertible preferred shares. Liability classification requires the warrants to be remeasured to their fair value for each reporting period. The warrants were exercised in 2010 and, for the year ended December 31, 2010, the Company expensed $37 reflecting the change in the fair value of the warrants recorded at the time of exercise. | |||||||||||||||||||||||||||
The Company utilized the service of an independent third party specialist to determine the fair value of the warrants, which took into consideration the underlying price of ordinary shares, a risk-free interest rate, expected term and expected volatility. Certain inputs used in the model are unobservable. As a result, the valuation of the warrant was categorized as Level 3 in accordance with ASC 820, Fair Value Measurement. | |||||||||||||||||||||||||||
In determining the fair value of the warrants, the Company applied the Black-Scholes pricing model with the following assumptions used: | |||||||||||||||||||||||||||
January 1, 2010 | |||||||||||||||||||||||||||
Expected volatility (%)(1) | 43.55 | % | |||||||||||||||||||||||||
Expected dividend yield (%)(2) | 0 | % | |||||||||||||||||||||||||
Expected term (years)(3) | 0.5 | ||||||||||||||||||||||||||
Risk-free interest rate (per annum) (%)(4) | 1.162 | % | |||||||||||||||||||||||||
-1 | The expected volatility was estimated based on the historical volatility of comparable companies in the period equal to average time to expiration. | ||||||||||||||||||||||||||
-2 | The expected dividends are considered to be zero because the Company has no history or expectation of paying dividends on its ordinary shares. | ||||||||||||||||||||||||||
-3 | The expected term was determined based on the period between the valuation date and the expiration date as the warrants are transferable. | ||||||||||||||||||||||||||
-4 | The risk-free interest rates are based on the yield of government securities with similar time duration as the expected term. | ||||||||||||||||||||||||||
For the year ended December 31, 2010, the changes in the fair value of warrant liabilities were summarized as follows: | |||||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||
Balance as of January 1, 2010 | $ | 1,952 | |||||||||||||||||||||||||
Changes in the fair value prior to warrant exercise on June 30, 2010 | 37 | ||||||||||||||||||||||||||
Transferred warrant liabilities to carrying value of Series B-2 preferred shares | (1,989 | ) | |||||||||||||||||||||||||
Balance as of December 31, 2010 | $ | — | |||||||||||||||||||||||||
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||||
10. Share-Based Compensation | |||||||||||||||||||||
The Company’s 2006 Share Incentive Plan, or 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 December 31, 2011 and 2012, and September 30, 2013, the number of ordinary shares authorized for equity award issuance under the 2006 Plan was 4,656,000, 6,566,544 and 6,566,544 (unaudited) 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 were originally 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 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 the ordinary shares, or 110% of fair market value of the ordinary shares or incentive share option grants to any 10% owner of the 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 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. | |||||||||||||||||||||
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: | |||||||||||||||||||||
Year Ended December 31, | Nine Months Ended September 30, | ||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Risk-free interest rate | 2.37%-4.53% | 1.42%-4.52% | 1.10-3.13% | 1.10-3.13% | 1.11-3.53% | ||||||||||||||||
Expected term (in years) | 6 to 10 | 6 to 10 | 6 to 10 | 6 to 10 | 6 to 10 | ||||||||||||||||
Dividend yield | — | — | — | — | — | ||||||||||||||||
Volatility | 50.21%-63.99% | 49.29%-57.46% | 39.97%-52.66% | 43.81%-52.66% | 39.69%-49.75% | ||||||||||||||||
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. | |||||||||||||||||||||
In connection with the grant of share options to all participants, the Company recorded share-based compensation of $778, $631, $989, $682 (unaudited) and $1,958 (unaudited) for the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, respectively. | |||||||||||||||||||||
From inception to September 30, 2013, the Company issued share options to certain employees and non- employees under the 2006 Plan with exercise prices below the fair value of the Company’s ordinary shares at the date of grant. The Company estimated the fair value of its ordinary shares based upon several factors, including progress and milestones attained in its business. In accordance with the requirements of ASC 718, the Company has recorded share-based compensation expense based on the fair value of share options at the date of grant or remeasurement date on a straight line basis over requisite service period. | |||||||||||||||||||||
Early Exercise of Employee Share Options | |||||||||||||||||||||
Certain share options granted under the 2006 Plan provide option holders the right to elect to exercise unvested options in exchange for restricted ordinary shares. Unvested shares, which amounted to 4,000, 0 and 7,500 (unaudited) shares as of December 31, 2011 and 2012 and September 30, 2013 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 consolidated financial statements. As of December 31, 2011 and 2012 and September 30, 2013, cash received for early exercise of options totaled $9, $0, and $8 (unaudited), respectively. | |||||||||||||||||||||
Total fair value for share options vested during the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013 was $762, $561, $860, $646 (unaudited) and $1,100 (unaudited), respectively. | |||||||||||||||||||||
The total compensation cost related to all unvested share option grants not yet recognized as of December 31, 2012 and September 30, 2013 was $4,100 and $13,091 (unaudited), respectively and the weighted- average period over which these grants are expected to vest is 3.33 years and 3.69 (unaudited) years, respectively. | |||||||||||||||||||||
Share Options to Employees and Consultants | |||||||||||||||||||||
The following table summarizes information regarding options outstanding starting from 2010 onwards: | |||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
Outstanding at December 31, 2010 | 2,037,032 | $ | 0.5 | ||||||||||||||||||
Granted | 427,200 | 2.15 | |||||||||||||||||||
Exercised | 69,333 | 0.88 | |||||||||||||||||||
Forfeited | 50,129 | 1.3 | |||||||||||||||||||
Canceled | 25,562 | 0.53 | |||||||||||||||||||
Outstanding at December 31, 2011 | 2,319,208 | 0.78 | |||||||||||||||||||
Granted | 539,920 | 8.95 | |||||||||||||||||||
Exercised | 106,220 | 0.63 | |||||||||||||||||||
Forfeited | 3,763 | 2.2 | |||||||||||||||||||
Canceled | 14,457 | 0.48 | |||||||||||||||||||
Outstanding at December 31, 2012 | 2,734,688 | $ | 2.4 | ||||||||||||||||||
Granted (unaudited) | 1,330,760 | 17.68 | |||||||||||||||||||
Exercised (unaudited) | 263,667 | 0.3 | |||||||||||||||||||
Forfeited (unaudited) | 26,019 | 10.64 | |||||||||||||||||||
Canceled (unaudited) | 4,669 | 0.99 | |||||||||||||||||||
Outstanding at September 30, 2013 (unaudited) | 3,771,093 | $ | 7.89 | 7 | $ | 28,412 | |||||||||||||||
Exercisable at September 30, 2013 (unaudited) | 3,146,996 | $ | 7.21 | 6.61 | $ | 25,571 | |||||||||||||||
Vested at September 30, 2013 (unaudited) | 1,883,245 | $ | 1.34 | 4.74 | $ | 24,225 | |||||||||||||||
Vested and expected to vest at September 30, 2013 (unaudited) | 3,611,003 | $ | 7.54 | 6.89 | $ | 28,202 | |||||||||||||||
The Company recognized share-based compensation expense for options as follows (in thousands): | |||||||||||||||||||||
Year Ended December 31, | Nine Months Ended September 30, | ||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of net revenue | $ | 31 | $ | 13 | $ | 19 | $ | 15 | $ | 30 | |||||||||||
Research and development | 358 | 356 | 497 | 347 | 715 | ||||||||||||||||
Sales, general and administrative | 389 | 262 | 473 | 320 | 1,213 | ||||||||||||||||
The following table summarizes information about share options outstanding as of December 31, 2012: | |||||||||||||||||||||
Share Options Outstanding | Share Options | ||||||||||||||||||||
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 | 1,008,800 | 3.48 | $ | 0.13 | 1,008,800 | $ | 0.13 | ||||||||||||||
$ 0.40-$1.03 | 802,980 | 6.07 | 0.98 | 752,897 | 0.98 | ||||||||||||||||
$ 2.20-$9.43 | 922,907 | 9.19 | 6.18 | 475,583 | 6.18 | ||||||||||||||||
2,734,687 | 6.16 | $ | 2.4 | 2,237,280 | $ | 1.7 | |||||||||||||||
The following table summarizes information about share options outstanding as of September 30, 2013 (unaudited): | |||||||||||||||||||||
Share Options Outstanding | Share Options | ||||||||||||||||||||
Exercisable | |||||||||||||||||||||
.Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||
Term | |||||||||||||||||||||
(in years) | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
$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 and August 13, 2013, the Company granted 317,120 and 13,500 restricted shares with non-forfeitable dividend rights under the 2006 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 Plan for the nine months ended September 30, 2013: | |||||||||||||||||||||
Number | Weighted-Average | ||||||||||||||||||||
of Shares | Grant Date Fair | ||||||||||||||||||||
Value Per Share | |||||||||||||||||||||
Outstanding at December 31, 2012 | — | $ | — | ||||||||||||||||||
Granted | 330,620 | 17.98 | |||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Forfeited | 8,200 | 17.98 | |||||||||||||||||||
Outstanding at September 30, 2013 (unaudited) | 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 (unaudited) of unrecognized compensation costs, net of forfeitures related to RSAs granted under the 2006 Plan. The unrecognized compensation cost is expected to be recognized over a weighted average period of 3.97 (unaudited) years. | |||||||||||||||||||||
In connection with the grant of the RSAs to all participants, the Company recorded share-based compensation of $504 (unaudited) for the nine months ended September 30, 2013. | |||||||||||||||||||||
The Company recognized share-based compensation expense for RSAs as follows (in thousands): | |||||||||||||||||||||
Year Ended December 31, | Nine Months Ended September 30, | ||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of net revenue | $ | — | $ | — | $ | — | $ | — | $ | 32 | |||||||||||
Research and development | — | — | — | — | 409 | ||||||||||||||||
Sales, general and administrative | — | — | — | — | 63 |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
11. Income Taxes | |||||||||||||
The Company is 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, Macao and the United States. The Company is subject to taxation in each of these territories in which it conducts business. As a result, the Company’s worldwide income will be subject to the tax rates in which its income is generated and as such its effective tax rate may fluctuate based on the geographic distribution of its earned income or losses and the applicable tax laws in which those earnings or losses were generated. | |||||||||||||
Cayman Islands | |||||||||||||
The Company is not subject to income or capital gains tax. | |||||||||||||
United States | |||||||||||||
The Company’s subsidiary incorporated in the U.S. is subject to U.S. federal income taxes at graduated tax rates from 15% to 35% and the income allocated and apportioned to California is subject to California income tax at 8.8%. | |||||||||||||
Hong Kong | |||||||||||||
The Company’s subsidiaries incorporated in Hong Kong are subject to income tax rates at 16.5% on their assessable profits. | |||||||||||||
Macao | |||||||||||||
As an offshore trading company, the Company’s subsidiary in Macao is not subject to income tax. | |||||||||||||
Taiwan | |||||||||||||
The Company’s subsidiary incorporated in Taiwan is subject to income tax rates at 17% on their assessable profits. | |||||||||||||
PRC | |||||||||||||
The generally applicable corporate income tax rate in China (referred to herein as an enterprise income tax rate) is 25%. The Company’s principal PRC operating subsidiary enjoys certain preferential tax rates due to its qualification as a qualified integrated circuit design enterprise and a high and new technology enterprise, or HNTE. As a qualified integrated circuit design enterprise, the Company’s principal PRC operating subsidiary is entitled to a two-year enterprise income tax exemption followed by a three-year 50% enterprise income tax rate reduction commencing from the first profit-making year, which was 2010. As a result, the Company’s principal PRC operating subsidiary was exempt from PRC enterprise income tax in 2010 and 2011 and enjoys a preferential 12.5% enterprise income tax from 2012 through 2014. PRC preferential tax treatments are subject to review and may be adjusted or revoked at any time in the future. | |||||||||||||
Pursuant to the PRC Corporate Income Tax Law, net operating losses can be carried forward 5 years to offset future taxable income. | |||||||||||||
Income (loss) before income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
(in thousands) | |||||||||||||
China operations | $ | 319 | $ | 5,952 | $ | 2,241 | |||||||
Non-China operations | (8,808 | ) | 1,657 | 17,268 | |||||||||
Income (loss) before income taxes | $ | (8,489 | ) | $ | 7,609 | $ | 19,509 | ||||||
Management’s intention is to indefinitely reinvest any undistributed earnings from its subsidiaries in China, Hong Kong, Taiwan, Macao and the United States. Accordingly, no provision for withholding taxes has been provided nor is it practical to determine the amount of this liability. Upon distribution of those earnings in the form of dividends or otherwise, the Company will be subject to potential withholding taxes in the above-mentioned jurisdictions. | |||||||||||||
The Company’s worldwide operating income is subject to varying rates and its consolidated effective tax rate is dependent upon the countries in which earnings or loss were realized and the tax laws in effect in each country. The Company is incorporated in the Cayman Islands with foreign subsidiaries in China, Hong Kong, Taiwan, Macao and the United States. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. The laws of the Cayman Islands also provide for the distribution of dividends without any related withholding tax imposed. | |||||||||||||
Income tax provision consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
China operations | $ | — | $ | 178 | $ | 263 | |||||||
Non-China operations | 76 | 3,119 | 888 | ||||||||||
$ | 76 | $ | 3,297 | $ | 1,151 | ||||||||
Deferred: | |||||||||||||
China operations | $ | (22 | ) | $ | (208 | ) | $ | (159 | ) | ||||
Non-China operations | — | (452 | ) | 236 | |||||||||
$ | (22 | ) | $ | (660 | ) | $ | 77 | ||||||
Provision for income taxes | $ | 54 | $ | 2,637 | $ | 1,228 | |||||||
Income tax provision differed from the amounts computed by applying the statutory income tax rate of 25% for the PRC subsidiaries to pre-tax income (loss) as a result of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Income tax at statutory rate | $ | (2,122 | ) | $ | 1,902 | $ | 4,877 | ||||||
Foreign tax rate differential | 1,619 | (670 | ) | (4,144 | ) | ||||||||
Tax holiday benefit | (374 | ) | (1,746 | ) | (161 | ) | |||||||
Change in valuation allowance | (63 | ) | (447 | ) | (75 | ) | |||||||
Provision for uncertain tax position | 814 | 3,646 | 760 | ||||||||||
Others | 180 | (48 | ) | (29 | ) | ||||||||
Provision for income taxes | $ | 54 | $ | 2,637 | $ | 1,228 | |||||||
The Company recorded an income tax provision of $1,709 (unaudited) and $980 (unaudited) for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||
The following table sets out the reconciliation of statutory income tax rate and the Company’s effective tax rate: | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Income tax at statutory rate | 25 | % | 25 | % | 25 | % | |||||||
Foreign tax rate differential | (19.07 | %) | (8.80 | %) | (21.24 | %) | |||||||
Tax holiday benefit | 4.41 | % | (22.95 | %) | (0.83 | %) | |||||||
Change in valuation allowance | 0.74 | % | (5.87 | %) | (0.38 | %) | |||||||
Provision for uncertain tax position | (9.59 | %) | 47.91 | % | 3.89 | % | |||||||
Others | (2.12 | %) | (0.63 | %) | (0.15 | %) | |||||||
Effective tax rate | (0.63 | %) | 34.66 | % | 6.29 | % | |||||||
Foreign tax rate differential mainly reflected the impact of profit or loss of the Company on the consolidated effective tax rate. The Company, which is a Cayman Islands company, is not subject to income tax and accounted for a significant portion of the Company’s consolidated profit or loss for the years ended December 31, 2010, 2011, and 2012. The Company was generating losses from its inception through 2010 due to the significant research and development expenses related to new products. The Company achieved profit in 2011 as the sale of products ramped up, and its profit continued to increase in 2012. Due primarily to the increase in the profit of the Company in 2011 and 2012, the foreign tax rate differential was (8.8%) and (21.24%) for 2011 to 2012, respectively. | |||||||||||||
The Company adopted ASC 740-270 approach for interim period tax computation and reporting. The income tax expense was $980 (unaudited) and $1,709 (unaudited) for the nine months ended September 30, 2012 and 2013, respectively. The effective tax rate for the nine months ended September 30, 2013 was 9.2% (unaudited) and was 6.3% (unaudited) in the comparable period of 2012. 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 period as a result of the implementation of the new international structure. | |||||||||||||
Tax holiday benefit was related to the Company’s subsidiary in the PRC which enjoyed a zero tax rate for the years ended December 31, 2010 and 2011. This subsidiary started to pay income tax at the rate of 12.5% for the year ended December 31, 2012. | |||||||||||||
For the year ended December 31, 2011, provision of uncertain tax position primarily comprises of a provision made for the unrecognized tax benefit of the Company’s Hong Kong subsidiary which was related to the disallowance of certain cooperative research fee as discussed below. | |||||||||||||
The aggregated amount and per ordinary share effect of the tax holiday are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
The aggregated dollar effect (in thousands) | $ | 374 | $ | 1,746 | $ | 161 | |||||||
Per ordinary share effect—basic | 0.09 | 0.41 | 0.04 | ||||||||||
Per ordinary share effect—diluted | 0.09 | 0.29 | 0.03 | ||||||||||
Temporary differences that gave rise to significant portions of the Company’s deferred tax assets and liabilities were as follows: | |||||||||||||
As of December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue, accruals and reserves | $ | 396 | $ | 681 | $ | 586 | |||||||
Depreciation and amortization | 51 | 69 | 83 | ||||||||||
Net operating loss carryforwards | 178 | 87 | 50 | ||||||||||
Total deferred tax assets | $ | 625 | $ | 837 | $ | 719 | |||||||
Less: valuation allowance | (573 | ) | (126 | ) | (51 | ) | |||||||
Deferred tax assets, net | $ | 52 | $ | 711 | $ | 668 | |||||||
Deferred tax liabilities: | |||||||||||||
Prepaid expense | $ | — | $ | — | $ | (34 | ) | ||||||
Deferred tax liabilities | $ | — | $ | — | $ | (34 | ) | ||||||
As of December 31, 2010, 2011 and 2012, the Company had deferred tax assets of $625, $837 and $719, respectively. The Company also had a valuation allowance of $573, $126, and $51 as of December 31, 2010, 2011 and 2012, respectively, attributable to management’s determination that it is more likely than not that most of the deferred tax assets will not be realized. Should it be determined that additional amounts of the net deferred tax asset will not be realized in the future, an adjustment to increase the deferred tax asset valuation allowance will be charged to income in the period such determination is made. Likewise, in the event the Company were to determine that it is more likely than not that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the valuation allowance for the deferred tax asset would increase income in the period such determination was made. | |||||||||||||
The following table summarizes the Company’s unrecognized tax benefit: | |||||||||||||
As of December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Beginning balance | $ | 1,411 | $ | 2,215 | $ | 5,851 | |||||||
Increases related to prior year tax positions | — | — | — | ||||||||||
Increases related to current year tax positions | 804 | 3,636 | 757 | ||||||||||
Ending balance | $ | 2,215 | $ | 5,851 | $ | 6,608 | |||||||
Interest and penalties of $10, $11, and $3 associated with unrecognized tax benefit were accrued for the years ended December 31, 2010, 2011 and 2012, respectively. | |||||||||||||
As of December 31, 2010, 2011 and 2012, the total amount of unrecognized tax benefit was $2,215, $5,851, and $6,608, respectively. During the 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 period. The unrecognized tax benefits of $6.9 million (unaudited) as of September 30, 2013, 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. | |||||||||||||
The major unrecognized tax benefit for 2011 was related to the potential disallowance of cooperative research fee of $17,140 recorded in the Company’s Hong Kong subsidiary’s books. The cooperative research fee was charged by the Company for the expense incurred for the reimbursement of the research and development services performed by its China subsidiaries. | |||||||||||||
According to the Hong Kong tax regulations, capital expenditure is generally non-deductible unless otherwise specified. Certain R&D expenditure is deductible provided that certain criteria are satisfied. Based on the current view of the Hong Kong tax authority, it may challenge that the cooperative research fee is capital in nature, and that it also does not satisfy the specific criteria set out in the tax regulations. Although management does not agree with the tax authority’s view, it believes that it is more likely than not that the Hong Kong tax authority will disallow such expense upon tax audit. | |||||||||||||
For the nine months ended September 30, 2013, the Company incurred additional R&D expenditure as discussed above and recorded the unrecognized tax benefit accordingly. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||
Net Income (Loss) Per Share | ' | ||||||||||||||||||||
12. Net Income (Loss) Per Share | |||||||||||||||||||||
The following shows the computation of basic and diluted net income (loss) per ordinary share: | |||||||||||||||||||||
Year Ended December 31, | Nine Months ended | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Numerator | |||||||||||||||||||||
Net income (loss) | $ | (8,543 | ) | $ | 4,972 | $ | 18,281 | $ | 14,594 | $ | 16,813 | ||||||||||
Less: Accretion to preferred shares | (2,513 | ) | (1,147 | ) | (55 | ) | (42 | ) | (23 | ) | |||||||||||
Less: Allocation of net income to participating preferred shares and restricted shares | — | (3,748 | ) | (15,112 | ) | (12,038 | ) | (13,651 | ) | ||||||||||||
Numerator for basic calculation | (11,056 | ) | 77 | 3,114 | 2,514 | 3,139 | |||||||||||||||
Undistributed earnings re-allocated to ordinary shareholders | — | 22 | 1,059 | 847 | 926 | ||||||||||||||||
Numerator for diluted calculation | $ | (11,056 | ) | $ | 99 | $ | 4,173 | $ | 3,361 | $ | 4,065 | ||||||||||
Denominator | |||||||||||||||||||||
Denominator for basic calculation, weighted-average number of shares of ordinary share outstanding | 4,157,498 | 4,260,192 | 4,319,243 | 4,303,135 | 4,618,302 | ||||||||||||||||
Dilutive effect of share option | — | 1,664,198 | 2,047,439 | 1,991,931 | 1,926,644 | ||||||||||||||||
Dilutive effect of restricted shares and awards | — | — | — | — | 12,422 | ||||||||||||||||
Denominator for diluted calculation | 4,157,498 | 5,924,390 | 6,366,682 | 6,295,066 | 6,557,368 | ||||||||||||||||
Net income (loss) per share | |||||||||||||||||||||
Basic | $ | (2.66 | ) | $ | 0.02 | $ | 0.72 | $ | 0.58 | $ | 0.68 | ||||||||||
Diluted | $ | (2.66 | ) | $ | 0.02 | $ | 0.66 | $ | 0.53 | $ | 0.62 | ||||||||||
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. According to the contractual terms of the preferred shares, the preferred shares do not have a contractual obligation to share in the losses of the Company as described in ASC 260-10-45-67. Therefore, no loss was allocated to the preferred shares in the computation of basic loss per share for the years ended December 31, 2010. | |||||||||||||||||||||
In addition, the Company granted 317,120 and 13,500 restricted shares in April 2013 and August 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 10). 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 years ended December 31, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, under two-class method for the calculation of net income (loss) per share, the noncumulative dividends of 8% of the original issuance price for each series of preferred share were $3,459, $3,459, $2,594 (unaudited) and $2,594 (unaudited), respectively, whereas the remaining undistributed earnings attributable to preferred shares on as-if- converted basis and unvested restricted shares were $289, $11,653, $9,444 (unaudited) and $11,057 (unaudited), respectively. | |||||||||||||||||||||
For the diluted net income per share calculation, the net income allocated to participating preferred shares and unvested restricted shares was decreased by $22, $1,059, $847 (unaudited) and $926 (unaudited), respectively for the years ended December, 31, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, 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. As a result, undistributed earnings re-allocated to ordinary shares were $22, $1,059, $847 (unaudited) and $926 (unaudited) respectively, for the years ended December 31, 2011 and 2012 and the nine months ended September 30, 2012 and 2013. | |||||||||||||||||||||
The following table sets forth potential shares of ordinary shares that are not included in the calculation of diluted net income (loss) per share because including them would be anti-dilutive as of the end of each period presented: | |||||||||||||||||||||
Year Ended December 31, | Nine Months Ended | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Convertible preferred shares | 15,411,033 | 16,163,598 | 16,163,598 | 16,163,598 | 16,163,598 | ||||||||||||||||
Equity awards outstanding | 1,967,598 | — | — | — | — | ||||||||||||||||
Warrants to purchase convertible preferred share | 614,521 | — | — | — | — | ||||||||||||||||
17,993,152 | 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 (loss) 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: | |||||||||||||||||||||
Year Ended December 31, | Nine Months Ended | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Equity awards outstanding | 86,650 | 93,624 | 154,906 | 417,120 | 1,726,480 |
Segment_and_Geographic_Informa
Segment and Geographic Information | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Segment and Geographic Information | ' | ||||||||||||||||||||
13. 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: | |||||||||||||||||||||
Year Ended December 31, | For the Nine Months | ||||||||||||||||||||
Ended September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(in thousands) | (unaudited) | (unaudited) | |||||||||||||||||||
Hong Kong | $ | 27,382 | $ | 48,911 | $ | 72,570 | $ | 50,002 | $ | 68,404 | |||||||||||
Asia Pacific | 581 | 44 | 1,325 | 1,236 | 2,782 | ||||||||||||||||
United States | 977 | 1,115 | 3,160 | 2,644 | 2,655 | ||||||||||||||||
Europe | 138 | 268 | 1,190 | 656 | 1,607 | ||||||||||||||||
$ | 29,078 | $ | 50,338 | $ | 78,245 | $ | 54,538 | $ | 75,448 | ||||||||||||
As of December 31, 2012 and September 30, 2013 (unaudited), 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: | |||||||||||||||||||||
Year Ended December 31, | For the Nine Months | ||||||||||||||||||||
Ended September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(in thousands) | (unaudited) | (unaudited) | |||||||||||||||||||
Home entertainment | $ | 27,991 | $ | 48,995 | $ | 73,611 | $ | 50,614 | $ | 68,371 | |||||||||||
Cloud computing market | 1,087 | 1,343 | 4,634 | 3,924 | 7,077 | ||||||||||||||||
$ | 29,078 | $ | 50,338 | $ | 78,245 | $ | 54,538 | $ | 75,448 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
14. Commitments and Contingencies | |||||||||||||||||
Future minimum lease payment under noncancelable operating leases and purchase commitments having initial terms in excess of one year as of December 31, 2012 are as follows: | |||||||||||||||||
Payment Due by Period | |||||||||||||||||
Total | Less than | 3-Jan | 5-Mar | ||||||||||||||
1 Year | Years | Years | |||||||||||||||
(in thousands) | |||||||||||||||||
Operating lease obligations | $ | 1,775 | $ | 992 | $ | 783 | $ | — | |||||||||
Purchase obligations | 1,086 | 1,086 | — | — | |||||||||||||
Total contractual obligations | $ | 2,861 | $ | 2,078 | $ | 783 | $ | — | |||||||||
Future minimum lease payment under noncancelable operating leases and purchase commitment having initial terms in excess of one year as of September 30, 2013 (unaudited) 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 December 31, 2012 and September 30, 2013 there was no unsettled or unasserted claims or litigation against the Company. Rental expenses for the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013 were $373, $489, $887, $517 (unaudited) and $917 (unaudited), respectively. |
OffBalance_Sheet_Arrangements
Off-Balance Sheet Arrangements | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Off-Balance Sheet Arrangements | ' |
15. Off-Balance Sheet Arrangements | |
As of December 31, 2010, 2011, 2012, and September 30, 2013, 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 | ' |
16. 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 (loss) 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 | ' |
17. Subsequent Events | |
Updates subsequent to August 9, 2013 (Unaudited) | |
According to the shareholders’ resolution dated August 13, 2013, the redemption availability dates of the Company’s Series B, B-1 and B-2 preferred shares were amended to January 1, 2014, respectively. | |
In conjunction with the preparation of these financial statements, an evaluation of subsequent events was performed through September 11, 2013 (unaudited), which is the date the financial statements were issued. | |
Subsequent events for the unaudited consolidated financial statement as of September 30, 2013 (Unaudited) | |
On September 25, 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 (Unaudited) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Pro Forma Balance Sheet and Net Income per Share for Conversion of Preferred Shares (Unaudited) | ' | ||||||||
18. Pro Forma Balance Sheet and Net Income per Share for Conversion of Preferred Shares (Unaudited) | |||||||||
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 had 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 year ended December 31, 2012 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 each period presented was as follows: | |||||||||
For the Years Ended | For the Nine Months | ||||||||
31-Dec-12 | Ended September 30, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Numerator: | |||||||||
Actual net income attributable to ordinary shareholders | $ | 3,114 | $ | 3,139 | |||||
Pro-forma effect of preferred shares | 15,167 | 13,674 | |||||||
Pro-forma net income attributable to ordinary shareholders—Basic and diluted | 18,281 | 16,813 | |||||||
Denominator: | |||||||||
Actual weighted average number of ordinary shares outstanding | |||||||||
Basic | 4,319,243 | 4,618,302 | |||||||
Diluted | 6,366,682 | 6,557,368 | |||||||
Pro-forma effect of preferred shares | 16,163,598 | 16,163,598 | |||||||
Denominator for pro-forma basic and diluted calculation | |||||||||
Basic | 20,482,841 | 20,781,900 | |||||||
Diluted | 22,530,280 | 22,720,966 | |||||||
Pro-forma basic and diluted net income per share attributable to ordinary shareholders | |||||||||
Basic | $ | 0.89 | $ | 0.81 | |||||
Diluted | $ | 0.81 | $ | 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 | ' |
19. 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 (unaudited) of the Company’s total consolidated net assets as of December 31, 2012 and September 30, 2013. 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 years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 (unaudited) and 2013 (unaudited), no dividends were declared by any of the Company’s subsidiaries. |
Additional_Information_Condens
Additional Information - Condensed Financial Statements of the Company | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||
Additional Information - Condensed Financial Statements of the Company | ' | ||||||||||||
20. Additional Information—Condensed Financial Statements of the Company | |||||||||||||
The Company is required to include the condensed financial statements of the parent company in accordance with Regulation S-X, Rule 5-04 promulgated by the United States Securities and Exchange Commission. The separate condensed financial statements of the Company as presented below have been prepared in accordance with Securities and Exchange Commission Regulation S-X Rule 5-04 and Rule 12-04 and present the Company’s investments in its subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investments in subsidiaries.” Subsidiaries’ income or losses are included as the Company’s “Share of income from subsidiaries” on the statement of income and comprehensive income (loss). | |||||||||||||
MONTAGE TECHNOLOGY GROUP LIMITED | |||||||||||||
ADDITIONAL INFORMATION OF MONTAGE TECHNOLOGY GROUP LIMITED | |||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||
(Dollars in thousands except share and per share data) | |||||||||||||
31-Dec | |||||||||||||
2011 | 2012 | ||||||||||||
Assets | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 7,211 | $ | 5,638 | |||||||||
Inventories | 3,327 | 5,871 | |||||||||||
Amount due from subsidiaries | 22,480 | 30,993 | |||||||||||
Prepaid expenses and other current assets | 166 | 333 | |||||||||||
Total current assets | 33,184 | 42,835 | |||||||||||
Investments in subsidiaries | 6,149 | 6,799 | |||||||||||
Property and equipment, net | 19 | 10 | |||||||||||
Acquired intangible asset, net | 94 | 19 | |||||||||||
Deferred offering costs | — | 283 | |||||||||||
Total assets | $ | 39,446 | $ | 49,946 | |||||||||
Liabilities, Convertible Preferred Shares and Shareholders’ Deficit | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 3,623 | $ | 1,546 | |||||||||
Amount due to subsidiaries | 17,029 | 14,162 | |||||||||||
Accrued liabilities | 23 | 241 | |||||||||||
Deferred margin, net | 4,484 | 356 | |||||||||||
Income tax payable | 41 | 47 | |||||||||||
Total current liabilities | 25,200 | 16,352 | |||||||||||
Total liabilities | 25,200 | 16,352 | |||||||||||
Commitments and contingencies (Note 13) | |||||||||||||
Convertible Preferred Share: | |||||||||||||
Series A convertible preferred shares, $0.0125 par value; 4,800,000 shares authorized; 4,800,000 issued and outstanding as of December 31, 2011 and 2012 (Liquidation value: 6,000 and 6,000 as of December 31, 2011 and 2012) | 6,000 | 6,000 | |||||||||||
Series B convertible preferred shares, $0.0125 par value; 4,681,416 shares authorized; 4,255,843 issued and outstanding as of December 31, 2011 and 2012 (Liquidation value: 13,092, and 13,092 as of December 31, 2011 and 2012) | 17,020 | 17,020 | |||||||||||
Series B-1 convertible preferred shares, $0.0125 par value; 4,551,709 shares authorized; 4,049,276 issued and outstanding as of December 31, 2011 and 2012 (Liquidation value: 16,191 and 16,191 as of December 31, 2011 and 2012) | 21,048 | 21,048 | |||||||||||
Series B-2 convertible preferred shares, $0.0125 par value; 3,571,514 shares authorized; 2,839,409 issued and outstanding as of December 31, 2011 and 2012 respectively (Liquidation value: 7,947 and 7,947 as of December 31, 2011 and 2012) | 10,254 | 10,309 | |||||||||||
Shareholders’ deficit: | |||||||||||||
Ordinary Shares, $0.0125 par value; 26,804,639 shares authorized; 4,293,639, and 4,403,859 and issued and outstanding at December 31, 2011 and 2012, respectively | 54 | 55 | |||||||||||
Additional paid-in capital | — | 1,010 | |||||||||||
Accumulated comprehensive income | 1,810 | 1,811 | |||||||||||
Statutory reserve | 610 | 740 | |||||||||||
Accumulated deficit | (42,550 | ) | (24,399 | ) | |||||||||
Total shareholders’ deficit | (40,076 | ) | (20,783 | ) | |||||||||
Total liabilities, convertible preferred share and shareholders’ deficit | $ | 39,446 | $ | 49,946 | |||||||||
MONTAGE TECHNOLOGY GROUP LIMITED | |||||||||||||
ADDITIONAL INFORMATION OF MONTAGE TECHNOLOGY GROUP LIMITED | |||||||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
(Dollars in thousands except share and per share data) | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Revenue | $ | 5,195 | $ | 5,746 | $ | 40,702 | |||||||
Cost of revenue | (2,591 | ) | (1,619 | ) | (9,876 | ) | |||||||
Gross profit | 2,604 | 4,127 | 30,826 | ||||||||||
Operating expense: | |||||||||||||
Research and development | (8,903 | ) | (356 | ) | (13,209 | ) | |||||||
Sales, general and administrative | (315 | ) | (245 | ) | (980 | ) | |||||||
Total operating expense | (9,218 | ) | (601 | ) | (14,189 | ) | |||||||
Income (loss) from operations | (6,614 | ) | 3,526 | 16,637 | |||||||||
Interest Income (Expense), net | 10 | 31 | 60 | ||||||||||
Fair value change in warrant liability | (37 | ) | — | — | |||||||||
Equity gain (loss) from subsidiaries | (1,877 | ) | 1,430 | 1,590 | |||||||||
Income (loss) before income taxes | (8,518 | ) | 4,987 | 18,287 | |||||||||
Provision for Income tax | (25 | ) | (15 | ) | (6 | ) | |||||||
Net income (loss) | $ | (8,543 | ) | $ | 4,972 | $ | 18,281 | ||||||
Income tax represented withholding income tax on the profit from license fee charged to the Company’s subsidiary in Hong Kong. | |||||||||||||
MONTAGE TECHNOLOGY GROUP LIMITED | |||||||||||||
ADDITIONAL INFORMATION OF MONTAGE TECHNOLOGY GROUP LIMITED | |||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
(Dollars in thousands except share and per share data) | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Cash flows from operating activities | |||||||||||||
Net income (loss) | $ | (8,543 | ) | $ | 4,972 | $ | 18,281 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||
Depreciation and amortization | 515 | 185 | 84 | ||||||||||
Share-based compensation | 623 | 577 | 928 | ||||||||||
Equity in profit of subsidiaries | 1,876 | (1,431 | ) | (1,589 | ) | ||||||||
Fair value changes in warrant liability | 37 | — | — | ||||||||||
Changes in assets and liabilities: | |||||||||||||
Inventories | 4,336 | (3,327 | ) | (2,544 | ) | ||||||||
Prepaid expenses and other assets | 472 | 54 | (281 | ) | |||||||||
Amount due from subsidiaries | (415 | ) | (14,742 | ) | (8,513 | ) | |||||||
Accounts payable | (2,805 | ) | 3,623 | (2,077 | ) | ||||||||
Amount due to subsidiaries | 3,819 | 5,945 | (2,867 | ) | |||||||||
Tax payable | 25 | 16 | 6 | ||||||||||
Deferred margin, net | — | 4,484 | (4,128 | ) | |||||||||
Other payables and accruals | (222 | ) | (52 | ) | 228 | ||||||||
Net cash provided by (used in) operating activities | (282 | ) | 304 | (2,472 | ) | ||||||||
Cash flows from investing activities | |||||||||||||
Purchases of property and equipment | (16 | ) | (9 | ) | — | ||||||||
Proceeds from disposal of a subsidiary | — | — | 1,000 | ||||||||||
Purchase of intangible assets | (90 | ) | (159 | ) | — | ||||||||
Prepayment for acquisition | — | — | (26 | ) | |||||||||
Net cash provided by (used in) investing activities | (106 | ) | (168 | ) | 974 | ||||||||
Cash flows from financing activities | |||||||||||||
Proceeds from exercise of options | 5 | 43 | 68 | ||||||||||
Proceeds from early exercise of options | — | 18 | — | ||||||||||
Proceeds from issuance of Series B-2 convertible preferred shares | 42 | — | — | ||||||||||
Proceeds from exercise of warrant | 1,545 | — | — | ||||||||||
Cash paid for initial public offering cost | — | — | (143 | ) | |||||||||
Net cash provided by (used in) financing activities | 1,592 | 61 | (75 | ) | |||||||||
Effect of exchange rate changes on cash | — | — | — | ||||||||||
Net increase (decrease) in cash and cash equivalents | 1,204 | 197 | (1,573 | ) | |||||||||
Cash and cash equivalents at beginning of period | 5,810 | 7,014 | 7,211 | ||||||||||
Cash and cash equivalents at end of period | $ | 7,014 | $ | 7,211 | $ | 5,638 | |||||||
As of December 31, 2011 and 2012, there were no material contingencies, significant provisions for long- term obligations, or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. | |||||||||||||
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||||||
a. Basis of Presentation | |||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All intercompany transactions have been eliminated upon consolidation. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s fiscal year end is December 31. | |||||||||||||||||||||
The unaudited consolidated financial statements and related footnotes have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of the Company’s management, reflect all adjustments, which consist only of normal recurring adjustments, necessary for the fair statement of those consolidated financial statements and related footnotes for interim periods. | |||||||||||||||||||||
All share-related disclosures, including par value, share price, number of ordinary shares, preferred shares, share options, restricted shares, and warrants, exercise prices of share options, restricted shares, and warrants and related fair value per share, and net income (loss) per share calculations, have been recast to reflect the 2.5-for-1 reverse share split (See Note 16) for all periods presented. | |||||||||||||||||||||
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 $46.9 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 $2.6 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 amounts were reclassified as additional paid-in capital. As these transactions occurred after September 30, 2013, they are not reflected in the unaudited consolidated financial statements as of and for the nine months period ended September 30, 2013. See Note 18 for discussion of the unaudited pro forma information. | |||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||
c. Use of Estimates | |||||||||||||||||||||
The preparation of 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. | |||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||
d. Cash and Cash Equivalents | |||||||||||||||||||||
The Company considers all cash on demand and time deposits with original maturities of less than three months to be cash and cash equivalents. | |||||||||||||||||||||
Short-term Investments | ' | ||||||||||||||||||||
e. Short-term Investments | |||||||||||||||||||||
Highly liquid investments with original maturities of greater than three months and less than one year are classified as short-term investments. For investments in financial instruments with variable interest rates indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and remeasured these investments subsequently at fair value. Changes in the fair value are reflected as interest income in the consolidated statements of operations and comprehensive income (loss). | |||||||||||||||||||||
The Company has revised the consolidated statements of cash flows for the year ended December 31, 2012 to present investment income of $141 as an operating cash inflow versus as an investing item. The impact of this revision is not material to the Company’s previously reported operating or investing cash flows, and had no impact on total cash flows. | |||||||||||||||||||||
Fair Market Value of Financial Instruments | ' | ||||||||||||||||||||
f. Fair Market Value of Financial Instruments | |||||||||||||||||||||
Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. | |||||||||||||||||||||
The Company applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: | |||||||||||||||||||||
Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. | |||||||||||||||||||||
Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. | |||||||||||||||||||||
Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||||||
The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. | |||||||||||||||||||||
The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. | |||||||||||||||||||||
When available, the Company uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Company will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. | |||||||||||||||||||||
The carrying amount 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 fair market value of outstanding warrants that were exercised to purchase convertible preferred shares in June 2010 was classified as Level 3 financial instruments. | |||||||||||||||||||||
There were no financial assets and liabilities classified as Level 3 financial instruments as of December 31, 2011 and 2012 and September 30, 2013 (unaudited). | |||||||||||||||||||||
The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy as of December 31, 2011: | |||||||||||||||||||||
Items | As of | Fair value measurements at reporting date using | |||||||||||||||||||
December 31, | |||||||||||||||||||||
2011 | Quoted Prices | Significant | Significant | ||||||||||||||||||
in Active Markets | Other | Unobservable | |||||||||||||||||||
for Identical Assets | Observable | Inputs | |||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
Cash | $ | 16,438 | $ | 16,438 | $ | — | $ | — | |||||||||||||
Time deposits with the maturity term below 3 months | 6,905 | 6,905 | — | — | |||||||||||||||||
$ | 23,343 | $ | 23,343 | $ | — | $ | — | ||||||||||||||
The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy as of December 31, 2012: | |||||||||||||||||||||
Items | As of | Fair value measurements at reporting date using | |||||||||||||||||||
December 31, | |||||||||||||||||||||
2012 | Quoted Prices | Significant | Significant | ||||||||||||||||||
in Active Markets | Other | Unobservable | |||||||||||||||||||
for Identical Assets | Observable | Inputs | |||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
Cash | $ | 12,175 | $ | 12,175 | $ | — | $ | — | |||||||||||||
Time deposits with the maturity term below 3 months | 9,405 | 9,405 | — | — | |||||||||||||||||
Short-term investments | 6,472 | — | 6,472 | — | |||||||||||||||||
$ | 28,052 | $ | 21,580 | $ | 6,472 | $ | — | ||||||||||||||
The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy as of September 30, 2013 (unaudited): | |||||||||||||||||||||
As of | Fair value measure at reporting date using | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2013 | Quoted Prices | Significant Other | Significant | ||||||||||||||||||
in Active Markets | Observable Inputs | Unobservable | |||||||||||||||||||
for Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Cash | $ | 27,414 | $ | 27,414 | $ | — | $ | — | |||||||||||||
Bank investment products readily convertible within the maturity term below 3 months | 9,759 | — | 9,759 | — | |||||||||||||||||
Time deposits with the maturity term below 3 months | 4,008 | 4,008 | — | — | |||||||||||||||||
Time deposits 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 December 31, 2012, and September 30, 2013, the investments measured at fair value by level 2 are issued by banks with variable interest rates indexed to performance of underlying assets, from 4.60% to 4.80% and from 3.20% (unaudited) to 4.60% (unaudited), respectively. 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. | |||||||||||||||||||||
For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the Company recorded in the consolidated statements of operations and comprehensive income (loss) a change in the fair value of short-term investments in the amount of $0, $0, $141, $63 (unaudited) and $344 (unaudited), respectively. | |||||||||||||||||||||
For changes in the fair value of warrant liabilities for the year ended December 31, 2010 and assumptions used for the fair value measurement of the Level 3 warrant liabilities, please see Note 9. | |||||||||||||||||||||
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 December 31, 2011 and 2012, and September 30, 2013 (unaudited), 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: | |||||||||||||||||||||
Year Ended December 31, | For the Nine Months | ||||||||||||||||||||
Ended September 30, | |||||||||||||||||||||
Revenue | 2010 | 2011 | 2012 | 2012 | 2013 | ||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Company A | 21 | % | 33 | % | 9 | % | 7 | % | 7 | % | |||||||||||
Company B | 19 | % | 9 | % | 5 | % | 6 | % | 3 | % | |||||||||||
Company C | 33 | % | 36 | % | 18 | % | 21 | % | 8 | % | |||||||||||
Company D | 0 | % | 0 | % | 50 | % | 43 | % | 71 | % | |||||||||||
As of December 31, | As of September 30, | ||||||||||||||||||||
Accounts receivable | 2011 | 2012 | 2013 | ||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Company B | 18 | % | 1 | % | 2 | % | |||||||||||||||
Company D | 68 | % | 89 | % | 79 | % | |||||||||||||||
The Company establishes credit limits for each distributor and customer and reviews such limits prior to product shipment. The Company has not experienced any credit loss from its distributors and customers. | |||||||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ' | ||||||||||||||||||||
h. Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||||||||||
The Company records its accounts receivable as invoiced. The Company performs ongoing assessments of the credit worthiness of its customers. The Company will establish an allowance for doubtful accounts based upon its assessment of the collectability of specific customer accounts. There was no allowance for doubtful accounts or any write-offs of accounts receivable for the years ended December 31, 2010, 2011 and 2012 and for the nine months ended September 30, 2012 (unaudited) and 2013 (unaudited). | |||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||
i. Inventories | |||||||||||||||||||||
Inventories include work in progress and finished goods (which the Company defines as products that are completed and have passed final quality testing of production by third-party contract manufacturers, but have not necessarily been packaged), and are stated at the lower of cost or market. Cost is determined on a first-in, first-out basis. Inventory reserves are established based on estimated obsolescence or marketability of the specified inventory. The reserve that is established is equal to the difference between the cost of the inventory and the estimated realized value based upon management assumptions. These assumptions include estimates of future demand and market conditions in which the product is sold. Once the inventory is written down, a new cost basis is established and it is not reversed. | |||||||||||||||||||||
Property and Equipment | ' | ||||||||||||||||||||
j. Property and Equipment | |||||||||||||||||||||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is provided on property and equipment over the estimated useful lives ranging from three to five years on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. Repairs and maintenance are charged to expense as incurred. Useful lives by asset category are as follows: | |||||||||||||||||||||
Asset Category | Years | ||||||||||||||||||||
Office equipment | 3-7 years | ||||||||||||||||||||
Leasehold improvements | Shorter of lease term or estimated useful life | ||||||||||||||||||||
Equipment | 3-5 years | ||||||||||||||||||||
Furniture and fixtures | 3-7 years | ||||||||||||||||||||
Intangible assets | ' | ||||||||||||||||||||
k. Intangible assets | |||||||||||||||||||||
Intangible assets include acquired assembled workforce and licenses and are amortized on a straight-line basis over their estimated useful lives, which range from 18 to 36 months. | |||||||||||||||||||||
Impairment of long-lived assets and intangible assets | ' | ||||||||||||||||||||
l. Impairment of long-lived assets and intangible assets | |||||||||||||||||||||
For long-lived assets including amortizable intangible assets, the Company evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Company assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to be received from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. There were no impairments for long-lived assets and intangible assets for the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 (unaudited) and 2013 (unaudited). | |||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||
m. Revenue Recognition | |||||||||||||||||||||
The Company’s revenue is generated from the sale of its semiconductor solutions sold into the home entertainment and cloud computing markets. In the home entertainment market, the Company sells set-top box solutions which consist of highly integrated semiconductors and embedded software. The Company does not deliver software as a separate product in connection with the sale of the Company’s solutions nor is any software upgrade offered after the sale of the Company’s solutions. | |||||||||||||||||||||
The Company recognizes revenue only when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the price to the customer is fixed or determinable, and (iv) collection of the resulting receivable is reasonably assured. | |||||||||||||||||||||
The Company sells substantially all of its set-top solutions through third-party independent distributors under agreements allowing for pricing credits and/or rights of return. It sells substantially all of its memory interface products to memory module manufacturers. For direct sales to end customers, the Company recognizes revenue at the time of shipment to its end customers when all of the above criteria are met. For sales through distributors, the Company defers the recognition of revenue and related product costs until the sale and delivery by the distributor to the end customer occurs because returns or price adjustments cannot be reliably estimated due to rapid changes in technology, consumer preferences and prices. Upon shipment to the distributor, the Company records an accounts receivable from the distributors based on the amount it is entitled to bill the distributors according to contractual arrangements. This amount less related costs of products delivered is recorded as deferred margin, net on the consolidated balance sheet (See Note 1.o below). If the distributors’ margin to the end customer is greater/lower than the distributor’s margin agreed in the contractual agreement, the distributor will receive a debit/credit for the difference. | |||||||||||||||||||||
The Company does not accept product returns from customers except for returns to satisfy warranty claims (See Note 1.p below). | |||||||||||||||||||||
Cost of Revenue | ' | ||||||||||||||||||||
n. Cost of Revenue | |||||||||||||||||||||
Cost of revenue includes cost of materials, such as wafers processed by third-party foundries, cost associated with packaging and assembly, test and shipping, cost of personnel, including share-based compensation, logistics and quality assurance, warranty cost, and write down of inventories. | |||||||||||||||||||||
Deferred Margin, Net | ' | ||||||||||||||||||||
o. Deferred Margin, Net | |||||||||||||||||||||
The Company defers revenue recognition on sales to distributors until its products are sold by the distributors to end customers, which is when the selling price to the distributor is fixed or determinable. Deferred margin, net is calculated as: 1) deferred revenue that is recorded based on the amount of the sale price that the Company is entitled to bill the distributor at the time of shipment to the distributor based on terms of the distribution agreement, less 2) deferred cost of revenue, representing the costs of products shipped to the distributor. | |||||||||||||||||||||
Under the Company’s contract with LQW Technology Company Limited (“LQW”), which has been a distributor for the Company’s products since October 2011 and was the Company’s largest distributor in 2012 and the nine months ended September 30, 2013, 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. Upon sale by LQW to the end customer, the Company bills the remaining sale price to LQW and recognizes this amount as revenue directly (rather than initially as deferred revenue) and also recognizes the previously deferred amount as revenue, as the sale price is fixed and determinable and all criteria for revenue recognition have been met. | |||||||||||||||||||||
For the Company’s other distributors, the Company is typically entitled to bill the entire sale price at the time of shipment, which is recorded as deferred revenue upon shipment and recognized as revenue when sales from the distributors to end customers occur. | |||||||||||||||||||||
The distributors resell the Company’s products to end customers at a range of individually negotiated prices based on a variety of factors, including the identity of the end customer and its historical relationship with the Company, the type of product sold and sales quantity. With reference to these factors, according to the terms of the Company’s distribution agreement with the distributor, the Company adjusts the original sale price to the distributor based on the actual resale price from the distributor to end customer. Primarily because of the uncertainty related to the final price, the Company defers recognition of revenue and cost of sales to distributors until the products are sold by the distributors to end customers. The amount of gross margin the Company recognizes in future periods may be more than or less than the originally recorded deferred margin, net as a result of any price adjustment. The Company records price adjustments against deferred margin, net at the time of the distributor’s sale to the end customer. | |||||||||||||||||||||
For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the total net price adjustments were a downward adjustment of $1,424, or 4.9% of total revenue, an upward adjustment of $341, or 0.7% of total revenue, and a downward adjustment of $256, or 0.3% of total revenue, a downward adjustment of $195 (unaudited), or 0.4% of total revenue and a downward adjustment of $453 (unaudited), or 0.6% of total revenue, respectively. The decreasing trend in total price adjustments was primarily due to increased sales of solutions that had relatively stable pricing and an increasing proportion of sales to LQW for which the majority of the sale price was billed at the time LQW completed its sales to the end customer. For the portion of sales to LQW that the Company bills at the time LQW completes the sale to the end customer, the Company records the billed amount directly to revenue. Therefore, no price adjustment is necessary. | |||||||||||||||||||||
Deferred cost of revenue, a component of deferred margin, net, is stated at the lower of cost or market value. The Company evaluates whether its deferred cost of revenue has been impaired based on expected net cash flows to be received for the deferred items. There was no impairment for deferred cost of revenue for the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 (unaudited) and 2013 (unaudited). | |||||||||||||||||||||
Warranty | ' | ||||||||||||||||||||
p. Warranty | |||||||||||||||||||||
The Company provides a one-year product warranty. The Company establishes a reserve for the estimated cost of the product warranty at the time revenue is recognized. The reserves established are regularly monitored based upon historical experiences and any actual claims are charged against the reserve. Warranty reserves are recorded as a cost of net revenue. The warranty cost incurred during the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013 were $211, $75, $255, $37 (unaudited) and $128 (unaudited), respectively. | |||||||||||||||||||||
Research and Development Expense | ' | ||||||||||||||||||||
q. Research and Development Expense | |||||||||||||||||||||
Research and development costs are expensed when incurred and consist primarily of personnel-related expenses, including salaries, bonuses, share-based compensation and employee benefits. Research and development expense also includes new product engineering mask costs, prototype integrated circuit packaging and test costs, computer-aided design software license costs, intellectual property license costs, reference design development costs, development testing and evaluation costs and depreciation expense. | |||||||||||||||||||||
Government Funded Research and Development Projects | ' | ||||||||||||||||||||
r. Government Funded Research and Development Projects | |||||||||||||||||||||
The Company participates in research and development projects which are funded by the People’s Republic of China (“PRC”) government under agreed upon written agreements. Under these government funded projects, the Company records the government funds as accrued liabilities when received and such funds are subsequently recognized as a reduction to expenses in the period when the Company has reasonable assurance that it has complied with the conditions attached to the agreement. This is typically after the Company passes a review process. If an agreement does not carry any conditions, the Company records the amount as a reduction of research and development expense in the period the cash is received. For government funds specifically approved for the purchase of depreciable assets, the related funds received are recorded as a reduction to the carrying value of the related assets. For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the Company recorded $0, $0, $1,025, $1,025 (unaudited) and $396 (unaudited) government funding as a deduction to expense, respectively. For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 (unaudited) and 2013 (unaudited), the Company has not incurred or recorded any reduction to the carrying value of the related assets. As of December 31, 2011 and 2012 and September 30, 2013, the Company has recorded an accrued liability for cash funding received from the PRC government of $3,273, $3,055, and $3,893 (unaudited), 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. | |||||||||||||||||||||
Operating Leases | ' | ||||||||||||||||||||
s. Operating Leases | |||||||||||||||||||||
The Company records rent expense on a straight-line basis over the lease term. Any difference between rent expensed and rent paid is recorded as deferred rent. | |||||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||||
t. Share-Based Compensation | |||||||||||||||||||||
The Company has adopted a share incentive plan under which options to purchase ordinary shares (“Share Options”) and Restricted Share Awards (“RSA”) have been granted to employees, consultants and directors. | |||||||||||||||||||||
Under the plan, the Company is authorized to issue equity awards equal to 6,566,544 ordinary shares as of December 31, 2012 and September 30, 2013 (unaudited), respectively. Share Options granted expire ten years from the date of grant and generally vest over four years, with 25% on the first anniversary of the date of grant and monthly thereafter over the remaining vesting period. RSAs have various vesting periods determined by the plan administrator, and generally vest over four years, with 25% on each anniversary of the vesting commence date. | |||||||||||||||||||||
The Company recognizes a compensation expense for Share Options and RSAs granted to employees based on their estimated fair value on the grant date on a straight-line basis over the requisite service period, which is the period during which the employee is required to provide services in exchange for the award. The Company uses the Black-Scholes option pricing model to determine the fair value of the Share Options granted and RSA’s fair value is determined based on the fair value of the Company’s ordinary shares on grant date. | |||||||||||||||||||||
The fair value of options granted to non-employees is determined using the Black-Scholes option pricing model. The fair value of unvested options and restricted shares granted to non-employees is re-measured at each reporting period until the options and restricted shares are fully vested. | |||||||||||||||||||||
Sales, General and Administrative Expense | ' | ||||||||||||||||||||
u. Sales, General and Administrative Expense | |||||||||||||||||||||
Sales, general and administrative expense primarily includes personnel-related expenses, including salaries, bonuses, share-based compensation and employee benefits. Sales, general and administrative expense also includes field application engineering support, commissions to independent sales representatives, travel costs, professional and consulting fees, legal fees, trade shows, depreciation expense and occupancy costs. | |||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||
v. Income Taxes | |||||||||||||||||||||
The Company accounts for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recorded for the tax consequences attributable to the differences between the carrying amounts of existing assets and liabilities in the financial statements and their respective tax basis, and operating loss carry-forwards. Deferred tax assets and liabilities are measured using tax rates enacted and expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. | |||||||||||||||||||||
Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Company considers factors including future reversals of existing taxable temporary differences, future profitability and tax planning strategies. If events were to occur in the future that would allow the Company to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Company to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. | |||||||||||||||||||||
The Company applies the authoritative guidance for the accounting for uncertainty in income taxes. The guidance requires that the tax effect of a position be recognized only if it is “more likely than not” to be sustained based solely on the technical merits of tax laws and regulations as of the reporting date. The Company assesses its tax position and benefits by evaluating numerous factors which may require periodic adjustment. The Company’s financial statements reflect only those tax positions that are more likely than not to be sustained under examination. | |||||||||||||||||||||
Comprehensive Income (Loss) | ' | ||||||||||||||||||||
w. Comprehensive Income (Loss) | |||||||||||||||||||||
Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Other comprehensive income (loss) includes certain changes in equity that are excluded from net income (loss), such as the differences for translation of subsidiaries’ financial statements where the United States dollar (“USD”) is not their functional currency. | |||||||||||||||||||||
Net Income (Loss) Per Share | ' | ||||||||||||||||||||
x. Net Income (Loss) Per Share | |||||||||||||||||||||
The Company follows the authoritative guide that establishes a two class method for calculating net income (loss) per share. Under the two class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. The guidance requires earnings available to ordinary shareholders, after deducting preferred shares dividends, be allocated between ordinary and preferred shareholders based on each shareholders’ respective rights to dividends, whether or not declared. Basic net income (loss) is calculated by dividing net income (loss) allocable to ordinary shareholders by the weighted average number of ordinary shares outstanding for the period. Diluted net income (loss) per share is calculated under the as-if-converted method unless the conversion of the preferred shares is anti-dilutive to basic net income per share. Diluted net income (loss) per share is calculated by dividing the net income (loss) allocable to ordinary shareholders by the weighted average number of ordinary shares outstanding, adjusted for the effects of potentially dilutive ordinary shares, which are comprised of share options, restricted shares and convertible preferred shares. The guidance does not require the presentation of basic and diluted net income (loss) per share for securities other than ordinary shares, therefore net income (loss) per share pertain only to the Company’s ordinary shares. | |||||||||||||||||||||
Foreign Currency Translation | ' | ||||||||||||||||||||
y. Foreign Currency Translation | |||||||||||||||||||||
The functional currency of the Company and its subsidiaries incorporated in the U.S. and Cayman Islands is the USD. The functional currency of the Company’s three subsidiaries incorporated in Hong Kong is USD as i) two of them, Montage Semiconductor Hong Kong Company Limited and Montage Technology Hong Kong Company Limited, are holding companies with limited cash flows and their cash, paid-in capital and long-term investment are denominated in USD and ii) Montage Technology Company Limited (“MT Company”) historically was responsible for a majority of sales and purchases with external third parties and other group companies. MT Company enters | |||||||||||||||||||||
into sale and purchase contracts in USD and settles related receivables and payables in USD. In addition, inter-company charges between MT Company and the Company or its subsidiaries are also denominated and settled in USD. The Company concluded that the primary economic environment in which MT Company operates is in USD. The functional currency of the Company’s subsidiaries incorporated in the PRC, which are mainly for research and development activities of the Company, is the Renminbi (“RMB”) as a majority of their purchases and research and development expenses are denominated and settled in RMB. The functional currency of the Company’s subsidiary incorporated in Taiwan is Taiwan dollars. After the Company’s subsidiary incorporated in Macao was established in June 2013, substantially all of the business transaction under MT Company described above is being conducted by the subsidiary in Macao. The Company determined that the functional currency for the subsidiary in Macao is USD as the primary economic environment in which it operates is in USD. | |||||||||||||||||||||
Monetary assets and liabilities in currency denomination other the functional currency are translated into the functional currency at the rate of exchange in effect at the balance sheet date. Transactions in currencies other than the functional currency during the reporting period are converted into the functional currency at the applicable exchange rate on the day the transaction occurred. Gains and losses resulting from the translation are included in other income (expense), net. For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, foreign exchange loss (gain) was $269, $495, $126, $(61) (unaudited) and $320 (unaudited), respectively. | |||||||||||||||||||||
The Company has chosen the USD as the reporting currency. For the subsidiaries whose functional currency is not the USD, their assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates, and revenues, and expenses, gains, and losses are translated using the average exchange rate for the reporting period. Foreign currency translation adjustments are accounted for as accumulated comprehensive income, which is a component of shareholders’ deficit. | |||||||||||||||||||||
Appropriations to Statutory Reserves | ' | ||||||||||||||||||||
z. Appropriations to Statutory Reserves | |||||||||||||||||||||
In accordance with the relevant PRC regulations, the Company’s subsidiaries in the PRC are required to allocate at least 10% of their after-tax profit, after the recovery of accumulated deficit reported under PRC accounting standards, to the general reserve until the general reserve has reached 50% of the registered capital of each subsidiary in PRC. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances, or cash dividends. For the years ended December 31, 2010, 2011 and 2012 and for the nine months ended September 30, 2012 and 2013, the appropriations to statutory reserves for profit making subsidiaries in PRC were $0, $610, $130, $0 (unaudited) and $0 (unaudited), respectively. | |||||||||||||||||||||
Employee Benefit Plan | ' | ||||||||||||||||||||
aa. Employee Benefit Plan | |||||||||||||||||||||
The Company’s subsidiaries incorporated in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company’s subsidiaries in PRC to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations. The Company’s subsidiaries in the PRC have no further commitments beyond their monthly contributions. For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the Company’s subsidiaries in the PRC contributed a total of $1,111, $1,558, $2,339, $1,692 (unaudited) and $2,327 (unaudited), respectively, to these funds. | |||||||||||||||||||||
The Company’s subsidiaries in Hong Kong and Taiwan contribute to pension funds administrated by independent third parties and have no further payment obligations once the contributions have been paid. The contributions to the schemes are based on a fixed percentage of the employees’ relevant income per month and are expensed as incurred. The Company has no legal or constructive obligation to pay further contributions if the funds do not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. For the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013, the Company’s subsidiaries in Hong Kong and Taiwan contributed a total of $0, $0, $10, $0 (unaudited) and $88 (unaudited), respectively, to these funds. | |||||||||||||||||||||
The Company’s subsidiary in the United States does not participate in any pension or similar employee saving plans. | |||||||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||||||
bb. Recent Accounting Pronouncements | |||||||||||||||||||||
In December 2011, the FASB issued ASU 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This update requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the statements of financial position as well as instruments and transactions executed under a master netting or similar arrangement and was issued to enable users of financial statements to understand the effects or potential effects of those arrangements on their financial position. This update is required to be applied retrospectively and is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of this update did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
In July 2012, the FASB issued ASU 2012-02, “Intangibles—Goodwill and Other: Testing Indefinite Lived Intangible Assets for Impairment.” The update applies to all entities, both public and nonpublic, that have indefinite-lived intangible assets, other than goodwill, reported in their financial statements. Per the update, an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if financial statements for the most recent annual or interim period have not yet been issued. The adoption of this update did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This update does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, this update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This update is effective prospectively for reporting periods beginning after December 15, 2012 for public entities. The adoption of this update did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
In March 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”. This update provides that when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For an equity method investment that is a foreign entity, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. However, this treatment does not apply to an equity method investment that is not a foreign entity. In those instances, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. Additionally, the amendments in this update clarify that the sale of an investment in a foreign entity includes both (1) events that result in the loss of a controlling financial interest in a foreign entity (that is, irrespective of any retained investment) and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. This update is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company is currently evaluating the impact on its financial statements of adopting this update. | |||||||||||||||||||||
On April 22, 2013, the FASB issued Accounting Standards Update No. 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. This guidance addresses when and how an entity should apply the liquidation basis of accounting. The amendments in this Update are being issued to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments apply to all entities that issue financial statements that are presented in conformity with U.S. GAAP except investment companies that are regulated under the Investment Company Act of 1940 (the 1940 Act). The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The adoption of this update is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
On July 18, 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (Income Taxes—Topic 740). This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. The amendments in this Update do not require new recurring disclosures. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company is currently evaluating the impact on its financial statements of adopting this update. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Accounting Policies [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, 2011: | |||||||||||||||||||||
Items | As of | Fair value measurements at reporting date using | |||||||||||||||||||
December 31, | |||||||||||||||||||||
2011 | Quoted Prices | Significant | Significant | ||||||||||||||||||
in Active Markets | Other | Unobservable | |||||||||||||||||||
for Identical Assets | Observable | Inputs | |||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
Cash | $ | 16,438 | $ | 16,438 | $ | — | $ | — | |||||||||||||
Time deposits with the maturity term below 3 months | 6,905 | 6,905 | — | — | |||||||||||||||||
$ | 23,343 | $ | 23,343 | $ | — | $ | — | ||||||||||||||
The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy as of December 31, 2012: | |||||||||||||||||||||
Items | As of | Fair value measurements at reporting date using | |||||||||||||||||||
December 31, | |||||||||||||||||||||
2012 | Quoted Prices | Significant | Significant | ||||||||||||||||||
in Active Markets | Other | Unobservable | |||||||||||||||||||
for Identical Assets | Observable | Inputs | |||||||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
Cash | $ | 12,175 | $ | 12,175 | $ | — | $ | — | |||||||||||||
Time deposits with the maturity term below 3 months | 9,405 | 9,405 | — | — | |||||||||||||||||
Short-term investments | 6,472 | — | 6,472 | — | |||||||||||||||||
$ | 28,052 | $ | 21,580 | $ | 6,472 | $ | — | ||||||||||||||
The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy as of September 30, 2013 (unaudited): | |||||||||||||||||||||
As of | Fair value measure at reporting date using | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2013 | Quoted Prices | Significant Other | Significant | ||||||||||||||||||
in Active Markets | Observable Inputs | Unobservable | |||||||||||||||||||
for Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Cash | $ | 27,414 | $ | 27,414 | $ | — | $ | — | |||||||||||||
Bank investment products readily convertible within the maturity term below 3 months | 9,759 | — | 9,759 | — | |||||||||||||||||
Time deposits with the maturity term below 3 months | 4,008 | 4,008 | — | — | |||||||||||||||||
Time deposits 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 | $ | — | |||||||||||||
Summary of Percentage of Revenue and Accounts Receivable Represented by Major 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: | |||||||||||||||||||||
Year Ended December 31, | For the Nine Months | ||||||||||||||||||||
Ended September 30, | |||||||||||||||||||||
Revenue | 2010 | 2011 | 2012 | 2012 | 2013 | ||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Company A | 21 | % | 33 | % | 9 | % | 7 | % | 7 | % | |||||||||||
Company B | 19 | % | 9 | % | 5 | % | 6 | % | 3 | % | |||||||||||
Company C | 33 | % | 36 | % | 18 | % | 21 | % | 8 | % | |||||||||||
Company D | 0 | % | 0 | % | 50 | % | 43 | % | 71 | % | |||||||||||
As of December 31, | As of September 30, | ||||||||||||||||||||
Accounts receivable | 2011 | 2012 | 2013 | ||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Company B | 18 | % | 1 | % | 2 | % | |||||||||||||||
Company D | 68 | % | 89 | % | 79 | % | |||||||||||||||
Useful Lives by Asset | ' | ||||||||||||||||||||
Useful lives by asset category are as follows: | |||||||||||||||||||||
Asset Category | Years | ||||||||||||||||||||
Office equipment | 3-7 years | ||||||||||||||||||||
Leasehold improvements | Shorter of lease term or estimated useful life | ||||||||||||||||||||
Equipment | 3-5 years | ||||||||||||||||||||
Furniture and fixtures | 3-7 years |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||||
Components of Inventories | ' | ||||||||||||
Inventories consist of the following: | |||||||||||||
As of December 31, | As of September 30, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
(in thousands) | (unaudited) | ||||||||||||
Work in progress | $ | 1,354 | $ | 3,665 | $ | 5,491 | |||||||
Finished goods | 5,627 | 7,451 | 4,339 | ||||||||||
$ | 6,981 | $ | 11,116 | $ | 9,830 |
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 December 31, | As of September 30, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
(unaudited) | |||||||||||||
Value-added tax recoverable | $ | 543 | $ | 486 | $ | 603 | |||||||
Prepaid license fees | 150 | 294 | 141 | ||||||||||
Prepayment for material purchase | 481 | 170 | 173 | ||||||||||
Rental deposits | 316 | 321 | 400 | ||||||||||
Value-added tax refundable on export sales | 56 | 306 | 489 | ||||||||||
Other prepaid expenses and other current assets | 252 | 423 | 785 | ||||||||||
$ | 1,798 | $ | 2,000 | $ | 2,591 | ||||||||
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 December 31, | As of September 30, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
(in thousands) | (unaudited) | ||||||||||||
Office and other equipment | $ | 2,103 | $ | 3,193 | $ | 3,862 | |||||||
Furniture and fixtures | 389 | 475 | 663 | ||||||||||
Leasehold improvements | 512 | 1,354 | 1,665 | ||||||||||
3,004 | 5,022 | 6,190 | |||||||||||
Less: accumulated depreciation and amortization | (1,989 | ) | (2,738 | ) | (3,731 | ) | |||||||
$ | 1,015 | $ | 2,284 | $ | 2,459 | ||||||||
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 December 31, | As of September 30, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
(in thousands) | (unaudited) | ||||||||||||
Assembled workforce(1) | $ | — | $ | 1,900 | $ | 1,900 | |||||||
Technology Licenses | 150 | 150 | 116 | ||||||||||
Software | — | — | 265 | ||||||||||
Montage Macao license(2) | — | — | 129 | ||||||||||
Less: accumulated amortization | (56 | ) | (554 | ) | (1,390 | ) | |||||||
$ | 94 | $ | 1,496 | $ | 1,020 | ||||||||
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 December 31, | As of September 30, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
(in thousands) | (unaudited) | ||||||||||||
Government funding for research and development projects(1) | $ | 3,273 | $ | 3,055 | $ | 3,893 | |||||||
Accrued employee compensation and other employee expenses | 2,196 | 4,505 | 3,504 | ||||||||||
Accrued research and development expenses | 1,317 | 28 | — | ||||||||||
Accrued royalty on licensed technology | 466 | — | — | ||||||||||
Advances from customers | 141 | 230 | 267 | ||||||||||
Accrued warranty | 111 | 149 | 187 | ||||||||||
Accrued professional service fee | 33 | 497 | 3,484 | ||||||||||
Proceeds received for early exercised options | 9 | — | 8 | ||||||||||
Other accrued liabilities | 545 | 644 | 598 | ||||||||||
$ | 8,091 | $ | 9,108 | $ | 11,941 | ||||||||
-1 | For the nine months ended September 30, 2012 and 2013, the Company recorded $1,025 (unaudited) and $396 (unaudited) 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 (unaudited), 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 December 31, | As of September 30, | ||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||
(in thousands) | (unaudited) | ||||||||||||||||||||
Deferred revenue | $ | 12,685 | $ | 15,878 | $ | 20,146 | |||||||||||||||
Deferred cost of revenue | (7,538 | ) | (14,678 | ) | (18,601 | ) | |||||||||||||||
$ | 5,147 | $ | 1,200 | $ | 1,545 | ||||||||||||||||
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 years ended 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013 were as follows: | |||||||||||||||||||||
For the Years Ended December 31, | Nine Months Ended | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(in thousands) | (unaudited) | (unaudited) | |||||||||||||||||||
Balance at the beginning of the period | $ | 1,979 | $ | 828 | $ | 5,147 | $ | 5,147 | $ | 1,200 | |||||||||||
Revenue deferred upon shipment to distributors | 23,739 | 53,085 | 40,456 | 27,734 | 33,847 | ||||||||||||||||
Cost of sales deferred upon shipments to distributors | (14,933 | ) | (23,426 | ) | (31,655 | ) | (18,509 | ) | (26,952 | ) | |||||||||||
Revenue recognized upon resale from distributors to end customers | (23,780 | ) | (43,747 | ) | (37,007 | ) | (26,295 | ) | (29,126 | ) | |||||||||||
Cost of sales recognized upon resale from distributors to end customers | 15,247 | 18,066 | 24,515 | 13,126 | 23,029 | ||||||||||||||||
Price adjustments to distributors | (1,424 | ) | 341 | (256 | ) | (195 | ) | (453 | ) | ||||||||||||
Balance at the end of period | $ | 828 | $ | 5,147 | $ | 1,200 | $ | 1,008 | $ | 1,545 | |||||||||||
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 (loss) for the years ended December 31, 2010, 2011 and 2012 and the nine months ended September 30, 2012 and 2013: | |||||||||||||||||||||
For the Years Ended | Nine Months Ended | ||||||||||||||||||||
December 31, | September 30, | ||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(in thousands) | (unaudited) | (unaudited) | |||||||||||||||||||
Revenue recognized upon resale from distributors to end customers (through deferred revenue) | $ | 23,780 | $ | 43,747 | $ | 37,007 | $ | 26,295 | $ | 29,126 | |||||||||||
Revenue recognized upon resale from LQW to end customers (recorded directly in revenue)(1) | — | — | 29,007 | 17,998 | 38,115 | ||||||||||||||||
Revenue recognized for the Company’s sales directly to end customers | 5,298 | 6,591 | 12,231 | 10,245 | 8,207 | ||||||||||||||||
Total | $ | 29,078 | $ | 50,338 | $ | 78,245 | $ | 54,538 | $ | 75,448 | |||||||||||
-1 | LQW has been a distributor for the Company’s products since October 2011 and no revenue was recognized through sales by LQW for the year ended December 31, 2011. As discussed in note 1n, 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 consist of the following as of December 31, 2012: | |||||||||||||||||||||||||||
Convertible | Issuance date | Par | Subscription | Shares | Carrying | Liquidation | |||||||||||||||||||||
Preferred Shares | Value | Price | amount | Value | |||||||||||||||||||||||
Per | Per Share | ||||||||||||||||||||||||||
Share | Authorized | Outstanding | |||||||||||||||||||||||||
Series A | April 23, 2004 and | $ | 0.0125 | $ | 1.25 | 4,800,000 | 4,800,000 | $ | 6,000 | $ | 6,000 | ||||||||||||||||
31-Aug-04 | |||||||||||||||||||||||||||
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 | 0.0125 | 2.799 | (2) | 3,571,514 | 2,839,409 | 10,309 | 7,947 | |||||||||||||||||||
22-Oct-09 | |||||||||||||||||||||||||||
30-Jun-10 | |||||||||||||||||||||||||||
17,604,639 | 15,944,528 | $ | 54,377 | $ | 43,230 | ||||||||||||||||||||||
Convertible preferred shares consist of the following as of September 30, 2013 (unaudited): | |||||||||||||||||||||||||||
Convertible | Issuance date | Par | Subscription | Shares | Carrying | Liquidation | |||||||||||||||||||||
Preferred Shares | Value | Price Per | amount | Value | |||||||||||||||||||||||
Per | Share | ||||||||||||||||||||||||||
Share | Authorized | Outstanding | |||||||||||||||||||||||||
Series A | April 23, 2004 and | $ | 0.0125 | $ | 1.25 | 4,800,000 | 4,800,000 | $ | 6,000 | $ | 6,000 | ||||||||||||||||
August 31, 2004 | |||||||||||||||||||||||||||
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 | 0.0125 | 2.799 | (2) | 3,571,514 | 2,839,409 | 10,332 | 7,947 | |||||||||||||||||||
22-Oct-09 | |||||||||||||||||||||||||||
30-Jun-10 | |||||||||||||||||||||||||||
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 Series B, B-1 and B-2 Convertible Preferred Shares | ' | ||||||||||||||||||||||||||
For the years ended December 31, 2010, 2011 and 2012, the accretion to the carrying value of Series B, B-1 and B-2 was summarized as follows: | |||||||||||||||||||||||||||
First Possible Redemption | Year Ended December 31, | ||||||||||||||||||||||||||
Date | 2010 | 2011 | 2012 | ||||||||||||||||||||||||
Series B | June 19, 2011 | $ | 905 | $ | 444 | $ | — | ||||||||||||||||||||
Series B issued upon warrant exercise | 19-Jun-11 | 55 | 26 | — | |||||||||||||||||||||||
Series B-1 | 19-Jun-11 | 1,274 | 623 | — | |||||||||||||||||||||||
Series B-2 | 1-Jun-13 | 279 | 54 | 55 | |||||||||||||||||||||||
Total | $2,513 | $ | 1,147 | $ | 55 | ||||||||||||||||||||||
For the nine months ended September 30, 2012 and 2013, the accretion to the carrying value of Series B-2 was summarized as follows: | |||||||||||||||||||||||||||
First Possible Redemption | For the Nine Months Ended | ||||||||||||||||||||||||||
Date | September 30, | ||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||||
Series B-2 | January 1, 2014 | $ | 42 | $ | 23 | ||||||||||||||||||||||
Summary of Fair Value of Warrants under Black-Scholes Pricing Model | ' | ||||||||||||||||||||||||||
In determining the fair value of the warrants, the Company applied the Black-Scholes pricing model with the following assumptions used: | |||||||||||||||||||||||||||
January 1, 2010 | |||||||||||||||||||||||||||
Expected volatility (%)(1) | 43.55 | % | |||||||||||||||||||||||||
Expected dividend yield (%)(2) | 0 | % | |||||||||||||||||||||||||
Expected term (years)(3) | 0.5 | ||||||||||||||||||||||||||
Risk-free interest rate (per annum) (%)(4) | 1.162 | % | |||||||||||||||||||||||||
-1 | The expected volatility was estimated based on the historical volatility of comparable companies in the period equal to average time to expiration. | ||||||||||||||||||||||||||
-2 | The expected dividends are considered to be zero because the Company has no history or expectation of paying dividends on its ordinary shares. | ||||||||||||||||||||||||||
-3 | The expected term was determined based on the period between the valuation date and the expiration date as the warrants are transferable. | ||||||||||||||||||||||||||
-4 | The risk-free interest rates are based on the yield of government securities with similar time duration as the expected term. | ||||||||||||||||||||||||||
Schedule of Changes in Fair Value of Warrant Liabilities | ' | ||||||||||||||||||||||||||
For the year ended December 31, 2010, the changes in the fair value of warrant liabilities were summarized as follows: | |||||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||
Balance as of January 1, 2010 | $ | 1,952 | |||||||||||||||||||||||||
Changes in the fair value prior to warrant exercise on June 30, 2010 | 37 | ||||||||||||||||||||||||||
Transferred warrant liabilities to carrying value of Series B-2 preferred shares | (1,989 | ) | |||||||||||||||||||||||||
Balance as of December 31, 2010 | $ | — | |||||||||||||||||||||||||
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: | |||||||||||||||||||||
Year Ended December 31, | Nine Months Ended September 30, | ||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Risk-free interest rate | 2.37%-4.53% | 1.42%-4.52% | 1.10-3.13% | 1.10-3.13% | 1.11-3.53% | ||||||||||||||||
Expected term (in years) | 6 to 10 | 6 to 10 | 6 to 10 | 6 to 10 | 6 to 10 | ||||||||||||||||
Dividend yield | — | — | — | — | — | ||||||||||||||||
Volatility | 50.21%-63.99% | 49.29%-57.46% | 39.97%-52.66% | 43.81%-52.66% | 39.69%-49.75% | ||||||||||||||||
Summary of Information Regarding Options Outstanding | ' | ||||||||||||||||||||
The following table summarizes information regarding options outstanding starting from 2010 onwards: | |||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
Outstanding at December 31, 2010 | 2,037,032 | $ | 0.5 | ||||||||||||||||||
Granted | 427,200 | 2.15 | |||||||||||||||||||
Exercised | 69,333 | 0.88 | |||||||||||||||||||
Forfeited | 50,129 | 1.3 | |||||||||||||||||||
Canceled | 25,562 | 0.53 | |||||||||||||||||||
Outstanding at December 31, 2011 | 2,319,208 | 0.78 | |||||||||||||||||||
Granted | 539,920 | 8.95 | |||||||||||||||||||
Exercised | 106,220 | 0.63 | |||||||||||||||||||
Forfeited | 3,763 | 2.2 | |||||||||||||||||||
Canceled | 14,457 | 0.48 | |||||||||||||||||||
Outstanding at December 31, 2012 | 2,734,688 | $ | 2.4 | ||||||||||||||||||
Granted (unaudited) | 1,330,760 | 17.68 | |||||||||||||||||||
Exercised (unaudited) | 263,667 | 0.3 | |||||||||||||||||||
Forfeited (unaudited) | 26,019 | 10.64 | |||||||||||||||||||
Canceled (unaudited) | 4,669 | 0.99 | |||||||||||||||||||
Outstanding at September 30, 2013 (unaudited) | 3,771,093 | $ | 7.89 | 7 | $ | 28,412 | |||||||||||||||
Exercisable at September 30, 2013 (unaudited) | 3,146,996 | $ | 7.21 | 6.61 | $ | 25,571 | |||||||||||||||
Vested at September 30, 2013 (unaudited) | 1,883,245 | $ | 1.34 | 4.74 | $ | 24,225 | |||||||||||||||
Vested and expected to vest at September 30, 2013 (unaudited) | 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 December 31, 2012: | |||||||||||||||||||||
Share Options Outstanding | Share Options | ||||||||||||||||||||
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 | 1,008,800 | 3.48 | $ | 0.13 | 1,008,800 | $ | 0.13 | ||||||||||||||
$ 0.40-$1.03 | 802,980 | 6.07 | 0.98 | 752,897 | 0.98 | ||||||||||||||||
$ 2.20-$9.43 | 922,907 | 9.19 | 6.18 | 475,583 | 6.18 | ||||||||||||||||
2,734,687 | 6.16 | $ | 2.4 | 2,237,280 | $ | 1.7 | |||||||||||||||
The following table summarizes information about share options outstanding as of September 30, 2013 (unaudited): | |||||||||||||||||||||
Share Options Outstanding | Share Options | ||||||||||||||||||||
Exercisable | |||||||||||||||||||||
.Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||
Term | |||||||||||||||||||||
(in years) | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
$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 Plan for the nine months ended September 30, 2013: | |||||||||||||||||||||
Number | Weighted-Average | ||||||||||||||||||||
of Shares | Grant Date Fair | ||||||||||||||||||||
Value Per Share | |||||||||||||||||||||
Outstanding at December 31, 2012 | — | $ | — | ||||||||||||||||||
Granted | 330,620 | 17.98 | |||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Forfeited | 8,200 | 17.98 | |||||||||||||||||||
Outstanding at September 30, 2013 (unaudited) | 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): | |||||||||||||||||||||
Year Ended December 31, | Nine Months Ended September 30, | ||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of net revenue | $ | 31 | $ | 13 | $ | 19 | $ | 15 | $ | 30 | |||||||||||
Research and development | 358 | 356 | 497 | 347 | 715 | ||||||||||||||||
Sales, general and administrative | 389 | 262 | 473 | 320 | 1,213 | ||||||||||||||||
Restricted Share Awards [Member] | ' | ||||||||||||||||||||
Schedule of Recognized Share-Based Compensation Expense | ' | ||||||||||||||||||||
The Company recognized share-based compensation expense for RSAs as follows (in thousands): | |||||||||||||||||||||
Year Ended December 31, | Nine Months Ended September 30, | ||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of net revenue | $ | — | $ | — | $ | — | $ | — | $ | 32 | |||||||||||
Research and development | — | — | — | — | 409 | ||||||||||||||||
Sales, general and administrative | — | — | — | — | 63 |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Income (Loss) Before Income Taxes | ' | ||||||||||||
Income (loss) before income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
(in thousands) | |||||||||||||
China operations | $ | 319 | $ | 5,952 | $ | 2,241 | |||||||
Non-China operations | (8,808 | ) | 1,657 | 17,268 | |||||||||
Income (loss) before income taxes | $ | (8,489 | ) | $ | 7,609 | $ | 19,509 | ||||||
Summary of Income Tax Provision | ' | ||||||||||||
Income tax provision consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
China operations | $ | — | $ | 178 | $ | 263 | |||||||
Non-China operations | 76 | 3,119 | 888 | ||||||||||
$ | 76 | $ | 3,297 | $ | 1,151 | ||||||||
Deferred: | |||||||||||||
China operations | $ | (22 | ) | $ | (208 | ) | $ | (159 | ) | ||||
Non-China operations | — | (452 | ) | 236 | |||||||||
$ | (22 | ) | $ | (660 | ) | $ | 77 | ||||||
Provision for income taxes | $ | 54 | $ | 2,637 | $ | 1,228 | |||||||
Schedule of Reconciliation of Statutory Income Tax Rate and Company's Effective Tax Rate | ' | ||||||||||||
Income tax provision differed from the amounts computed by applying the statutory income tax rate of 25% for the PRC subsidiaries to pre-tax income (loss) as a result of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Income tax at statutory rate | $ | (2,122 | ) | $ | 1,902 | $ | 4,877 | ||||||
Foreign tax rate differential | 1,619 | (670 | ) | (4,144 | ) | ||||||||
Tax holiday benefit | (374 | ) | (1,746 | ) | (161 | ) | |||||||
Change in valuation allowance | (63 | ) | (447 | ) | (75 | ) | |||||||
Provision for uncertain tax position | 814 | 3,646 | 760 | ||||||||||
Others | 180 | (48 | ) | (29 | ) | ||||||||
Provision for income taxes | $ | 54 | $ | 2,637 | $ | 1,228 | |||||||
The Company recorded an income tax provision of $1,709 (unaudited) and $980 (unaudited) for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||
The following table sets out the reconciliation of statutory income tax rate and the Company’s effective tax rate: | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Income tax at statutory rate | 25 | % | 25 | % | 25 | % | |||||||
Foreign tax rate differential | (19.07 | %) | (8.80 | %) | (21.24 | %) | |||||||
Tax holiday benefit | 4.41 | % | (22.95 | %) | (0.83 | %) | |||||||
Change in valuation allowance | 0.74 | % | (5.87 | %) | (0.38 | %) | |||||||
Provision for uncertain tax position | (9.59 | %) | 47.91 | % | 3.89 | % | |||||||
Others | (2.12 | %) | (0.63 | %) | (0.15 | %) | |||||||
Effective tax rate | (0.63 | %) | 34.66 | % | 6.29 | % | |||||||
Foreign tax rate differenti | |||||||||||||
Summary of Aggregated Amount and Per Ordinary Share Effect of Tax Holiday | ' | ||||||||||||
The aggregated amount and per ordinary share effect of the tax holiday are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
The aggregated dollar effect (in thousands) . . . . . . . . . . . . . | $ | 374 | $ | 1,746 | $ | 161 | |||||||
Per ordinary share effect—basic . . . . . . . . . . . . . . . . . . . . | 0.09 | 0.41 | 0.04 | ||||||||||
Per ordinary share effect—diluted . . . . . . . . . . . . . . . . . . . | 0.09 | 0.29 | 0.03 | ||||||||||
Summary of Significant Portions of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Temporary differences that gave rise to significant portions of the Company’s deferred tax assets and liabilities were as follows: | |||||||||||||
As of December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue, accruals and reserves | $ | 396 | $ | 681 | $ | 586 | |||||||
Depreciation and amortization | 51 | 69 | 83 | ||||||||||
Net operating loss carryforwards | 178 | 87 | 50 | ||||||||||
Total deferred tax assets | $ | 625 | $ | 837 | $ | 719 | |||||||
Less: valuation allowance | (573 | ) | (126 | ) | (51 | ) | |||||||
Deferred tax assets, net | $ | 52 | $ | 711 | $ | 668 | |||||||
Deferred tax liabilities: | |||||||||||||
Prepaid expense | $ | — | $ | — | $ | (34 | ) | ||||||
Deferred tax liabilities | $ | — | $ | — | $ | (34 | ) | ||||||
Summary of Company's Unrecognized Tax Benefit | ' | ||||||||||||
The following table summarizes the Company’s unrecognized tax benefit: | |||||||||||||
As of December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Beginning balance | $ | 1,411 | $ | 2,215 | $ | 5,851 | |||||||
Increases related to prior year tax positions | — | — | — | ||||||||||
Increases related to current year tax positions | 804 | 3,636 | 757 | ||||||||||
Ending balance | $ | 2,215 | $ | 5,851 | $ | 6,608 | |||||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||
Computation of Basic and Diluted Net Income (Loss) Per Ordinary Share | ' | ||||||||||||||||||||
The following shows the computation of basic and diluted net income (loss) per ordinary share: | |||||||||||||||||||||
Year Ended December 31, | Nine Months ended | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Numerator | |||||||||||||||||||||
Net income (loss) | $ | (8,543 | ) | $ | 4,972 | $ | 18,281 | $ | 14,594 | $ | 16,813 | ||||||||||
Less: Accretion to preferred shares | (2,513 | ) | (1,147 | ) | (55 | ) | (42 | ) | (23 | ) | |||||||||||
Less: Allocation of net income to participating preferred shares and restricted shares | — | (3,748 | ) | (15,112 | ) | (12,038 | ) | (13,651 | ) | ||||||||||||
Numerator for basic calculation | (11,056 | ) | 77 | 3,114 | 2,514 | 3,139 | |||||||||||||||
Undistributed earnings re-allocated to ordinary shareholders | — | 22 | 1,059 | 847 | 926 | ||||||||||||||||
Numerator for diluted calculation | $ | (11,056 | ) | $ | 99 | $ | 4,173 | $ | 3,361 | $ | 4,065 | ||||||||||
Denominator | |||||||||||||||||||||
Denominator for basic calculation, weighted-average number of shares of ordinary share outstanding | 4,157,498 | 4,260,192 | 4,319,243 | 4,303,135 | 4,618,302 | ||||||||||||||||
Dilutive effect of share option | — | 1,664,198 | 2,047,439 | 1,991,931 | 1,926,644 | ||||||||||||||||
Dilutive effect of restricted shares and awards | — | — | — | — | 12,422 | ||||||||||||||||
Denominator for diluted calculation | 4,157,498 | 5,924,390 | 6,366,682 | 6,295,066 | 6,557,368 | ||||||||||||||||
Net income (loss) per share | |||||||||||||||||||||
Basic | $ | (2.66 | ) | $ | 0.02 | $ | 0.72 | $ | 0.58 | $ | 0.68 | ||||||||||
Diluted | $ | (2.66 | ) | $ | 0.02 | $ | 0.66 | $ | 0.53 | $ | 0.62 | ||||||||||
Schedule of Anti-dilutive Shares not Included in Calculation of Diluted Net Loss Per Share | ' | ||||||||||||||||||||
The following table sets forth potential shares of ordinary shares that are not included in the calculation of diluted net income (loss) per share because including them would be anti-dilutive as of the end of each period presented: | |||||||||||||||||||||
Year Ended December 31, | Nine Months Ended | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Convertible preferred shares | 15,411,033 | 16,163,598 | 16,163,598 | 16,163,598 | 16,163,598 | ||||||||||||||||
Equity awards outstanding | 1,967,598 | — | — | — | — | ||||||||||||||||
Warrants to purchase convertible preferred share | 614,521 | — | — | — | — | ||||||||||||||||
17,993,152 | 16,163,598 | 16,163,598 | 16,163,598 | 16,163,598 | |||||||||||||||||
Schedule of Equity Awards not Included In Calculation of Diluted Net Income (Loss) Per Share | ' | ||||||||||||||||||||
The following table sets forth potential shares of ordinary shares that are not included in the calculation of diluted net income (loss) 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: | |||||||||||||||||||||
Year Ended December 31, | Nine Months Ended | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Equity awards outstanding | 86,650 | 93,624 | 154,906 | 417,120 | 1,726,480 |
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: | |||||||||||||||||||||
Year Ended December 31, | For the Nine Months | ||||||||||||||||||||
Ended September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(in thousands) | (unaudited) | (unaudited) | |||||||||||||||||||
Hong Kong | $ | 27,382 | $ | 48,911 | $ | 72,570 | $ | 50,002 | $ | 68,404 | |||||||||||
Asia Pacific | 581 | 44 | 1,325 | 1,236 | 2,782 | ||||||||||||||||
United States | 977 | 1,115 | 3,160 | 2,644 | 2,655 | ||||||||||||||||
Europe | 138 | 268 | 1,190 | 656 | 1,607 | ||||||||||||||||
$ | 29,078 | $ | 50,338 | $ | 78,245 | $ | 54,538 | $ | 75,448 | ||||||||||||
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: | |||||||||||||||||||||
Year Ended December 31, | For the Nine Months | ||||||||||||||||||||
Ended September 30, | |||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||||
(in thousands) | (unaudited) | (unaudited) | |||||||||||||||||||
Home entertainment | $ | 27,991 | $ | 48,995 | $ | 73,611 | $ | 50,614 | $ | 68,371 | |||||||||||
Cloud computing market | 1,087 | 1,343 | 4,634 | 3,924 | 7,077 | ||||||||||||||||
$ | 29,078 | $ | 50,338 | $ | 78,245 | $ | 54,538 | $ | 75,448 | ||||||||||||
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 and purchase commitments having initial terms in excess of one year as of December 31, 2012 are as follows: | |||||||||||||||||
Payment Due by Period | |||||||||||||||||
Total | Less than | 3-Jan | 5-Mar | ||||||||||||||
1 Year | Years | Years | |||||||||||||||
(in thousands) | |||||||||||||||||
Operating lease obligations | $ | 1,775 | $ | 992 | $ | 783 | $ | — | |||||||||
Purchase obligations | 1,086 | 1,086 | — | — | |||||||||||||
Total contractual obligations | $ | 2,861 | $ | 2,078 | $ | 783 | $ | — | |||||||||
Future minimum lease payment under noncancelable operating leases and purchase commitment having initial terms in excess of one year as of September 30, 2013 (unaudited) 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 (Unaudited) (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 year ended December 31, 2012 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 each period presented was as follows: | |||||||||
For the Years Ended | For the Nine Months | ||||||||
31-Dec-12 | Ended September 30, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Numerator: | |||||||||
Actual net income attributable to ordinary shareholders | $ | 3,114 | $ | 3,139 | |||||
Pro-forma effect of preferred shares | 15,167 | 13,674 | |||||||
Pro-forma net income attributable to ordinary shareholders—Basic and diluted | 18,281 | 16,813 | |||||||
Denominator: | |||||||||
Actual weighted average number of ordinary shares outstanding | |||||||||
Basic | 4,319,243 | 4,618,302 | |||||||
Diluted | 6,366,682 | 6,557,368 | |||||||
Pro-forma effect of preferred shares | 16,163,598 | 16,163,598 | |||||||
Denominator for pro-forma basic and diluted calculation | |||||||||
Basic | 20,482,841 | 20,781,900 | |||||||
Diluted | 22,530,280 | 22,720,966 | |||||||
Pro-forma basic and diluted net income per share attributable to ordinary shareholders | |||||||||
Basic | $ | 0.89 | $ | 0.81 | |||||
Diluted | $ | 0.81 | $ | 0.74 | |||||
Additional_Information_Condens1
Additional Information - Condensed Financial Statements of the Company (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||
Condensed Balance Sheets | ' | ||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||
(Dollars in thousands except share and per share data) | |||||||||||||
December 31 | |||||||||||||
2011 | 2012 | ||||||||||||
Assets | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 7,211 | $ | 5,638 | |||||||||
Inventories | 3,327 | 5,871 | |||||||||||
Amount due from subsidiaries | 22,480 | 30,993 | |||||||||||
Prepaid expenses and other current assets | 166 | 333 | |||||||||||
Total current assets | 33,184 | 42,835 | |||||||||||
Investments in subsidiaries | 6,149 | 6,799 | |||||||||||
Property and equipment, net | 19 | 10 | |||||||||||
Acquired intangible asset, net | 94 | 19 | |||||||||||
Deferred offering costs | — | 283 | |||||||||||
Total assets | $ | 39,446 | $ | 49,946 | |||||||||
Liabilities, Convertible Preferred Shares and Shareholders’ Deficit | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 3,623 | $ | 1,546 | |||||||||
Amount due to subsidiaries | 17,029 | 14,162 | |||||||||||
Accrued liabilities | 23 | 241 | |||||||||||
Deferred margin, net | 4,484 | 356 | |||||||||||
Income tax payable | 41 | 47 | |||||||||||
Total current liabilities | 25,200 | 16,352 | |||||||||||
Total liabilities | 25,200 | 16,352 | |||||||||||
Commitments and contingencies (Note 13) | |||||||||||||
Convertible Preferred Share: | |||||||||||||
Series A convertible preferred shares, $0.0125 par value; 4,800,000 shares authorized; 4,800,000 issued and outstanding as of December 31, 2011 and 2012 (Liquidation value: 6,000 and 6,000 as of December 31, 2011 and 2012) | 6,000 | 6,000 | |||||||||||
Series B convertible preferred shares, $0.0125 par value; 4,681,416 shares authorized; 4,255,843 issued and outstanding as of December 31, 2011 and 2012 (Liquidation value: 13,092, and 13,092 as of December 31, 2011 and 2012) | 17,020 | 17,020 | |||||||||||
Series B-1 convertible preferred shares, $0.0125 par value; 4,551,709 shares authorized; 4,049,276 issued and outstanding as of December 31, 2011 and 2012 (Liquidation value: 16,191 and 16,191 as of December 31, 2011 and 2012) | 21,048 | 21,048 | |||||||||||
Series B-2 convertible preferred shares, $0.0125 par value; 3,571,514 shares authorized; 2,839,409 issued and outstanding as of December 31, 2011 and 2012 respectively (Liquidation value: 7,947 and 7,947 as of December 31, 2011 and 2012) | 10,254 | 10,309 | |||||||||||
Shareholders’ deficit: | |||||||||||||
Ordinary Shares, $0.0125 par value; 26,804,639 shares authorized; 4,293,639, and 4,403,859 and issued and outstanding at December 31, 2011 and 2012, respectively | 54 | 55 | |||||||||||
Additional paid-in capital | — | 1,010 | |||||||||||
Accumulated comprehensive income | 1,810 | 1,811 | |||||||||||
Statutory reserve | 610 | 740 | |||||||||||
Accumulated deficit | (42,550 | ) | (24,399 | ) | |||||||||
Total shareholders’ deficit | (40,076 | ) | (20,783 | ) | |||||||||
Total liabilities, convertible preferred share and shareholders’ deficit | $ | 39,446 | $ | 49,946 | |||||||||
Condensed Statements of Operations | ' | ||||||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
(Dollars in thousands except share and per share data) | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Revenue | $ | 5,195 | $ | 5,746 | $ | 40,702 | |||||||
Cost of revenue | (2,591 | ) | (1,619 | ) | (9,876 | ) | |||||||
Gross profit | 2,604 | 4,127 | 30,826 | ||||||||||
Operating expense: | |||||||||||||
Research and development | (8,903 | ) | (356 | ) | (13,209 | ) | |||||||
Sales, general and administrative | (315 | ) | (245 | ) | (980 | ) | |||||||
Total operating expense | (9,218 | ) | (601 | ) | (14,189 | ) | |||||||
Income (loss) from operations | (6,614 | ) | 3,526 | 16,637 | |||||||||
Interest Income (Expense), net | 10 | 31 | 60 | ||||||||||
Fair value change in warrant liability | (37 | ) | — | — | |||||||||
Equity gain (loss) from subsidiaries | (1,877 | ) | 1,430 | 1,590 | |||||||||
Income (loss) before income taxes | (8,518 | ) | 4,987 | 18,287 | |||||||||
Provision for Income tax | (25 | ) | (15 | ) | (6 | ) | |||||||
Net income (loss) | $ | (8,543 | ) | $ | 4,972 | $ | 18,281 | ||||||
Condensed Statements of Cash Flows | ' | ||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
(Dollars in thousands except share and per share data) | |||||||||||||
Year Ended December 31, | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Cash flows from operating activities | |||||||||||||
Net income (loss) | $ | (8,543 | ) | $ | 4,972 | $ | 18,281 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||
Depreciation and amortization | 515 | 185 | 84 | ||||||||||
Share-based compensation | 623 | 577 | 928 | ||||||||||
Equity in profit of subsidiaries | 1,876 | (1,431 | ) | (1,589 | ) | ||||||||
Fair value changes in warrant liability | 37 | — | — | ||||||||||
Changes in assets and liabilities: | |||||||||||||
Inventories | 4,336 | (3,327 | ) | (2,544 | ) | ||||||||
Prepaid expenses and other assets | 472 | 54 | (281 | ) | |||||||||
Amount due from subsidiaries | (415 | ) | (14,742 | ) | (8,513 | ) | |||||||
Accounts payable | (2,805 | ) | 3,623 | (2,077 | ) | ||||||||
Amount due to subsidiaries | 3,819 | 5,945 | (2,867 | ) | |||||||||
Tax payable | 25 | 16 | 6 | ||||||||||
Deferred margin, net | — | 4,484 | (4,128 | ) | |||||||||
Other payables and accruals | (222 | ) | (52 | ) | 228 | ||||||||
Net cash provided by (used in) operating activities | (282 | ) | 304 | (2,472 | ) | ||||||||
Cash flows from investing activities | |||||||||||||
Purchases of property and equipment | (16 | ) | (9 | ) | — | ||||||||
Proceeds from disposal of a subsidiary | — | — | 1,000 | ||||||||||
Purchase of intangible assets | (90 | ) | (159 | ) | — | ||||||||
Prepayment for acquisition | — | — | (26 | ) | |||||||||
Net cash provided by (used in) investing activities | (106 | ) | (168 | ) | 974 | ||||||||
Cash flows from financing activities | |||||||||||||
Proceeds from exercise of options | 5 | 43 | 68 | ||||||||||
Proceeds from early exercise of options | — | 18 | — | ||||||||||
Proceeds from issuance of Series B-2 convertible preferred shares | 42 | — | — | ||||||||||
Proceeds from exercise of warrant | 1,545 | — | — | ||||||||||
Cash paid for initial public offering cost | — | — | (143 | ) | |||||||||
Net cash provided by (used in) financing activities | 1,592 | 61 | (75 | ) | |||||||||
Effect of exchange rate changes on cash | — | — | — | ||||||||||
Net increase (decrease) in cash and cash equivalents | 1,204 | 197 | (1,573 | ) | |||||||||
Cash and cash equivalents at beginning of period | 5,810 | 7,014 | 7,211 | ||||||||||
Cash and cash equivalents at end of period | $ | 7,014 | $ | 7,211 | $ | 5,638 | |||||||
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||
Sep. 06, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||||
Employees | Employees | Employees | Share Options [Member] | Restricted Share Awards [Member] | Minimum [Member] | Maximum [Member] | Subsequent Events [Member] | PRC Subsidiaries [Member] | PRC Subsidiaries [Member] | PRC Subsidiaries [Member] | PRC Subsidiaries [Member] | PRC Subsidiaries [Member] | Hong Kong and Taiwan Subsidiaries [Member] | Hong Kong and Taiwan Subsidiaries [Member] | Hong Kong and Taiwan Subsidiaries [Member] | Hong Kong and Taiwan Subsidiaries [Member] | Hong Kong and Taiwan Subsidiaries [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | |||||||
Organization And Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of employees | ' | 459 | ' | 418 | 306 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reverse share split | '2.5-for-1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reverse share split, ratio | 0.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $46,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Underwriting discounts and commissions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Other offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ordinary shares issued upon conversion of Convertible Preferred Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,163,598 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Operating cash inflow, investment income | ' | ' | ' | 141,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Minimum variable interest rate percentage of underlying assets | ' | 3.20% | ' | 4.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Maximum variable interest rate percentage of underlying assets | ' | 4.60% | ' | 4.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Change in fair value of short-term investments | ' | 344,000 | 63,000 | 141,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Allowance for doubtful accounts | ' | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Estimated useful lives of property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Estimated useful lives of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Impairments for long-lived assets | ' | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Impairments for intangible assets | ' | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Deferred revenue price downward adjustment | ' | 453,000 | 195,000 | 256,000 | ' | 1,424,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of deferred revenue price downward adjustment | ' | 0.60% | 0.40% | 0.30% | ' | 4.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Deferred revenue price upward adjustment | ' | ' | ' | ' | 341,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of deferred revenue price upward adjustment | ' | ' | ' | ' | 0.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product warranty period | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product warranty cost | ' | 128,000 | 37,000 | 255,000 | 75,000 | 211,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Government funding deduction to expense | ' | 396,000 | 1,025,000 | 1,025,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Government funding for research and development | ' | 3,893,000 | [1] | ' | 3,055,000 | [1] | 3,273,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,893,000 | ' | 3,055,000 | 3,273,000 | ' |
Number of ordinary shares authorized under equity award issuance plan | ' | 6,566,544 | ' | 6,566,544 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Expiry period from date of grant | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Vesting period | ' | ' | ' | ' | ' | ' | '4 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Vesting percentage | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Foreign exchange loss (gain) | ' | 320,000 | -61,000 | 126,000 | 495,000 | 269,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
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 registered capital | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Appropriations to statutory reserves for PRC | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 130,000 | 610,000 | 0 | |||
Contributed funds under benefit plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,327,000 | $1,692,000 | $2,339,000 | $1,558,000 | $1,111,000 | $88,000 | $0 | $10,000 | $0 | $0 | ' | ' | ' | ' | ' | |||
[1] | For the nine months ended September 30, 2012 and 2013, the Company recorded $1,025 (unaudited) and $396 (unaudited) 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 (unaudited), 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. |
Summary_of_Financial_Instrumen
Summary of Financial Instruments, Measured at Fair Value by Level within Fair Value Hierarchy (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | $47,624 | $28,052 | $23,343 |
Cash | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 27,414 | 12,175 | 16,438 |
Time Deposits Within the Maturity Term Below 3 Months | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 4,008 | 9,405 | 6,905 |
Short-Term Investments | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 6,393 | 6,472 | ' |
Bank Investment Products Readily Convertible Within the Maturity Term Below 3 Months | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 9,759 | ' | ' |
Time Deposits With the Maturity Term Greater Than 3 Months but Less Than 1 Year | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 50 | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 31,472 | 21,580 | 23,343 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 27,414 | 12,175 | 16,438 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Time Deposits Within the Maturity Term Below 3 Months | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 4,008 | 9,405 | 6,905 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-Term Investments | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 0 | 0 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Bank Investment Products Readily Convertible Within the Maturity Term Below 3 Months | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 0 | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Time Deposits With the Maturity Term Greater Than 3 Months but Less Than 1 Year | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 50 | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 16,152 | 6,472 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Cash | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Time Deposits Within the Maturity Term Below 3 Months | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Short-Term Investments | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 6,393 | 6,472 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Bank Investment Products Readily Convertible Within the Maturity Term Below 3 Months | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 9,759 | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Time Deposits With the Maturity Term Greater Than 3 Months but Less Than 1 Year | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 0 | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Cash | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Time Deposits Within the Maturity Term Below 3 Months | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Short-Term Investments | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) [Member] | Bank Investment Products Readily Convertible Within the Maturity Term Below 3 Months | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | 0 | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Time Deposits With the Maturity Term Greater Than 3 Months but Less Than 1 Year | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' |
Financial instruments, measured at fair value | $0 | ' | ' |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies - Summary of Percentage of Revenue and Accounts Receivable Represented by Major Distributors and Customers (Detail) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Revenue [Member] | Company A [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue and accounts receivable | 7.00% | 7.00% | 9.00% | 33.00% | 21.00% |
Revenue [Member] | Company B [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue and accounts receivable | 3.00% | 6.00% | 5.00% | 9.00% | 19.00% |
Revenue [Member] | Company C [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue and accounts receivable | 8.00% | 21.00% | 18.00% | 36.00% | 33.00% |
Revenue [Member] | Company D [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue and accounts receivable | 71.00% | 43.00% | 50.00% | 0.00% | 0.00% |
Accounts Receivable [Member] | Company B [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue and accounts receivable | 2.00% | ' | 1.00% | 18.00% | ' |
Accounts Receivable [Member] | Company D [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue and accounts receivable | 79.00% | ' | 89.00% | 68.00% | ' |
Organization_and_Summary_of_Si5
Organization and Summary of Significant Accounting Policies - Estimated Useful Lives by Asset Category (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Leasehold improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment useful life | 'Shorter of lease term or estimated useful life |
Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment useful life | '3 years |
Minimum [Member] | Office equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment useful life | '3 years |
Minimum [Member] | Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment useful life | '3 years |
Minimum [Member] | Furniture and fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment useful life | '3 years |
Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment useful life | '5 years |
Maximum [Member] | Office equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment useful life | '7 years |
Maximum [Member] | Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment useful life | '5 years |
Maximum [Member] | Furniture and fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment useful life | '7 years |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | ' | ' | ' |
Work in progress | $5,491 | $3,665 | $1,354 |
Finished goods | 4,339 | 7,451 | 5,627 |
Inventories | $9,830 | $11,116 | $6,981 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Inventory [Line Items] | ' | ' | ' | ' | ' |
Finished goods | $4,339 | ' | $7,451 | $5,627 | ' |
Inventory write-downs | 414 | 204 | 522 | 545 | 1,561 |
Inventory reserve balance | 1,321 | ' | 2,406 | 2,173 | ' |
Restatement Adjustment [Member] | ' | ' | ' | ' | ' |
Inventory [Line Items] | ' | ' | ' | ' | ' |
Finished goods | ' | ' | $7,373 | $5,464 | ' |
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 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' | ' |
Value-added tax recoverable | $603 | $486 | $543 |
Prepaid license fees | 141 | 294 | 150 |
Prepayment for material purchase | 173 | 170 | 481 |
Rental deposits | 400 | 321 | 316 |
Value-added tax refundable on export sales | 489 | 306 | 56 |
Other prepaid expenses and other current assets | 785 | 423 | 252 |
Prepaid expenses and other current assets, total | $2,591 | $2,000 | $1,798 |
Property_and_Equipment_Net_Sum
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Property Plant And Equipment [Abstract] | ' | ' | ' |
Office and other equipment | $3,862 | $3,193 | $2,103 |
Furniture and fixtures | 663 | 475 | 389 |
Leasehold improvements | 1,665 | 1,354 | 512 |
Property and equipment, gross | 6,190 | 5,022 | 3,004 |
Less: accumulated depreciation and amortization | -3,731 | -2,738 | -1,989 |
Property and equipment, net | $2,459 | $2,284 | $1,015 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Property Plant And Equipment [Abstract] | ' | ' | ' | ' | ' |
Depreciation expense | $929 | $482 | $742 | $405 | $313 |
Acquired_Intangible_Assets_Net2
Acquired Intangible Assets, Net - Summary of Acquired Intangible Assets, Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Thousands, unless otherwise specified | ||||||
Acquired Intangible Assets [Line Items] | ' | ' | ' | |||
Less: accumulated amortization | ($1,390) | ($554) | ($56) | |||
Acquired intangible assets, net | 1,020 | 1,496 | 94 | |||
Montage Macao License [Member] | ' | ' | ' | |||
Acquired Intangible Assets [Line Items] | ' | ' | ' | |||
Acquired intangible assets | 129 | [1] | 0 | [1] | 0 | [1] |
Assembled Workforce [Member] | ' | ' | ' | |||
Acquired Intangible Assets [Line Items] | ' | ' | ' | |||
Acquired intangible assets, gross | 1,900 | [2] | 1,900 | [2] | 0 | [2] |
Technology Licenses [Member] | ' | ' | ' | |||
Acquired Intangible Assets [Line Items] | ' | ' | ' | |||
Acquired intangible assets, gross | 116 | 150 | 150 | |||
Software [Member] | ' | ' | ' | |||
Acquired Intangible Assets [Line Items] | ' | ' | ' | |||
Acquired intangible assets, gross | $265 | $0 | $0 | |||
[1] | Montage Macao license (unaudited). 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. | |||||
[2] | 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. |
Acquired_Intangible_Assets_Net3
Acquired Intangible Assets, Net - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' |
Amortization expenses | $986 | $162 | $498 | $178 | $500 |
Estimated amortization expenses for the three months ended December 31,2013 | 324 | ' | ' | ' | ' |
Estimated amortization expenses for the year 2013 | ' | ' | 1,285 | ' | ' |
Estimated amortization expenses for the year 2014 | 240 | ' | 211 | ' | ' |
Estimated amortization expenses for the year 2015 | 24 | ' | 0 | ' | ' |
Estimated amortization expenses for the year 2016 | 23 | ' | 0 | ' | ' |
Estimated amortization expenses for the year 2017 | $23 | ' | $0 | ' | ' |
Acquired_Intangible_Assets_Net4
Acquired Intangible Assets, Net - Summary of Acquired Intangible Assets, Net (Parenthetical) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | 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 | $1,926 | $159 | $90 | ' | ' | ' | $129 |
ShortTerm_Loans_Additional_Inf
Short-Term Loans - Additional Information (Detail) (USD $) | 1 Months Ended | |||
Feb. 28, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
Short-term bank loans outstanding, weighted average interest rate per annum | ' | ' | 5.88% | 6.35% |
Short-term bank loans, repaid | $795,500 | $795,500 | ' | ' |
Accrued_Liabilities_Schedule_o
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Thousands, unless otherwise specified | ||||||
Payables And Accruals [Abstract] | ' | ' | ' | |||
Government funding for research and development projects | $3,893 | [1] | $3,055 | [1] | $3,273 | [1] |
Accrued employee compensation and other employee expenses | 3,504 | 4,505 | 2,196 | |||
Accrued research and development expenses | 0 | 28 | 1,317 | |||
Accrued royalty on licensed technology | 0 | 0 | 466 | |||
Advances from customers | 267 | 230 | 141 | |||
Accrued warranty | 187 | 149 | 111 | |||
Accrued professional service fee | 3,484 | 497 | 33 | |||
Proceeds received for early exercised options | 8 | 0 | 9 | |||
Other accrued liabilities | 598 | 644 | 545 | |||
Accrued liabilities | $11,941 | $9,108 | $8,091 | |||
[1] | For the nine months ended September 30, 2012 and 2013, the Company recorded $1,025 (unaudited) and $396 (unaudited) 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 (unaudited), 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. |
Accrued_Liabilities_Schedule_o1
Accrued Liabilities - Schedule of Accrued Liabilities (Parenthetical) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||
Payables And Accruals [Abstract] | ' | ' | ' | ' | ' | |||
Government funding deduction to expense | $396 | $1,025 | $1,025 | $0 | $0 | |||
Government funding for research and development projects | $3,893 | [1] | ' | $3,055 | [1] | $3,273 | [1] | ' |
[1] | For the nine months ended September 30, 2012 and 2013, the Company recorded $1,025 (unaudited) and $396 (unaudited) 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 (unaudited), 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_Components
Deferred Margin, Net - Components of Deferred Margin, Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
In Thousands, unless otherwise specified | ||||||
Deferred Revenue Disclosure [Abstract] | ' | ' | ' | ' | ' | ' |
Deferred revenue | $20,146 | $15,878 | ' | $12,685 | ' | ' |
Deferred cost of revenue | -18,601 | -14,678 | ' | -7,538 | ' | ' |
Deferred margin, net | $1,545 | $1,200 | $1,008 | $5,147 | $828 | $1,979 |
Deferred_Margin_Net_Deferred_R
Deferred Margin, Net - Deferred Revenue and Deferred Cost of Revenue on Sales to Distributor (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Deferred Revenue Disclosure [Abstract] | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $1,200 | $5,147 | $5,147 | $828 | $1,979 |
Revenue deferred upon shipment to distributors | 33,847 | 27,734 | 40,456 | 53,085 | 23,739 |
Cost of sales deferred upon shipments to distributors | -26,952 | -18,509 | -31,655 | -23,426 | -14,933 |
Revenue recognized upon resale from distributors to end customers | -29,126 | -26,295 | -37,007 | -43,747 | -23,780 |
Cost of sales recognized upon resale from distributors to end customers | 23,029 | 13,126 | 24,515 | 18,066 | 15,247 |
Price adjustments to distributors | -453 | -195 | -256 | 341 | -1,424 |
Balance at the end of period | $1,545 | $1,008 | $1,200 | $5,147 | $828 |
Deferred_Margin_Net_Revenue_Re
Deferred Margin, Net - Revenue Recognized Upon Resale from Distributors to End Customers (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||||
Deferred Margin, Net [Line Items] | ' | ' | ' | ' | ' | |||||
Revenue | $75,448 | $54,538 | $78,245 | $50,338 | $29,078 | |||||
Resale from Distributors to End Customers [Member] | ' | ' | ' | ' | ' | |||||
Deferred Margin, Net [Line Items] | ' | ' | ' | ' | ' | |||||
Revenue | 29,126 | 26,295 | 37,007 | 43,747 | 23,780 | |||||
Resale from LQW to End Customers [Member] | ' | ' | ' | ' | ' | |||||
Deferred Margin, Net [Line Items] | ' | ' | ' | ' | ' | |||||
Revenue | 38,115 | [1] | 17,998 | [1] | 29,007 | [1] | 0 | [1] | 0 | [1] |
Sales Directly to End Customers [Member] | ' | ' | ' | ' | ' | |||||
Deferred Margin, Net [Line Items] | ' | ' | ' | ' | ' | |||||
Revenue | $8,207 | $10,245 | $12,231 | $6,591 | $5,298 | |||||
[1] | LQW has been a distributor for the Company's products since October 2011 and no revenue was recognized through sales by LQW for the year ended December 31, 2011. As discussed in note 1n, 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_S
Convertible Preferred Shares - Summary of Convertible Preferred Shares (Detail) (USD $) | Sep. 06, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||||
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 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 Convertible Preferred Shares [Member] | Series B Convertible Preferred Shares [Member] | Series B Issued Upon Exercise of Warrant [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-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] | 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] | Convertible Preferred Shares [Member] | |||||
Date 1 [Member] | Date 1 [Member] | Date 2 [Member] | Date 2 [Member] | Date 1 [Member] | Date 1 [Member] | Date 1 [Member] | Date 1 [Member] | Date 2 [Member] | Date 2 [Member] | Date 3 [Member] | Date 3 [Member] | ||||||||||||||||||||||
Temporary Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Convertible Preferred Shares, Weighted Average Subscription Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.80 | $2.80 | [1] | $2.80 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ||
Convertible Preferred Shares, Issuance date | ' | ' | ' | ' | 23-Apr-04 | 23-Apr-04 | 31-Aug-04 | 31-Aug-04 | ' | ' | ' | 19-Jun-06 | 19-Jun-06 | 20-Dec-07 | 20-Dec-07 | 18-May-07 | 18-May-07 | ' | ' | ' | ' | 8-Oct-09 | 8-Oct-09 | 22-Oct-09 | 22-Oct-09 | 30-Jun-10 | 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 | $0.01 | $0.01 | $0.01 | $0.01 | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Convertible Preferred Shares, Subscription Price Per Share | ' | $1.25 | $1.25 | ' | ' | ' | ' | ' | ' | ' | ' | $3.23 | $3.23 | $2.54 | $2.54 | $4.00 | $4.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Convertible preferred shares, shares authorized | ' | 4,800,000 | 4,800,000 | 4,800,000 | ' | ' | ' | ' | 4,681,416 | 4,681,416 | 4,681,416 | 4,681,416 | [2] | 4,681,416 | [2] | ' | ' | 4,551,709 | 4,551,709 | 4,551,709 | ' | 3,571,514 | 3,571,514 | ' | ' | ' | ' | ' | ' | 17,604,639 | 17,604,639 | ||
Convertible Preferred Shares, Shares Outstanding | ' | 4,800,000 | 4,800,000 | 4,800,000 | ' | ' | ' | ' | 4,255,843 | 4,255,843 | 4,255,843 | 3,325,843 | 3,325,843 | 930,000 | 930,000 | 4,049,276 | 4,049,276 | 4,049,276 | ' | 2,839,409 | 2,839,409 | ' | ' | ' | ' | ' | ' | 15,944,528 | 15,944,528 | ||||
Convertible Preferred Shares, Carrying Amount | ' | $6,000 | $6,000 | $6,000 | ' | ' | ' | ' | $17,020 | $17,020 | $17,020 | $13,949 | $13,949 | $3,071 | $3,071 | $21,048 | $21,048 | $21,048 | ' | $10,332 | $10,309 | ' | ' | ' | ' | ' | ' | $54,400 | $54,377 | ||||
Convertible preferred shares, liquidation value | ' | $6,000 | $6,000 | $6,000 | ' | ' | ' | ' | $13,092 | $13,092 | $13,092 | $10,730 | $10,730 | $2,362 | $2,362 | $16,191 | $16,191 | $16,191 | ' | $7,947 | $7,947 | ' | ' | ' | ' | ' | ' | $43,230 | $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 | 12 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Aug. 18, 2010 | Sep. 30, 2013 | Aug. 18, 2010 | Sep. 30, 2013 | |||
Qualified IPO [Member] | Qualified IPO [Member] | Series B-2 Convertible Preferred Share [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 | ' | ' | ' | ' | ' | ' | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share reserved as available for conversion of preferred share | 16,163,598 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Weighted Average Subscription price per share | ' | ' | ' | ' | ' | ' | ' | $2.80 | $2.80 | [1] | $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% | ' | ' | ||
Aggregate amount of redemption for all issued redeemable preferred shares each year for five years | ' | ' | 48,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrants to purchase convertible preferred shares, issued | ' | ' | ' | ' | ' | ' | ' | ' | 1,239,227 | ' | ' | ' | ' | ' | ' | ||
Warrants issued, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | 1.25 | ' | ' | ' | ' | ' | ' | ||
Cash consideration, exercise of warrants | 0 | 0 | 0 | 0 | 1,545,000 | ' | ' | 1,549,000 | ' | ' | ' | ' | ' | ' | ' | ||
Extinguishment of warrant liabilities recorded in the carrying value of Series B-2 | ' | ' | ' | ' | 1,989,000 | ' | ' | 1,989,000 | ' | ' | ' | ' | ' | ' | ' | ||
Change in fair value of warrants | $0 | $0 | $0 | $0 | $37,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[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 Series B, B-1 and B-2 Convertible Preferred Shares (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Summary Activity In Gold Bullion [Line Items] | ' | ' | ' | ' | ' |
Convertible Preferred Shares, Accretion to the Carrying Value | ' | ' | $55 | $1,147 | $2,513 |
Series B Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' |
Summary Activity In Gold Bullion [Line Items] | ' | ' | ' | ' | ' |
Convertible Preferred Shares, First Possible Redemption Date | ' | ' | 19-Jun-11 | ' | ' |
Convertible Preferred Shares, Accretion to the Carrying Value | ' | ' | 0 | 444 | 905 |
Series B Issued Upon Exercise of Warrant [Member] | ' | ' | ' | ' | ' |
Summary Activity In Gold Bullion [Line Items] | ' | ' | ' | ' | ' |
Convertible Preferred Shares, First Possible Redemption Date | ' | ' | 19-Jun-11 | ' | ' |
Convertible Preferred Shares, Accretion to the Carrying Value | ' | ' | 0 | 26 | 55 |
Series B-1 Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' |
Summary Activity In Gold Bullion [Line Items] | ' | ' | ' | ' | ' |
Convertible Preferred Shares, First Possible Redemption Date | ' | ' | 19-Jun-11 | ' | ' |
Convertible Preferred Shares, Accretion to the Carrying Value | ' | ' | 0 | 623 | 1,274 |
Series B-2 Convertible Preferred Share [Member] | ' | ' | ' | ' | ' |
Summary Activity In Gold Bullion [Line Items] | ' | ' | ' | ' | ' |
Convertible Preferred Shares, First Possible Redemption Date | 1-Jan-14 | ' | 1-Jun-13 | ' | ' |
Convertible Preferred Shares, Accretion to the Carrying Value | $23 | $42 | $55 | $54 | $279 |
Convertible_Preferred_Shares_S2
Convertible Preferred Shares - Summary of Fair Value of Warrants under Black-Scholes Pricing Model (Detail) | 12 Months Ended | |
Dec. 31, 2010 | ||
Fair Value Assumptions And Methodology For Assets And Liabilities [Abstract] | ' | |
Expected volatility (%) | 43.55% | [1] |
Expected dividend yield (%) | 0.00% | [2] |
Expected term (years) | '6 months | [3] |
Risk-free interest rate (per annum) (%) | 1.16% | [4] |
[1] | The expected volatility was estimated based on the historical volatility of comparable companies in the period equal to average time to expiration. | |
[2] | The expected dividends are considered to be zero because the Company has no history or expectation of paying dividends on its ordinary shares. | |
[3] | The expected term was determined based on the period between the valuation date and the expiration date as the warrants are transferable. | |
[4] | The risk-free interest rates are based on the yield of government securities with similar time duration as the expected term. |
Convertible_Preferred_Shares_S3
Convertible Preferred Shares - Schedule of Changes in Fair Value of Warrant Liabilities (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Temporary Equity Disclosure [Abstract] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | $0 | $1,952 |
Changes in the fair value prior to warrant exercise on June 30, 2010 | 0 | 0 | 0 | 0 | 37 |
Transferred warrant liabilities to carrying value of Series B-2 preferred shares | ' | ' | ' | ' | -1,989 |
Ending Balance | ' | ' | ' | ' | $0 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Aug. 13, 2013 | Apr. 30, 2013 | Apr. 23, 2013 | Sep. 30, 2013 |
2006 Share Incentive Plan [Member] | 2006 Share Incentive Plan [Member] | 2006 Share Incentive Plan [Member] | 2013 Performance Incentive Plan [Member] | Early Exercise of Employee Share Options [Member] | Early Exercise of Employee Share Options [Member] | Early Exercise of Employee Share Options [Member] | Share Options [Member] | Share Options [Member] | Share Options [Member] | Share Options [Member] | Share Options [Member] | Non-Employee Stock Option [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | ||||||
Installment | 2006 Share Incentive Plan [Member] | 2006 Share Incentive Plan [Member] | 2006 Share Incentive Plan [Member] | 2006 Share Incentive Plan [Member] | 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 | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | 25.00% | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' |
Number of ordinary shares authorized under equity award issuance plan | 6,566,544 | ' | 6,566,544 | ' | ' | 6,566,544 | 6,566,544 | 4,656,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Automatic share limit increase description | ' | ' | ' | ' | ' | ' | ' | ' | '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. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price as a percentage of fair market value for share option grants to 10% owner of ordinary shares | ' | ' | ' | ' | ' | ' | ' | ' | 110.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting, 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. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Share-based compensation in connection with grant of share options | $1,958 | $682 | $989 | $631 | $778 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500 | 0 | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested, exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from early exercise of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 0 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value for stock options vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100 | 646 | 860 | 561 | 762 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,091 | ' | 4,100 | ' | ' | ' | ' | ' | ' | ' | ' | 4,698 |
Expected weighted average period of compensation cost to be recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 8 months 9 days | ' | '3 years 3 months 29 days | ' | ' | ' | '3 years 11 months 19 days | ' | ' | ' | ' | ' |
Number of restricted shares, granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 330,620 | 13,500 | 13,500 | 317,120 | 317,120 | ' |
Estimated fair value of RSA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17.98 | ' | ' | ' | ' | ' |
Share-based compensation expense | $2,462 | $682 | $989 | $631 | $778 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $504 | ' | ' | ' | ' | ' |
ShareBased_Compensation_Assump
Share-Based Compensation - Assumptions Used in Valuation of Fair Value of Share Options Granted (Detail) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Risk-free interest rate, minimum | 1.11% | 1.10% | 1.10% | 1.42% | 2.37% |
Risk-free interest rate, maximum | 3.53% | 3.13% | 3.13% | 4.52% | 4.53% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Volatility, minimum | 39.69% | 43.81% | 39.97% | 49.29% | 50.21% |
Volatility, maximum | 49.75% | 52.66% | 52.66% | 57.46% | 63.99% |
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 | '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 | '10 years |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Information Regarding Options Outstanding (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Number of Shares, Outstanding, Beginning Balance | 2,734,688 | 2,319,208 | 2,037,032 |
Number of Shares, Granted | 1,330,760 | 539,920 | 427,200 |
Number of Shares, Exercised | 263,667 | 106,220 | 69,333 |
Number of Shares, Forfeited | 26,019 | 3,763 | 50,129 |
Number of Shares, Canceled | 4,669 | 14,457 | 25,562 |
Number of Shares, Outstanding, Ending Balance | 3,771,093 | 2,734,688 | 2,319,208 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $2.40 | $0.78 | $0.50 |
Number of Shares, Exercisable at September 30, 2013 | 3,146,996 | 2,237,280 | ' |
Weighted Average Exercise Price, Granted | $17.68 | $8.95 | $2.15 |
Number of Shares, Vested at September 30, 2013 | 1,883,245 | ' | ' |
Weighted Average Exercise Price, Exercised | $0.30 | $0.63 | $0.88 |
Number of Shares, Vested and expected to vest at September 30, 2013 | 3,611,003 | ' | ' |
Weighted Average Exercise Price, Forfeited | $10.64 | $2.20 | $1.30 |
Weighted Average Exercise Price, Canceled | $0.99 | $0.48 | $0.53 |
Weighted Average Exercise Price, Outstanding, Ending balance | $7.89 | $2.40 | $0.78 |
Weighted Average Exercise Price, Exercisable at September 30, 2013 | $7.21 | $1.70 | ' |
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 end of period | '7 years | '6 years 1 month 28 days | ' |
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 $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Operating Expenses | ' | ' | ' | ' | ' |
Share-based compensation expense | $2,462 | $682 | $989 | $631 | $778 |
Share Options [Member] | Cost of Net Revenue [Member] | ' | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' | ' |
Share-based compensation expense | 30 | 15 | 19 | 13 | 31 |
Share Options [Member] | Research and Development [Member] | ' | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' | ' |
Share-based compensation expense | 715 | 347 | 497 | 356 | 358 |
Share Options [Member] | Sales, General and Administrative [Member] | ' | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' | ' |
Share-based compensation expense | 1,213 | 320 | 473 | 262 | 389 |
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 | 32 | ' | ' | ' | ' |
Restricted Share Awards [Member] | Research and Development [Member] | ' | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' | ' |
Share-based compensation expense | 409 | ' | ' | ' | ' |
Restricted Share Awards [Member] | Sales, General and Administrative [Member] | ' | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' | ' |
Share-based compensation expense | $63 | ' | ' | ' | ' |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Information about Share Options Outstanding (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Share Options Outstanding, Share Outstanding | 3,771,093 | 2,734,687 | ' | ' |
Share Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '7 years | '6 years 1 month 28 days | ' | ' |
Share Options Outstanding, Weighted Average Exercise Price | $7.89 | $2.40 | $0.78 | $0.50 |
Share Options Exercisable, Shares Exercisable | 3,146,996 | 2,237,280 | ' | ' |
Share Options Exercisable, Weighted Average Exercise Price | $7.21 | $1.70 | ' | ' |
$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 | 1,008,800 | ' | ' |
Share Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '2 years 9 months | '3 years 5 months 23 days | ' | ' |
Share Options Outstanding, Weighted Average Exercise Price | $0.13 | $0.13 | ' | ' |
Share Options Exercisable, Shares Exercisable | 789,600 | 1,008,800 | ' | ' |
Share Options Exercisable, Weighted Average Exercise Price | $0.13 | $0.13 | ' | ' |
Range of Exercise Prices, minimum | $0.13 | $0.13 | ' | ' |
Range of Exercise Prices, maximum | $0.25 | $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 | 802,980 | ' | ' |
Share Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '5 years 2 months 27 days | '6 years 26 days | ' | ' |
Share Options Outstanding, Weighted Average Exercise Price | $0.96 | $0.98 | ' | ' |
Share Options Exercisable, Shares Exercisable | 735,166 | 752,897 | ' | ' |
Share Options Exercisable, Weighted Average Exercise Price | $0.96 | $0.98 | ' | ' |
Range of Exercise Prices, minimum | $0.40 | $0.40 | ' | ' |
Range of Exercise Prices, maximum | $1.03 | $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 | 922,907 | ' | ' |
Share Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '8 years 5 months 9 days | '9 years 2 months 9 days | ' | ' |
Share Options Outstanding, Weighted Average Exercise Price | $6.11 | $6.18 | ' | ' |
Share Options Exercisable, Shares Exercisable | 581,830 | 475,583 | ' | ' |
Share Options Exercisable, Weighted Average Exercise Price | $6.08 | $6.18 | ' | ' |
Range of Exercise Prices, minimum | $2.20 | $2.20 | ' | ' |
Range of Exercise Prices, maximum | $9.43 | $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, minimum | $16.03 | ' | ' | ' |
Range of Exercise Prices, maximum | $17.85 | ' | ' | ' |
ShareBased_Compensation_Summar2
Share-Based Compensation - Summary of Details Related to RSAs, Granted and Outstanding (Detail) (Restricted Share Awards [Member], USD $) | 9 Months Ended | |
Sep. 30, 2013 | ||
Restricted Share Awards [Member] | ' | |
Schedule Of Employee Service Share Based Compensation Expense Allocation [Line Items] | ' | |
Weighted-Average Grant Date Fair Value Per Share, Outstanding, Beginning balance | $0 | |
Weighted-Average Grant Date Fair Value Per Share, Granted | $17.98 | |
Weighted-Average Grant Date Fair Value Per Share, Vested | $0 | |
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 | 0 | |
Number of Shares, Granted | 330,620 | |
Number of Shares, Vested | 0 | |
Number of Shares, Forfeited | 8,200 | |
Number of Shares, Outstanding, Ending balance | 322,420 | [1] |
[1] | The restricted shares are not included in the outstanding ordinary shares due to their restrictions. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Effective tax rate | 9.20% | 6.30% | 6.29% | 34.66% | -0.63% | ' |
Tax exemption description | 'As a qualified integrated circuit design enterprise, the Company's principal PRC operating subsidiary is entitled to a two-year enterprise income tax exemption followed by a three-year 50% enterprise income tax rate reduction commencing from the first profit-making year, which was 2010. As a result, the Company's principal PRC operating subsidiary was exempt from PRC enterprise income tax in 2010 and 2011 and enjoys a preferential 12.5% enterprise income tax from 2012 through 2014. | ' | ' | ' | ' | ' |
Decrease in corporate income tax | 50.00% | ' | ' | ' | ' | ' |
Operating losses carried forward years to offset future taxable income | '5 years | ' | ' | ' | ' | ' |
Provision for income tax | $1,709,000 | $980,000 | $1,228,000 | $2,637,000 | $54,000 | ' |
Foreign tax rate differential | ' | ' | -21.24% | -8.80% | -19.07% | ' |
Deferred tax assets | ' | ' | 719,000 | 837,000 | 625,000 | ' |
Deferred tax assets, valuation allowance | ' | ' | 51,000 | 126,000 | 573,000 | ' |
Interest and penalties accrued | ' | ' | 3,000 | 11,000 | 10,000 | ' |
Unrecognized tax benefit | ' | ' | 6,608,000 | 5,851,000 | 2,215,000 | 1,411,000 |
Unrecognized tax benefits that would affect the effective tax rate | 6,900,000 | ' | ' | ' | ' | ' |
Research Tax Credit Carryforward [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefit | $17,140,000 | ' | ' | ' | ' | ' |
Scenario One [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Enterprise income tax exemption period | '2 years | ' | ' | ' | ' | ' |
Scenario Two [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Enterprise income tax exemption period | '3 years | ' | ' | ' | ' | ' |
PRC Subsidiaries [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Effective tax rate | ' | ' | 12.50% | 0.00% | 0.00% | ' |
California [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Effective tax rate | 8.80% | ' | ' | ' | ' | ' |
Hong Kong [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Effective tax rate | 16.50% | ' | ' | ' | ' | ' |
Taiwan [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Effective tax rate | 17.00% | ' | ' | ' | ' | ' |
PRC [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Effective tax rate | 25.00% | ' | ' | ' | ' | ' |
PRC [Member] | Tax Exemption [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Effective tax rate | 12.50% | ' | ' | ' | ' | ' |
Minimum [Member] | United States [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Effective tax rate | 15.00% | ' | ' | ' | ' | ' |
Maximum [Member] | United States [Member] | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Effective tax rate | 35.00% | ' | ' | ' | ' | ' |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income (Loss) Before Income Taxes (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Schedule Of Income (Loss) Before Income Tax [Line Items] | ' | ' | ' | ' | ' |
Income (loss) before income taxes | $18,522 | $15,574 | $19,509 | $7,609 | ($8,489) |
China Operations [Member] | ' | ' | ' | ' | ' |
Schedule Of Income (Loss) Before Income Tax [Line Items] | ' | ' | ' | ' | ' |
Income (loss) before income taxes | ' | ' | 2,241 | 5,952 | 319 |
Non China Operations [Member] | ' | ' | ' | ' | ' |
Schedule Of Income (Loss) Before Income Tax [Line Items] | ' | ' | ' | ' | ' |
Income (loss) before income taxes | ' | ' | $17,268 | $1,657 | ($8,808) |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Provision (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Current: | ' | ' | ' | ' | ' |
Current tax expense | ' | ' | $1,151 | $3,297 | $76 |
Deferred: | ' | ' | ' | ' | ' |
Deferred tax expense | ' | ' | 77 | -660 | -22 |
Provision for income taxes | 1,709 | 980 | 1,228 | 2,637 | 54 |
China Operations [Member] | ' | ' | ' | ' | ' |
Current: | ' | ' | ' | ' | ' |
Current tax expense | ' | ' | 263 | 178 | 0 |
Deferred: | ' | ' | ' | ' | ' |
Deferred tax expense | ' | ' | -159 | -208 | -22 |
Non China Operations [Member] | ' | ' | ' | ' | ' |
Current: | ' | ' | ' | ' | ' |
Current tax expense | ' | ' | 888 | 3,119 | 76 |
Deferred: | ' | ' | ' | ' | ' |
Deferred tax expense | ' | ' | $236 | ($452) | $0 |
Income_Taxes_Summary_of_Income1
Income Taxes - Summary of Income Tax Provision Differed from Amounts Computed by Applying Statutory Income Tax Rate (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income tax at statutory rate | ' | ' | $4,877 | $1,902 | ($2,122) |
Foreign tax rate differential | ' | ' | -4,144 | -670 | 1,619 |
Tax holiday benefit | ' | ' | -161 | -1,746 | -374 |
Change in valuation allowance | ' | ' | -75 | -447 | -63 |
Provision for uncertain tax position | ' | ' | 760 | 3,646 | 814 |
Others | ' | ' | -29 | -48 | 180 |
Provision for income taxes | $1,709 | $980 | $1,228 | $2,637 | $54 |
Income_Taxes_Schedule_of_Recon
Income Taxes - Schedule of Reconciliation of Statutory Income Tax Rate and Company's Effective Tax Rate (Detail) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income tax at statutory rate | ' | ' | 25.00% | 25.00% | 25.00% |
Foreign tax rate differential | ' | ' | -21.24% | -8.80% | -19.07% |
Tax holiday benefit | ' | ' | -0.83% | -22.95% | 4.41% |
Change in valuation allowance | ' | ' | -0.38% | -5.87% | 0.74% |
Provision for uncertain tax position | ' | ' | 3.89% | 47.91% | -9.59% |
Others | ' | ' | -0.15% | -0.63% | -2.12% |
Effective tax rate | 9.20% | 6.30% | 6.29% | 34.66% | -0.63% |
Income_Taxes_Summary_of_Aggreg
Income Taxes - Summary of Aggregated Amount and Per Ordinary Share Effect of Tax Holiday (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Tax Holiday [Line Items] | ' | ' | ' |
The aggregated dollar effect | $161 | $1,746 | $374 |
Basic [Member] | ' | ' | ' |
Income Tax Holiday [Line Items] | ' | ' | ' |
Per ordinary share effect - basic | $0.04 | $0.41 | $0.09 |
Diluted [Member] | ' | ' | ' |
Income Tax Holiday [Line Items] | ' | ' | ' |
Per ordinary share effect - basic | $0.03 | $0.29 | $0.09 |
Income_Taxes_Summary_of_Signif
Income Taxes - Summary of Significant Portions of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | |||
Deferred tax assets: | ' | ' | ' |
Deferred revenue, accruals and reserves | $586 | $681 | $396 |
Depreciation and amortization | 83 | 69 | 51 |
Net operating loss carryforwards | 50 | 87 | 178 |
Total deferred tax assets | 719 | 837 | 625 |
Less: valuation allowance | -51 | -126 | -573 |
Deferred tax assets, net | 668 | 711 | 52 |
Deferred tax liabilities: | ' | ' | ' |
Prepaid expense | -34 | 0 | 0 |
Deferred tax liabilities | ($34) | $0 | $0 |
Income_Taxes_Summary_of_Compan
Income Taxes - Summary of Company's Unrecognized Tax Benefit (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Beginning balance | $5,851 | $2,215 | $1,411 |
Increases related to prior year tax positions | 0 | 0 | 0 |
Increases related to current year tax positions | 757 | 3,636 | 804 |
Ending balance | $6,608 | $5,851 | $2,215 |
Net_Income_Loss_Per_Share_Comp
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Ordinary Share (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Numerator | ' | ' | ' | ' | ' |
Net income (loss) | $16,813 | $14,594 | $18,281 | $4,972 | ($8,543) |
Less: Accretion to preferred shares | -23 | -42 | -55 | -1,147 | -2,513 |
Less: Allocation of net income to participating preferred shares and restricted shares | -13,651 | -12,038 | -15,112 | -3,748 | 0 |
Numerator for basic calculation | 3,139 | 2,514 | 3,114 | 77 | -11,056 |
Undistributed earnings re-allocated to ordinary shareholders | 926 | 847 | 1,059 | 22 | 0 |
Numerator for diluted calculation | $4,065 | $3,361 | $4,173 | $99 | ($11,056) |
Denominator | ' | ' | ' | ' | ' |
Denominator for basic calculation, weighted-average number of shares of ordinary share outstanding | 4,618,302 | 4,303,135 | 4,319,243 | 4,260,192 | 4,157,498 |
Dilutive effect of share option | 1,926,644 | 1,991,931 | 2,047,439 | 1,664,198 | 0 |
Dilutive effect of restricted shares and awards | 12,422 | 0 | 0 | 0 | 0 |
Denominator for diluted calculation | 6,557,368 | 6,295,066 | 6,366,682 | 5,924,390 | 4,157,498 |
Net income (loss) per share | ' | ' | ' | ' | ' |
Basic | $0.68 | $0.58 | $0.72 | $0.02 | ($2.66) |
Diluted | $0.62 | $0.53 | $0.66 | $0.02 | ($2.66) |
Net_Income_Loss_Per_Share_Addi
Net Income (Loss) Per Share - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Aug. 31, 2013 | Aug. 13, 2013 | Apr. 30, 2013 | Apr. 23, 2013 |
Restricted Share Awards [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | Restricted Share Awards [Member] | ||||||
2006 Share Incentive Plan [Member] | 2006 Share Incentive Plan [Member] | 2006 Share Incentive Plan [Member] | 2006 Share Incentive Plan [Member] | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restricted shares, granted | ' | ' | ' | ' | ' | 330,620 | 13,500 | 13,500 | 317,120 | 317,120 |
Noncumulative dividend percentage | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncumulative dividend of preferred shares | $2,594 | $2,594 | $3,459 | $3,459 | ' | ' | ' | ' | ' | ' |
Undistributed earnings attributable to preferred shares and unvested restricted shares | 11,057 | 9,444 | 11,653 | 289 | ' | ' | ' | ' | ' | ' |
Net income allocated to participating preferred shares and unvested restricted shares | 926 | 847 | 1,059 | 22 | 0 | ' | ' | ' | ' | ' |
Undistributed earnings re-allocated to ordinary shares | $926 | $847 | $1,059 | $22 | ' | ' | ' | ' | ' | ' |
Net_Income_Loss_Per_Share_Sche
Net Income (Loss) Per Share - Schedule of Anti-dilutive Shares not Included in Calculation of Diluted Net Loss Per Share (Detail) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' |
Anti-dilutive securities | 16,163,598 | 16,163,598 | 16,163,598 | 16,163,598 | 17,993,152 |
Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' |
Anti-dilutive securities | 16,163,598 | 16,163,598 | 16,163,598 | 16,163,598 | 15,411,033 |
Ordinary Shares [Member] | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' |
Anti-dilutive securities | 0 | 0 | 0 | 0 | 1,967,598 |
Warrants to purchase convertible preferred shares [Member] | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' |
Anti-dilutive securities | 0 | 0 | 0 | 0 | 614,521 |
Net_Income_Loss_Per_Share_Sche1
Net Income (Loss) Per Share - Schedule of Equity Awards not Included In Calculation of Diluted Net Income (Loss) Per Share (Detail) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
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 | 17,993,152 |
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 | 1,726,480 | 417,120 | 154,906 | 93,624 | 86,650 |
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 $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Revenue | $75,448 | $54,538 | $78,245 | $50,338 | $29,078 |
Hong Kong [Member] | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Revenue | 68,404 | 50,002 | 72,570 | 48,911 | 27,382 |
Asia Pacific [Member] | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Revenue | 2,782 | 1,236 | 1,325 | 44 | 581 |
United States [Member] | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Revenue | 2,655 | 2,644 | 3,160 | 1,115 | 977 |
Europe [Member] | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Revenue | $1,607 | $656 | $1,190 | $268 | $138 |
Segment_and_Geographic_Informa4
Segment and Geographic Information - Summary of Company's Revenue Generated from Sales of Semiconductors Solutions (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | $75,448 | $54,538 | $78,245 | $50,338 | $29,078 |
Home Entertainment [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 68,371 | 50,614 | 73,611 | 48,995 | 27,991 |
Cloud Computing Market [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | $7,077 | $3,924 | $4,634 | $1,343 | $1,087 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Summary of Future Minimum Lease Payment under Noncancelable Operating Leases And Purchase Commitments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Total contractual obligations | $4,131 | $2,861 |
Total contractual obligations, Less than 1 Year | 1,985 | 2,078 |
Total contractual obligations, 1 - 3 Years | 1,877 | 783 |
Total contractual obligations, 3 - 5 Years | 269 | 0 |
Purchase obligations, Total | 1,670 | 1,086 |
Purchase obligations, Less than 1 Year | 1,670 | 1,086 |
Purchase obligations, 1 - 3 Years | 0 | 0 |
Purchase obligations, 3 - 5 Years | 0 | 0 |
Operating lease obligations, Total | 2,461 | 1,775 |
Operating lease obligations, Less than 1 Year | 315 | 992 |
Operating lease obligations, 1 - 3 Years | 1,877 | 783 |
Operating lease obligations, 3 - 5 Years | $269 | $0 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Commitments And Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' |
Rental expenses | $917 | $517 | $887 | $489 | $373 |
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 | Dec. 31, 2011 | |
Class of Stock [Line Items] | ' | ' | ' | ' |
Reverse share split | '2.5-for-1 | ' | ' | ' |
Ordinary Shares, par value | $0.01 | $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 | Sep. 30, 2013 | Dec. 31, 2012 |
Convertible Preferred Shares [Member] | Convertible Preferred Shares [Member] | ||
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). | ' | ' |
Carrying value of the convertible preferred shares | ' | $54,400 | $54,377 |
Pro_Forma_Balance_Sheet_and_Ne3
Pro Forma Balance Sheet and Net Income per Share for Conversion of Preferred Shares (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Numerator: | ' | ' | ' | ' | ' |
Actual net income attributable to ordinary shareholders | $3,139 | $2,514 | $3,114 | $77 | ($11,056) |
Pro-forma effect of preferred shares | 13,674 | ' | 15,167 | ' | ' |
Net income (loss) | $16,813 | $14,594 | $18,281 | $4,972 | ($8,543) |
Actual weighted average number of ordinary shares outstanding | ' | ' | ' | ' | ' |
Basic | 4,618,302 | 4,303,135 | 4,319,243 | 4,260,192 | 4,157,498 |
Diluted | 6,557,368 | 6,295,066 | 6,366,682 | 5,924,390 | 4,157,498 |
Pro-forma effect of preferred shares | 16,163,598 | ' | 16,163,598 | ' | ' |
Denominator for pro-forma basic and diluted calculation | ' | ' | ' | ' | ' |
Basic | 20,781,900 | ' | 20,482,841 | ' | ' |
Diluted | 22,720,966 | ' | 22,530,280 | ' | ' |
Pro-forma basic and diluted loss per share attributable to ordinary shareholders | ' | ' | ' | ' | ' |
Basic | $0.81 | ' | $0.89 | ' | ' |
Diluted | $0.74 | ' | $0.81 | ' | ' |
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 |
Additional_Information_Condens2
Additional Information - Condensed Financial Statements of the Company - Condensed Balance Sheets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
In Thousands, unless otherwise specified | ||||||
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $41,181 | $21,580 | $23,199 | $23,343 | $13,318 | $12,533 |
Inventories | 9,830 | 11,116 | ' | 6,981 | ' | ' |
Prepaid expenses and other current assets | 2,591 | 2,000 | ' | 1,798 | ' | ' |
Total current assets | 70,801 | 49,409 | ' | 38,466 | ' | ' |
Property and equipment, net | 2,459 | 2,284 | ' | 1,015 | ' | ' |
Acquired intangible asset, net | 1,020 | 1,496 | ' | 94 | ' | ' |
Deferred offering costs | 3,240 | 283 | ' | 0 | ' | ' |
Total assets | 77,850 | 53,802 | ' | 39,866 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Accounts payable | 5,345 | 3,719 | ' | 6,855 | ' | ' |
Accrued liabilities | 11,941 | 9,108 | ' | 8,091 | ' | ' |
Deferred margin, net | 1,545 | 1,200 | 1,008 | 5,147 | 828 | 1,979 |
Income tax payable | 1,422 | 261 | ' | 42 | ' | ' |
Total current liabilities | 20,287 | 15,913 | ' | 22,198 | ' | ' |
Total liabilities | 24,575 | 20,208 | ' | 25,620 | ' | ' |
Commitments and contingencies (Note 13) | ' | ' | ' | ' | ' | ' |
Shareholders' deficit: | ' | ' | ' | ' | ' | ' |
Ordinary Shares, $0.0125 par value; 26,804,639 shares authorized; 4,293,639, and 4,403,859 and issued and outstanding at December 31, 2011 and 2012, respectively | 58 | 55 | ' | 54 | ' | ' |
Additional paid-in capital | 3,515 | 1,010 | ' | 0 | ' | ' |
Accumulated comprehensive income | 2,148 | 1,811 | ' | 1,810 | ' | ' |
Statutory reserve | 740 | 740 | ' | 610 | ' | ' |
Accumulated deficit | -7,586 | -24,399 | ' | -42,550 | ' | ' |
Total shareholders' deficit | -1,125 | -20,783 | ' | -40,076 | -45,099 | -35,132 |
Total liabilities, convertible preferred share and shareholders' deficit | 77,850 | 53,802 | ' | 39,866 | ' | ' |
Series A Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' | ' | ' | ' |
Convertible preferred shares, value | 6,000 | 6,000 | ' | 6,000 | ' | ' |
Series B Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' | ' | ' | ' |
Convertible preferred shares, value | 17,020 | 17,020 | ' | 17,020 | ' | ' |
Series B-1 Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' | ' | ' | ' |
Convertible preferred shares, value | 21,048 | 21,048 | ' | 21,048 | ' | ' |
Series B-2 Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' | ' | ' | ' |
Convertible preferred shares, value | 10,332 | 10,309 | ' | 10,254 | ' | ' |
Montage Technology Group Limited [Member] | ' | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | 5,638 | ' | 7,211 | 7,014 | 5,810 |
Inventories | ' | 5,871 | ' | 3,327 | ' | ' |
Amount due from subsidiaries | ' | 30,993 | ' | 22,480 | ' | ' |
Prepaid expenses and other current assets | ' | 333 | ' | 166 | ' | ' |
Total current assets | ' | 42,835 | ' | 33,184 | ' | ' |
Investments in subsidiaries | ' | 6,799 | ' | 6,149 | ' | ' |
Property and equipment, net | ' | 10 | ' | 19 | ' | ' |
Acquired intangible asset, net | ' | 19 | ' | 94 | ' | ' |
Deferred offering costs | ' | 283 | ' | 0 | ' | ' |
Total assets | ' | 49,946 | ' | 39,446 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | 1,546 | ' | 3,623 | ' | ' |
Amount due to subsidiaries | ' | 14,162 | ' | 17,029 | ' | ' |
Accrued liabilities | ' | 241 | ' | 23 | ' | ' |
Deferred margin, net | ' | 356 | ' | 4,484 | ' | ' |
Income tax payable | ' | 47 | ' | 41 | ' | ' |
Total current liabilities | ' | 16,352 | ' | 25,200 | ' | ' |
Total liabilities | ' | 16,352 | ' | 25,200 | ' | ' |
Commitments and contingencies (Note 13) | ' | ' | ' | ' | ' | ' |
Shareholders' deficit: | ' | ' | ' | ' | ' | ' |
Ordinary Shares, $0.0125 par value; 26,804,639 shares authorized; 4,293,639, and 4,403,859 and issued and outstanding at December 31, 2011 and 2012, respectively | ' | 55 | ' | 54 | ' | ' |
Additional paid-in capital | ' | 1,010 | ' | 0 | ' | ' |
Accumulated comprehensive income | ' | 1,811 | ' | 1,810 | ' | ' |
Statutory reserve | ' | 740 | ' | 610 | ' | ' |
Accumulated deficit | ' | -24,399 | ' | -42,550 | ' | ' |
Total shareholders' deficit | ' | -20,783 | ' | -40,076 | ' | ' |
Total liabilities, convertible preferred share and shareholders' deficit | ' | 49,946 | ' | 39,446 | ' | ' |
Montage Technology Group Limited [Member] | Series A Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' | ' | ' | ' |
Convertible preferred shares, value | ' | 6,000 | ' | 6,000 | ' | ' |
Montage Technology Group Limited [Member] | Series B Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' | ' | ' | ' |
Convertible preferred shares, value | ' | 17,020 | ' | 17,020 | ' | ' |
Montage Technology Group Limited [Member] | Series B-1 Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' | ' | ' | ' |
Convertible preferred shares, value | ' | 21,048 | ' | 21,048 | ' | ' |
Montage Technology Group Limited [Member] | Series B-2 Convertible Preferred Shares [Member] | ' | ' | ' | ' | ' | ' |
Convertible Preferred Share: | ' | ' | ' | ' | ' | ' |
Convertible preferred shares, value | ' | $10,309 | ' | $10,254 | ' | ' |
Additional_Information_Condens3
Additional Information - Condensed Financial Statements of the Company - Condensed Balance Sheets (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Sep. 06, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, except Share data, unless otherwise specified | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Convertible preferred shares, par value | ' | $0.01 | ' | ' |
Ordinary Shares, par value | $0.01 | $0.01 | $0.01 | $0.01 |
Ordinary Shares, authorized | 26,804,639 | ' | 26,804,639 | 26,804,639 |
Ordinary Shares, issued | 4,660,025 | ' | 4,403,859 | 4,293,639 |
Ordinary Shares, outstanding | 4,660,025 | ' | 4,403,859 | 4,293,639 |
Series A Convertible Preferred Shares [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Convertible preferred shares, par value | $0.01 | ' | $0.01 | $0.01 |
Convertible preferred shares, shares authorized | 4,800,000 | ' | 4,800,000 | 4,800,000 |
Convertible preferred shares, shares issued | 4,800,000 | ' | 4,800,000 | 4,800,000 |
Convertible Preferred Shares, Shares Outstanding | 4,800,000 | ' | 4,800,000 | 4,800,000 |
Convertible preferred shares, liquidation value | $6,000 | ' | $6,000 | $6,000 |
Series B Convertible Preferred Shares [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Convertible preferred shares, par value | $0.01 | ' | $0.01 | $0.01 |
Convertible preferred shares, shares authorized | 4,681,416 | ' | 4,681,416 | 4,681,416 |
Convertible preferred shares, shares issued | 4,255,843 | ' | 4,255,843 | 4,255,843 |
Convertible Preferred Shares, Shares Outstanding | 4,255,843 | ' | 4,255,843 | 4,255,843 |
Convertible preferred shares, liquidation value | 13,092 | ' | 13,092 | 13,092 |
Series B-1 Convertible Preferred Shares [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Convertible preferred shares, par value | $0.01 | ' | $0.01 | $0.01 |
Convertible preferred shares, shares authorized | 4,551,709 | ' | 4,551,709 | 4,551,709 |
Convertible preferred shares, shares issued | 4,049,276 | ' | 4,049,276 | 4,049,276 |
Convertible Preferred Shares, Shares Outstanding | 4,049,276 | ' | 4,049,276 | 4,049,276 |
Convertible preferred shares, liquidation value | 16,191 | ' | 16,191 | 16,191 |
Series B-2 Convertible Preferred Shares [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Convertible preferred shares, par value | $0.01 | ' | $0.01 | $0.01 |
Convertible preferred shares, shares authorized | 3,571,514 | ' | 3,571,514 | 3,571,514 |
Convertible preferred shares, shares issued | 2,839,409 | ' | 2,839,409 | 2,839,409 |
Convertible Preferred Shares, Shares Outstanding | 2,839,409 | ' | 2,839,409 | 2,839,409 |
Convertible preferred shares, liquidation value | 7,947 | ' | 7,947 | 7,947 |
Montage Technology Group Limited [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Ordinary Shares, par value | ' | ' | $0.01 | $0.01 |
Ordinary Shares, authorized | ' | ' | 26,804,639 | 26,804,639 |
Ordinary Shares, issued | ' | ' | 4,403,859 | 4,293,639 |
Ordinary Shares, outstanding | ' | ' | 4,403,859 | 4,293,639 |
Montage Technology Group Limited [Member] | Series A Convertible Preferred Shares [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
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 |
Montage Technology Group Limited [Member] | Series B Convertible Preferred Shares [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
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 |
Montage Technology Group Limited [Member] | Series B-1 Convertible Preferred Shares [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
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 |
Montage Technology Group Limited [Member] | Series B-2 Convertible Preferred Shares [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
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 |
Additional_Information_Condens4
Additional Information - Condensed Financial Statements of the Company - Condensed Statements of Operations (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Schedule Of Condensed Statements Of Operations [Line Items] | ' | ' | ' | ' | ' |
Revenue | $75,448 | $54,538 | $78,245 | $50,338 | $29,078 |
Cost of revenue | -27,496 | -21,374 | -31,736 | -22,840 | -21,248 |
Gross profit | 47,952 | 33,164 | 46,509 | 27,498 | 7,830 |
Operating expense: | ' | ' | ' | ' | ' |
Research and development | -19,096 | -12,304 | -17,568 | -13,651 | -11,078 |
Sales, general and administrative | -10,681 | -5,614 | -9,792 | -5,895 | -5,046 |
Total operating expense | -29,777 | -17,918 | -27,360 | -19,546 | -16,124 |
Income (loss) from operations | 18,175 | 15,246 | 19,149 | 7,952 | -8,294 |
Interest income (expense), net | 504 | 75 | 207 | -36 | -44 |
Fair value change in warrant liability | 0 | 0 | 0 | 0 | -37 |
Income (loss) before income taxes | 18,522 | 15,574 | 19,509 | 7,609 | -8,489 |
Provision for Income tax | -1,709 | -980 | -1,228 | -2,637 | -54 |
Net income (loss) | 16,813 | 14,594 | 18,281 | 4,972 | -8,543 |
Montage Technology Group Limited [Member] | ' | ' | ' | ' | ' |
Schedule Of Condensed Statements Of Operations [Line Items] | ' | ' | ' | ' | ' |
Revenue | ' | ' | 40,702 | 5,746 | 5,195 |
Cost of revenue | ' | ' | -9,876 | -1,619 | -2,591 |
Gross profit | ' | ' | 30,826 | 4,127 | 2,604 |
Operating expense: | ' | ' | ' | ' | ' |
Research and development | ' | ' | -13,209 | -356 | -8,903 |
Sales, general and administrative | ' | ' | -980 | -245 | -315 |
Total operating expense | ' | ' | -14,189 | -601 | -9,218 |
Income (loss) from operations | ' | ' | 16,637 | 3,526 | -6,614 |
Interest income (expense), net | ' | ' | 60 | 31 | 10 |
Fair value change in warrant liability | ' | ' | 0 | 0 | -37 |
Equity gain (loss) from subsidiaries | ' | ' | 1,590 | 1,430 | -1,877 |
Income (loss) before income taxes | ' | ' | 18,287 | 4,987 | -8,518 |
Provision for Income tax | ' | ' | -6 | -15 | -25 |
Net income (loss) | ' | ' | $18,281 | $4,972 | ($8,543) |
Additional_Information_Condens5
Additional Information - Condensed Financial Statements of the Company - Condensed Statements of Cash Flows (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Cash flows from operating activities | ' | ' | ' | ' | ' |
Net income (loss) | $16,813 | $14,594 | $18,281 | $4,972 | ($8,543) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | 1,915 | 644 | 1,240 | 583 | 813 |
Share-based compensation | 2,462 | 682 | 989 | 631 | 778 |
Fair value changes in warrant liability | 0 | 0 | 0 | 0 | 37 |
Changes in assets and liabilities: | ' | ' | ' | ' | ' |
Inventories | 957 | -381 | -4,654 | -5,140 | 437 |
Prepaid expenses and other assets | -488 | 7 | -129 | 41 | -823 |
Accounts payable | 1,615 | -2,717 | -3,139 | 4,146 | -396 |
Tax payable | 1,154 | 922 | 1,092 | 3,296 | 76 |
Deferred margin, net | 345 | -4,139 | -3,947 | 4,319 | -1,151 |
Other payables and accruals | 103 | -2,255 | 925 | 2,392 | 1,648 |
Net cash provided by (used in) operating activities | 23,102 | 6,069 | 9,404 | 11,187 | -937 |
Cash flows from investing activities | ' | ' | ' | ' | ' |
Purchases of property and equipment | -1,160 | -1,509 | -2,109 | -648 | -734 |
Purchase of intangible assets | -484 | -950 | -1,926 | -159 | -90 |
Net cash provided by (used in) investing activities | -1,381 | -5,703 | -10,503 | -807 | -824 |
Cash flows from financing activities | ' | ' | ' | ' | ' |
Proceeds from exercise of options | 64 | 12 | 68 | 43 | 5 |
Proceeds from early exercise of options | 11 | 0 | 0 | 18 | 0 |
Proceeds from issuance of Series B-2 convertible preferred shares | 0 | 0 | 0 | 0 | 42 |
Proceeds from exercise of warrant | 0 | 0 | 0 | 0 | 1,545 |
Cash paid for initial public offering cost | -421 | 0 | -143 | 0 | 0 |
Net cash provided by (used in) financing activities | -1,937 | -466 | -553 | -636 | 2,415 |
Effect of exchange rate changes on cash | -183 | -44 | -111 | 281 | 131 |
Net increase (decrease) in cash and cash equivalents | 19,601 | -144 | -1,763 | 10,025 | 785 |
Cash and cash equivalents at beginning of period | 21,580 | 23,343 | 23,343 | 13,318 | 12,533 |
Cash and cash equivalents at end of period | 41,181 | 23,199 | 21,580 | 23,343 | 13,318 |
Montage Technology Group Limited [Member] | ' | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | 18,281 | 4,972 | -8,543 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 84 | 185 | 515 |
Share-based compensation | ' | ' | 928 | 577 | 623 |
Equity in profit of subsidiaries | ' | ' | -1,589 | -1,431 | 1,876 |
Fair value changes in warrant liability | ' | ' | 0 | 0 | 37 |
Changes in assets and liabilities: | ' | ' | ' | ' | ' |
Inventories | ' | ' | -2,544 | -3,327 | 4,336 |
Prepaid expenses and other assets | ' | ' | -281 | 54 | 472 |
Amount due from subsidiaries | ' | ' | -8,513 | -14,742 | -415 |
Accounts payable | ' | ' | -2,077 | 3,623 | -2,805 |
Amount due to subsidiaries | ' | ' | -2,867 | 5,945 | 3,819 |
Tax payable | ' | ' | 6 | 16 | 25 |
Deferred margin, net | ' | ' | -4,128 | 4,484 | 0 |
Other payables and accruals | ' | ' | 228 | -52 | -222 |
Net cash provided by (used in) operating activities | ' | ' | -2,472 | 304 | -282 |
Cash flows from investing activities | ' | ' | ' | ' | ' |
Purchases of property and equipment | ' | ' | 0 | -9 | -16 |
Proceeds from disposal of a subsidiary | ' | ' | 1,000 | 0 | 0 |
Purchase of intangible assets | ' | ' | 0 | -159 | -90 |
Prepayment for acquisition | ' | ' | -26 | 0 | 0 |
Net cash provided by (used in) investing activities | ' | ' | 974 | -168 | -106 |
Cash flows from financing activities | ' | ' | ' | ' | ' |
Proceeds from exercise of options | ' | ' | 68 | 43 | 5 |
Proceeds from early exercise of options | ' | ' | 0 | 18 | 0 |
Proceeds from issuance of Series B-2 convertible preferred shares | ' | ' | 0 | 0 | 42 |
Proceeds from exercise of warrant | ' | ' | 0 | 0 | 1,545 |
Cash paid for initial public offering cost | ' | ' | -143 | 0 | 0 |
Net cash provided by (used in) financing activities | ' | ' | -75 | 61 | 1,592 |
Effect of exchange rate changes on cash | ' | ' | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | ' | ' | -1,573 | 197 | 1,204 |
Cash and cash equivalents at beginning of period | ' | 7,211 | 7,211 | 7,014 | 5,810 |
Cash and cash equivalents at end of period | ' | ' | $5,638 | $7,211 | $7,014 |