Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Oct. 25, 2013 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CALIX, INC | |
Entity Central Index Key | 1406666 | |
Document Type | 10-Q | |
Document Period End Date | 28-Sep-13 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,778,201 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $79,124 | $46,995 |
Restricted cash | 972 | 0 |
Accounts receivable, net | 54,421 | 59,519 |
Inventory | 39,376 | 43,282 |
Deferred cost of revenue | 26,826 | 21,077 |
Prepaid expenses and other current assets | 6,656 | 5,677 |
Total current assets | 207,375 | 176,550 |
Property and equipment, net | 18,379 | 21,083 |
Goodwill | 116,175 | 116,175 |
Intangible assets, net | 48,380 | 62,301 |
Other assets | 1,827 | 1,788 |
Total assets | 392,136 | 377,897 |
Current liabilities: | ||
Accounts payable | 18,073 | 16,804 |
Accrued liabilities | 35,034 | 36,176 |
Deferred revenue | 45,202 | 39,315 |
Total current liabilities | 98,309 | 92,295 |
Long-term portion of deferred revenue | 18,197 | 15,782 |
Other long-term liabilities | 1,321 | 745 |
Total liabilities | 117,827 | 108,822 |
Commitments and contingencies (See Note 5) | ||
Stockholders' equity: | ||
Preferred stock, $0.025 par value; 5,000,000 shares authorized; no shares issued and outstanding as of September 28, 2013 and December 31, 2012 | 0 | 0 |
Common stock, $0.025 par value; 100,000,000 shares authorized; 49,773,485 shares and 48,898,924 shares issued and outstanding as of September 28, 2013 and December 31, 2012, respectively | 1,244 | 1,222 |
Additional paid-in capital | 776,209 | 760,232 |
Accumulated other comprehensive income | 179 | 132 |
Accumulated deficit | -503,323 | -492,511 |
Total stockholders' equity | 274,309 | 269,075 |
Total liabilities and stockholders' equity | $392,136 | $377,897 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.03 | $0.03 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.03 | $0.03 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 49,773,485 | 48,898,924 |
Common stock, shares outstanding | 49,773,485 | 48,898,924 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||||
Income Statement [Abstract] | ||||||||
Revenue | $103,628 | $81,301 | $288,615 | $238,794 | ||||
Cost of revenue: | ||||||||
Products and services (1) | 54,132 | [1] | 45,707 | [1] | 151,323 | [1] | 132,797 | [1] |
Amortization of intangible assets | 2,089 | 2,088 | 6,265 | 5,451 | ||||
Total cost of revenue | 56,221 | 47,795 | 157,588 | 138,248 | ||||
Gross profit | 47,407 | 33,506 | 131,027 | 100,546 | ||||
Operating expenses: | ||||||||
Research and development (1) | 19,777 | [1] | 16,165 | [1] | 59,983 | [1] | 49,604 | [1] |
Sales and marketing (1) | 16,612 | [1] | 15,093 | [1] | 49,492 | [1] | 44,880 | [1] |
General and administrative (1) | 8,478 | [1] | 6,773 | [1] | 24,293 | [1] | 19,682 | [1] |
Amortization of intangible assets | 2,552 | 2,552 | 7,656 | 7,656 | ||||
Total operating expenses | 47,419 | 40,583 | 141,424 | 121,822 | ||||
Loss from operations | -12 | -7,077 | -10,397 | -21,276 | ||||
Interest and other income (expense), net: | ||||||||
Interest income | 2 | 3 | 4 | 14 | ||||
Interest expense | -24 | -41 | -94 | -140 | ||||
Other income (expense), net | 4 | 19 | -318 | -70 | ||||
Loss before provision for (benefit from) income taxes | -30 | -7,096 | -10,805 | -21,472 | ||||
Provision for (benefit from) income taxes | -574 | 44 | 7 | 280 | ||||
Net income (loss) | 544 | -7,140 | -10,812 | -21,752 | ||||
Net income (loss) per common share: | ||||||||
Basic (Per Share) | $0.01 | ($0.15) | ($0.22) | ($0.45) | ||||
Diluted (Per Share) | $0.01 | ($0.15) | ($0.22) | ($0.45) | ||||
Weighted-average number of shares used to compute net income (loss) per common share: | ||||||||
Basic (Share) | 49,694 | 48,353 | 49,255 | 48,059 | ||||
Diluted (Share) | 51,142 | 48,353 | 49,255 | 48,059 | ||||
Other comprehensive income, net of tax: | ||||||||
Foreign currency translation adjustments, net | 35 | 24 | 47 | 35 | ||||
Total other comprehensive income, net of tax | 35 | 24 | 47 | 35 | ||||
Comprehensive income (loss) | $579 | ($7,116) | ($10,765) | ($21,717) | ||||
[1] | Includes stock-based compensation as follows: Three Months Ended SeptemberB 28, 2013 and SeptemberB 29, 2012, Nine Months Ended SeptemberB 28, 2013 and SeptemberB 29, 2012: Cost of revenue - $362, $345, $1,090, $1,089; Research and development - $1,179, $1,017, $3,665, $3,129; Sales and marketing - $1,395, $1,263, $4,138, $3,840; General administrative - $2,035, $1,682, $6,072, $4,903; Total - $4,971, $4,307, $14,965, $12,961. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Stock-based compensation | $4,971 | $4,307 | $14,965 | $12,961 |
Cost of revenue [Member] | ||||
Stock-based compensation | 362 | 345 | 1,090 | 1,089 |
Research and development [Member] | ||||
Stock-based compensation | 1,179 | 1,017 | 3,665 | 3,129 |
Sales and marketing [Member] | ||||
Stock-based compensation | 1,395 | 1,263 | 4,138 | 3,840 |
General and administrative [Member] | ||||
Stock-based compensation | $2,035 | $1,682 | $6,072 | $4,903 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Operating activities: | ||
Net loss | ($10,812) | ($21,752) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 7,767 | 6,351 |
Loss on retirement of property and equipment | 564 | 262 |
Amortization of intangible assets | 13,921 | 13,107 |
Stock-based compensation | 14,965 | 12,961 |
Changes in operating assets and liabilities: | ||
Restricted cash | -972 | 754 |
Accounts receivable, net | 5,098 | -9,359 |
Inventory | 3,906 | 14,855 |
Deferred cost of revenue | -5,749 | -9,063 |
Prepaid expenses and other assets | -466 | 491 |
Accounts payable | 1,269 | 2,186 |
Accrued liabilities | -1,224 | -2,098 |
Deferred revenue | 8,302 | 16,755 |
Other long-term liabilities | 238 | -633 |
Net cash provided by operating activities | 36,807 | 24,817 |
Investing activities: | ||
Purchase of property and equipment | -5,475 | -7,879 |
Net cash used in investing activities | -5,475 | -7,879 |
Financing activities: | ||
Proceeds from exercise of stock options | 671 | 158 |
Proceeds from employee stock purchase plan | 2,464 | 2,222 |
Taxes withheld upon vesting of restricted stock units and restricted stock awards | -2,102 | -880 |
Payments for debt issuance costs | -301 | 0 |
Net cash provided by financing activities | 732 | 1,500 |
Effect of exchange rate changes on cash and cash equivalents | 65 | 46 |
Net increase in cash and cash equivalents | 32,129 | 18,484 |
Cash and cash equivalents at beginning of period | 46,995 | 38,938 |
Cash and cash equivalents at end of period | 79,124 | 57,422 |
Property and equipment acquired using credits from Ericsson Inc. | $125 | $0 |
Company_and_Basis_of_Presentat
Company and Basis of Presentation (Notes) | 9 Months Ended |
Sep. 28, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company and Basis of Presentation | 1. Company and Basis of Presentation |
Company | |
Calix, Inc. (together with its subsidiaries, “Calix,” the “Company,” “our,” “we,” or “us”) was incorporated in August 1999, and is a Delaware corporation. The Company is a leading provider in North America of broadband communications access systems and software for fiber- and copper-based network architectures that enable communications service providers ("CSPs") to transform their networks and connect to their residential and business subscribers. The Company enables CSPs to provide a wide range of revenue-generating services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. The Company focuses solely on CSP access networks, the portion of the network that governs available bandwidth and determines the range and quality of services that can be offered to subscribers. The Company develops and sells carrier-class hardware and software products, which the Company refers to as the Unified Access portfolio that are designed to enhance and transform CSP access networks to meet the changing demands of subscribers rapidly and cost-effectively. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements, including the accounts of Calix, Inc. and its wholly-owned subsidiaries, have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. generally accepted accounting principles (“GAAP”) can be condensed or omitted. In the opinion of management, the financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of the Company’s financial position and operating results. All significant intercompany balances and transactions have been eliminated in consolidation. The Condensed Consolidated Balance Sheet at December 31, 2012 has been derived from the audited financial statements at that date. | |
The results of the Company’s operations can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year or any future periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements for the year ended December 31, 2012, included in the Company’s Form 10-K. | |
The Company's fiscal year begins on January 1st and ends on December 31st. Quarterly periods are based on a 4-4-5 fiscal calendar with the first, second and third fiscal quarters ending on the 13th Saturday of each fiscal period. As a result, the Company had two less days in the first nine months of 2013 than in 2012. The preparation of financial statements in conformity with GAAP for interim financial reporting requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Reclassifications | |
Certain reclassifications have been made to the Condensed Consolidated Statement of Cash Flows for the prior year period presented to conform to the current year presentation. The reclassifications are related to customer shipments that have not met the delivery criteria for revenue recognition. The impact of the reclassifications to the Condensed Consolidated Statement of Cash Flows for the nine months ended September 29, 2012, included a $0.9 million decrease in change in accounts receivable, a $0.4 million increase in change in inventory, a $0.4 million decrease in change in deferred cost of revenue, and a $0.9 million increase in change in deferred revenue. The reclassifications did not impact the Company's operating results or net cash flows from operating, investing, or financing activities for the three and nine months ended September 29, 2012 as previously reported in Form 10-Q for the quarterly period ended September 29, 2012. |
Significant_Accounting_Policie
Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 28, 2013 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies |
The Company’s significant accounting policies are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012. Our significant accounting policies did not materially change during the nine months ended September 28, 2013. | |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force) ("ASU 2013-11"), which provides that a liability related to an unrecognized tax benefit would be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations in which 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 jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with deferred tax assets. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. ASU 2013-11 will be effective for the Company beginning in the first quarter of fiscal 2014. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |
In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"), to improve the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety from accumulated other comprehensive income to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 was effective for the Company in its first quarter of fiscal 2013 and was applied prospectively. Other than requiring additional disclosures, adoption of this guidance did not have an impact on the financial statements of the Company. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets (Notes) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets | ||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
Goodwill was recorded as a result of the Company's acquisitions of Occam Networks, Inc. (“Occam”) in February 2011 and Optical Solutions, Inc. ("OSI") in February 2006. This goodwill is not deductible for tax purposes, and there have been no adjustments to goodwill since the acquisition dates. | |||||||||||||||||||||||||
Goodwill is not amortized but instead is subject to an annual impairment test or more frequently if events or changes in circumstances indicate that it may be impaired. In the Accounting Standards Update No. 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment ("ASU 2011-08"), the FASB simplified testing goodwill for impairment, allowing an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If an entity determines as a result of the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative test is required. Otherwise, no further testing is required. | |||||||||||||||||||||||||
The Company evaluates goodwill on an annual basis as of the end of the second quarter of each year. Management has determined that the Company operates as a single reporting unit and, therefore, evaluates goodwill impairment at the enterprise level. Management assessed qualitative factors to determine whether it was more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the Company was less than its carrying amount, including goodwill, as of June 29, 2013. In assessing the qualitative factors, management considered the impact of these key factors: macro-economic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. Management concluded that the fair value of the Company was more likely than not greater than its carrying amount as of June 29, 2013. As such, it was not necessary to perform the two-step goodwill impairment test at the time. | |||||||||||||||||||||||||
At the end of the third quarter of 2013, the Company reviewed events and changes to its business subsequent to the impairment test performed in the second quarter of 2013 and concluded that there were no indicators of impairment to the carrying value of its goodwill during the three months ended September 28, 2013. As of September 28, 2013, there was no impairment to the carrying value of the Company's goodwill. | |||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||
Intangible assets are carried at cost, less accumulated amortization. The details of intangible assets as of September 28, 2013 and December 31, 2012 are disclosed in the following table (in thousands): | |||||||||||||||||||||||||
28-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Core developed technology | $ | 68,964 | $ | (45,253 | ) | $ | 23,711 | $ | 68,964 | $ | (38,986 | ) | $ | 29,978 | |||||||||||
Customer relationships | 54,740 | (30,071 | ) | 24,669 | 54,740 | (22,417 | ) | 32,323 | |||||||||||||||||
Total intangible assets, excluding goodwill | $ | 123,704 | $ | (75,324 | ) | $ | 48,380 | $ | 123,704 | $ | (61,403 | ) | $ | 62,301 | |||||||||||
Amortization expense was $4.6 million and $13.9 million for the three and nine months ended September 28, 2013, respectively, and $4.6 million and $13.1 million for the three and nine months ended September 29, 2012, respectively. | |||||||||||||||||||||||||
Expected future amortization expense for the fiscal years indicated is as follows (in thousands): | |||||||||||||||||||||||||
Period | Expected | ||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||
Remainder of 2013 | $ | 4,640 | |||||||||||||||||||||||
2014 | 18,561 | ||||||||||||||||||||||||
2015 | 18,561 | ||||||||||||||||||||||||
2016 | 5,805 | ||||||||||||||||||||||||
2017 | 813 | ||||||||||||||||||||||||
Total | $ | 48,380 | |||||||||||||||||||||||
Balance_Sheet_Details_Notes
Balance Sheet Details (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||
Balance Sheet Details | 4. Balance Sheet Details | ||||||||||||||||
Cash and cash equivalents consisted of the following (in thousands): | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cash | $ | 59,284 | $ | 27,157 | |||||||||||||
Money market funds | 19,840 | 19,838 | |||||||||||||||
Total cash and cash equivalents | $ | 79,124 | $ | 46,995 | |||||||||||||
Accounts receivable, net consisted of the following (in thousands): | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable | $ | 55,466 | $ | 61,680 | |||||||||||||
Allowance for doubtful accounts | (427 | ) | (421 | ) | |||||||||||||
Product return reserve | (618 | ) | (1,740 | ) | |||||||||||||
Accounts receivable, net | $ | 54,421 | $ | 59,519 | |||||||||||||
Inventory consisted of the following (in thousands): | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Raw materials | $ | 6,929 | $ | 9,377 | |||||||||||||
Finished goods | 32,447 | 33,905 | |||||||||||||||
Total inventory | $ | 39,376 | $ | 43,282 | |||||||||||||
Property and equipment, net consisted of the following (in thousands): | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Computer equipment and software | $ | 28,820 | $ | 31,582 | |||||||||||||
Test equipment | 38,892 | 37,595 | |||||||||||||||
Furniture and fixtures | 1,559 | 1,470 | |||||||||||||||
Leasehold improvements | 6,948 | 6,763 | |||||||||||||||
Total | 76,219 | 77,410 | |||||||||||||||
Accumulated depreciation and amortization | (57,840 | ) | (56,327 | ) | |||||||||||||
Property and equipment, net | $ | 18,379 | $ | 21,083 | |||||||||||||
Accrued liabilities consisted of the following (in thousands): | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accrued warranty | $ | 11,360 | $ | 11,762 | |||||||||||||
Accrued compensation and related benefits | 13,216 | 12,906 | |||||||||||||||
Accrued professional and consulting fees | 1,971 | 1,740 | |||||||||||||||
Accrued excess and obsolete inventory at contract manufacturers | 941 | 1,357 | |||||||||||||||
Accrued customer rebates | 638 | 1,565 | |||||||||||||||
Accrued business travel expenses | 886 | 593 | |||||||||||||||
Sales and use tax payable | 812 | 929 | |||||||||||||||
Income taxes payable | 532 | 627 | |||||||||||||||
Accrued other | 4,678 | 4,697 | |||||||||||||||
Total accrued liabilities | $ | 35,034 | $ | 36,176 | |||||||||||||
Deferred cost of revenue consisted entirely of products and services. Deferred revenue consisted of the following (in thousands): | |||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Product and services - current | $ | 42,453 | $ | 36,715 | |||||||||||||
Extended warranty - current | 2,749 | 2,600 | |||||||||||||||
Extended warranty - non-current | 18,094 | 15,711 | |||||||||||||||
Product and services - non-current | 103 | 71 | |||||||||||||||
Total deferred revenue | $ | 63,399 | $ | 55,097 | |||||||||||||
The following table provides the changes in accumulated other comprehensive income by component for the periods indicated (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
28-Sep-13 | 29-Sep-12 | ||||||||||||||||
Foreign Currency Translation Adjustments | Total | Foreign Currency Translation Adjustments | Total | ||||||||||||||
Balance at beginning of period | $ | 144 | $ | 144 | $ | 109 | $ | 109 | |||||||||
Other comprehensive income | 35 | 35 | 24 | 24 | |||||||||||||
Balance at end of period | $ | 179 | $ | 179 | $ | 133 | $ | 133 | |||||||||
Nine Months Ended | |||||||||||||||||
28-Sep-13 | 29-Sep-12 | ||||||||||||||||
Foreign Currency Translation Adjustments | Total | Foreign Currency Translation Adjustments | Total | ||||||||||||||
Balance at beginning of period | $ | 132 | $ | 132 | $ | 98 | $ | 98 | |||||||||
Other comprehensive income | 47 | 47 | 35 | 35 | |||||||||||||
Balance at end of period | $ | 179 | $ | 179 | $ | 133 | $ | 133 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
Commitments and Contingencies | 5. Commitments and Contingencies | ||||||||||||||||
Commitments | |||||||||||||||||
The Company’s principal commitments consist of obligations under operating leases for office space and non-cancelable outstanding purchase obligations. These commitments as of December 31, 2012 are disclosed in our Annual Report on Form 10-K, and have not changed materially during the nine months ended September 28, 2013 except for the following agreement entered into during 2013. | |||||||||||||||||
On January 28, 2013, the Company entered into an amendment to its lease agreement (the "Amendment") for its primary office space in Petaluma, California, to extend the lease term from February 2014 to February 2019 under a new base rent schedule effective February 1, 2013. The total minimum future payment commitment under this Amendment is $5.6 million. In connection with this Amendment, the Company received a lease incentive consisting of $0.4 million that can be used for leasehold improvements or be applied as credits to rent payments. The Company has capitalized the full amount of the lease incentive and this incentive is being amortized through rent expense over the extended lease term. As of September 28, 2013, the unamortized lease incentive related to this Amendment was $0.4 million, of which $0.1 million and $0.3 million were included in "Accrued liabilities" and "Other long-term liabilities", respectively, in the Condensed Consolidated Balance Sheet as of September 28, 2013. | |||||||||||||||||
Accrued Warranty | |||||||||||||||||
The Company provides a warranty for its hardware products. Hardware generally has a one to five-year warranty from the date of shipment. The Company accrues for potential warranty claims based on the Company’s historical claims experience. The adequacy of the accrual is reviewed on a periodic basis and adjusted, if necessary, based on additional information as it becomes available. | |||||||||||||||||
Changes in the Company’s warranty reserve were as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance at beginning of period | $ | 12,323 | $ | 11,277 | $ | 11,762 | $ | 12,104 | |||||||||
Warranty charged to cost of revenue | 992 | 1,416 | 3,774 | 3,436 | |||||||||||||
Utilization of warranty | (1,955 | ) | (996 | ) | (4,176 | ) | (3,843 | ) | |||||||||
Balance at end of period | $ | 11,360 | $ | 11,697 | $ | 11,360 | $ | 11,697 | |||||||||
Litigation | |||||||||||||||||
From time to time, the Company is involved in various legal proceedings arising from the normal course of business activities. | |||||||||||||||||
On September 16, 2010, the Company, two direct, wholly-owned subsidiaries of the Company, and Occam entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”). In response to the announcement of the Merger Agreement on October 6, 2010, a purported class action complaint was filed by stockholders of Occam in the Delaware Court of Chancery: Steinhardt v. Howard-Anderson, et al. (Case No. 5878-VCL). On November 24, 2010, these stockholders filed an amended complaint (the “amended Steinhardt complaint”). The amended Steinhardt complaint named Occam (which has since been merged into Calix) and the members of the Occam board of directors as defendants. The amended Steinhardt complaint did not name Calix as a defendant. | |||||||||||||||||
The amended Steinhardt complaint sought injunctive relief rescinding the merger transaction and an award of damages in an unspecified amount, as well as plaintiffs' costs, attorney's fees, and other relief. | |||||||||||||||||
The merger transaction was completed on February 22, 2011. On January 6, 2012, the Delaware court ruled on a motion for sanctions brought by the defendants against certain of the lead plaintiffs. The Delaware court found that lead plaintiffs Michael Steinhardt, Steinhardt Overseas Management, L.P., and Ilex Partners, L.L.C., collectively the “Steinhardt Plaintiffs,” had engaged in improper trading of Calix shares, and dismissed the Steinhardt Plaintiffs from the case with prejudice. The court further held that the Steinhardt Plaintiffs are: (i) barred from receiving any recovery from the litigation, (ii) required to self-report to the SEC, (iii) directed to disclose their improper trading in any future application to serve as lead plaintiff, and (iv) ordered to disgorge trading profits of $0.5 million, to be distributed to the remaining members of the class of former Occam stockholders. The Delaware court also granted the motion of the remaining lead plaintiffs, Herbert Chen and Derek Sheeler, for class certification, and certified Messrs. Chen and Sheeler as class representatives. The certified class is a non-opt-out class consisting of all owners of Occam common stock whose shares were converted to shares of Calix on the date of the merger transaction, with the exception of the defendants in the Delaware action and their affiliates. Chen and Sheeler, on behalf of the class of similarly situated former Occam stockholders, continue to seek an award of damages in an unspecified amount. | |||||||||||||||||
Fact discovery in the case closed on April 30, 2013. On June 11, 2013, the plaintiffs filed their Second Amended Class Action Complaint for Breach of Fiduciary Duty (“Second Amended Complaint”). The Second Amended Complaint adds Occam's former CFO as a defendant, and alleges that each of the defendants breached their fiduciary duties by failing to attempt to obtain the best purchase price for Occam and failing to disclose certain allegedly material facts about the merger transaction in the preliminary proxy statement and prospectus included in the Registration Statement on Form S-4 filed with the SEC on November 2, 2010. | |||||||||||||||||
On July 17, 2013, attorneys representing all of the defendants named in the Second Amended Complaint filed Defendants' Opening Brief in Support of Their Motion for Summary Judgment, arguing that all defendants are entitled to summary judgment on all counts of the Second Amended Complaint. Plaintiffs' answering brief to the motion for summary judgment was filed on September 3, 2013, and defendants' reply brief was filed on October 4, 2013. A hearing on the motion for summary judgment is scheduled for December 6, 2013. | |||||||||||||||||
The Company believes that the allegations in the Second Amended Complaint are without merit and intends to continue to vigorously contest the action. However, there can be no assurance that the Company will be successful in defending this ongoing action. In addition, the Company has obligations, under certain circumstances, to hold harmless and indemnify each of the former Occam directors and officers against judgments, fines, settlements and expenses related to claims against such directors and otherwise to the fullest extent permitted under Delaware law and Occam's bylaws and certificate of incorporation. Such obligations may apply to this lawsuit. | |||||||||||||||||
The Company is not currently a party to any other legal proceedings that, if determined adversely to the Company, would individually or in the aggregate have a material adverse effect on the Company's business, operating results or financial condition. |
Fair_Value_Measurements_Notes
Fair Value Measurements (Notes) | 9 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Fair Value Measurements | 6. Fair Value Measurements | ||||||||
In accordance with Accounting Standard Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures, (“ASC Topic 820”), the Company measures its cash equivalents at fair value on a recurring basis. ASC Topic 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||
Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||
Level 2 – Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets. | |||||||||
Level 3 – Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The fair value hierarchy also requires the Company to maximize the use of observable inputs, when available, and to minimize the use of unobservable inputs when determining inputs and determining fair value. | |||||||||
The following table sets forth the Company's financial assets measured at fair value on a recurring basis as of September 28, 2013 and December 31, 2012, based on the three-tier fair value hierarchy (in thousands): | |||||||||
As of September 28, 2013 | Level 1 | Total | |||||||
Money market funds | $ | 19,840 | $ | 19,840 | |||||
Total | $ | 19,840 | $ | 19,840 | |||||
As of December 31, 2012 | Level 1 | Total | |||||||
Money market funds | $ | 19,838 | $ | 19,838 | |||||
Total | $ | 19,838 | $ | 19,838 | |||||
The Company's money market funds consisted of highly liquid investments with original maturities of three months or less and are classified as cash equivalents. The carrying amounts of our money market funds approximate their fair values due to their nature, duration and short maturities. The fair values of money market funds were derived from quoted market prices as active markets for these instruments exist. The Company has no level 2 or level 3 financial assets. |
Net_Income_Loss_per_Share_Note
Net Income (Loss) per Share (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Net Income (Loss) per Share | 7. Net Income (Loss) per Share | ||||||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | 544 | $ | (7,140 | ) | $ | (10,812 | ) | $ | (21,752 | ) | ||||||
Denominator: | |||||||||||||||||
Weighted-average shares used to compute basic net income (loss) per share | 49,694 | 48,353 | 49,255 | 48,059 | |||||||||||||
Effect of dilutive common stock equivalents | 1,448 | — | — | — | |||||||||||||
Weighted-average shares used to compute diluted net income (loss) per share | 51,142 | 48,353 | 49,255 | 48,059 | |||||||||||||
Net income (loss) per common share, Basic | $ | 0.01 | $ | (0.15 | ) | $ | (0.22 | ) | $ | (0.45 | ) | ||||||
Net income (loss) per common share, Diluted | $ | 0.01 | $ | (0.15 | ) | $ | (0.22 | ) | $ | (0.45 | ) | ||||||
Potentially dilutive shares, weighted average | 2,173 | 4,462 | 5,364 | 4,364 | |||||||||||||
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted net income per share is calculated by using the weighted-average number of common shares outstanding during the period, increased to include the number of additional shares of common stock that would have been outstanding if the shares of common stock underlying our outstanding dilutive stock options, restricted stock units, performance restricted stock units and purchase rights under the ESPP had been issued. The dilutive effect of these common stock equivalents is reflected in diluted earnings per share by application of the treasury stock method. Diluted net loss per common share is the same as basic net loss per common share, since the effects of potentially dilutive securities are antidilutive. | |||||||||||||||||
Potentially dilutive shares are excluded from the computation of diluted net income (loss) per share when their effect is antidilutive. These antidilutive shares were primarily from stock options, restricted stock units and performance restricted stock awards. |
Stockholders_Equity_Notes
Stockholders' Equity (Notes) | 9 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | |||||||||
Stockholders' Equity | 8. Stockholders’ Equity | ||||||||
Equity Incentive Plans | |||||||||
The Company maintains three equity incentive plans, the 2000 Stock Plan, the 2002 Stock Plan and the 2010 Equity Incentive Award Plan (together, the “Plans”). These plans were approved by the stockholders and are described in the Company’s Form 10-K filed with the SEC on February 22, 2013. The Company also maintains a Long Term Incentive Program, under the 2010 Equity Incentive Award Plan. Under the Long Term Incentive Program, certain key employees of the Company are eligible for equity awards based on the Company’s stock price performance. To date, awards granted under the Plans consist of stock options, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), and performance restricted stock units ("PRSUs"). | |||||||||
Stock Options | |||||||||
During the three months ended September 28, 2013, the Company granted 33,000 stock options at a weighted-average grant date fair value of $6.56 per share. During the nine months ended September 28, 2013, the Company granted 573,000 stock options at a weighted-average grant date fair value of $4.89 per share. During the three months ended September 28, 2013, 62,033 stock options were exercised at a weighted-average exercise price of $6.17 per share. During the nine months ended September 28, 2013, 150,675 stock options were exercised at a weighted-average exercise price of $4.45 per share. As of September 28, 2013, unrecognized stock-based compensation expense of $7.3 million related to stock options, net of estimated forfeitures, was expected to be recognized over a weighted-average period of 2.4 years. | |||||||||
Restricted Stock Units | |||||||||
During the three months ended September 28, 2013, 86,000 RSUs were granted with a weighted-average grant date fair value of $11.98 per share. During the nine months ended September 28, 2013, 614,186 RSUs were granted with a weighted-average grant date fair value of $8.85 per share. During the three and nine months ended September 28, 2013, 209,031 and 358,725 RSUs vested, respectively, and were converted to an equivalent number of shares of common stock. As of September 28, 2013, unrecognized stock-based compensation expense of $12.7 million related to RSUs, net of estimated forfeitures, was expected to be recognized over a weighted-average period of 2.2 years. | |||||||||
Performance Restricted Stock Units | |||||||||
In 2012, the Company commenced granting PRSUs to its executives with two-year and three-year performance periods. The performance criterion is based on the relative total shareholder return (“TSR”) of Calix common stock as compared to the TSR of the Company’s peer group. The TSR is calculated by dividing (a) the average closing trading price for the 90-day period ending on the last day of the applicable performance period by (b) the average closing trading price for the 90-day period immediately preceding the first day of the applicable performance period. This TSR is then used to derive the achievement ratio, which is then multiplied by the number of units in the grant to derive the common stock to be issued for each performance period, which may equal from zero percent (0%) to two hundred percent (200%) of the target award. | |||||||||
During the three months ended September 28, 2013, no PRSUs were granted. During the nine months ended September 28, 2013, the Company granted 230,000 PRSUs with a weighted-average grant date fair value of $11.24 per unit. As of September 28, 2013, unrecognized stock-based compensation expense of $2.3 million related to PRSUs, net of estimated forfeitures, was expected to be recognized over a weighted-average period of 1.4 years. | |||||||||
Restricted Stock Awards | |||||||||
During the nine months ended September 28, 2013, no RSAs were granted. As of September 28, 2013, unrecognized stock-based compensation expense of $2.9 million related to RSAs, net of estimated forfeitures, was expected to be recognized over a weighted-average period of 1.7 years. | |||||||||
Employee Stock Purchase Plan | |||||||||
The Company’s Amended and Restated Employee Stock Purchase Plan (“ESPP”) allows employees to purchase shares of the Company’s common stock through payroll deductions of up to 15 percent of their annual compensation subject to certain Internal Revenue Code limitations. In addition, no participant may purchase more than 2,000 shares of common stock in each offering period. | |||||||||
The offering periods under the ESPP are six-month periods commencing on June 1 and December 1 of each year. The price of common stock purchased under the plan is 85 percent of the lower of the fair market value of the common stock on the commencement date and exercise date of each six-month offering period. As of September 28, 2013, there were 2,845,428 shares available for issuance under the ESPP. | |||||||||
There were no shares purchased under the ESPP during the three months ended September 28, 2013. During the nine months ended September 28, 2013, 414,168 shares were purchased under the ESPP. As of September 28, 2013, unrecognized stock-based compensation expense of $0.3 million related to the ESPP was expected to be recognized over a remaining service period of 2 months. | |||||||||
Stock-Based Compensation Expense | |||||||||
In accordance with ASC Topic 718, Compensation - Stock Compensation, ("ASC Topic 718"), stock-based compensation expense associated with stock options, RSUs, PRSUs, RSAs, and purchase rights under the ESPP is measured at the grant date based on the fair value of the award, and is recognized, net of forfeitures, as expense over the remaining requisite service period on a straight-line basis. | |||||||||
The Company values RSUs and RSAs at the closing market price of the Company’s common stock on the date of grant. | |||||||||
The fair value of PRSUs with a market condition is estimated on the date of award, using a Monte Carlo simulation model to estimate the TSR of the Company's stock in relation to the peer group over each performance period. Compensation cost on PRSUs with a market condition is not adjusted for subsequent changes in the Company's stock performance or the level of ultimate vesting. | |||||||||
The Company estimates the fair value of stock options at the grant date using the Black-Scholes option-pricing model. This model requires the use of the following assumptions: | |||||||||
(i) Expected volatility of the Company's common stock - Starting in the fourth quarter of 2012, the Company computes its expected volatility assumption based on a blended volatility (50% historical volatility and 50% implied volatility from traded options on the Company's common stock). The selection of a blended volatility assumption was based upon the Company's assessment that a blended volatility is more representative of the Company's future stock price trend as it weighs the historical volatility with the future implied volatility. Prior to the fourth quarter of 2012, due to the lack of a sufficient history of the Company's stock prices, the Company’s computation of expected volatility was based on the Company’s peer group in the industry in which the Company does business. | |||||||||
(ii) Expected life of the option award - Represents the weighted-average period that the stock options are expected to remain outstanding. The Company’s computation of expected life utilizes the simplified method in accordance with Staff Accounting Bulletin No. 110 ("SAB 110") due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The mid-point between the vesting date and the expiration date is used as the expected term under this method. | |||||||||
(iii) Expected dividend yield - Assumption is based on the Company's history of not paying dividends and no future expectations of dividend payouts. | |||||||||
(iv) Risk-free interest rate - Based on the U.S. Treasury yield curve in effect at the time of grant with maturities approximating the grant’s expected life. | |||||||||
The following table summarizes the weighted-average assumptions used in estimating the grant-date fair value of stock options in the periods indicated: | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 28, | September 29, | September 28, | September 29, | ||||||
2013 | 2012 | 2013 | 2012 | ||||||
Expected volatility | 58% | 55% | 62% | 56% | |||||
Expected life (years) | 6.08 | 6.25 | 6.05 | 6.25 | |||||
Expected dividend yield | — | — | — | — | |||||
Risk-free interest rate | 1.63% | 0.96% | 1.14% | 1.07% | |||||
Modification of Stock Awards | |||||||||
In February 2013, the Company entered into a Transition and Separation Agreement ("Agreement") with Roger Weingarth, the Company's former Executive Vice President and Chief Operating Officer. Under the Agreement, Mr. Weingarth transitioned to the role of advisor to the Chief Executive Officer of the Company effective as of April 1, 2013, and would terminate his employment with the Company on March 31, 2014 ("Termination Date"). Upon his termination, the Agreement provides for, among other things, the acceleration of the vesting of his unvested stock options, RSAs and RSUs held by him as of the Termination Date. | |||||||||
In accordance with ASC Topic 718, total fair value of the accelerated stock awards after the modification is $0.6 million, which is being recognized on a straight-line basis over the remaining service period through the Termination Date. During the three and nine months ended September 28, 2013, $0.1 million and $0.4 million of the total fair value has been recognized in general and administrative expenses. |
Credit_Facility_Notes
Credit Facility (Notes) | 9 Months Ended |
Sep. 28, 2013 | |
Line of Credit Facility [Abstract] | |
Credit Facility | 9. Credit Facility |
The Company had a revolving credit facility ("Prior Credit Facility") of $30.0 million with Silicon Valley Bank based upon a percentage of eligible accounts receivable, which matured on June 30, 2013. After the Prior Credit Facility matured on June 30, 2013, the Company cash collateralized the outstanding letters of credit with Silicon Valley Bank. As of September 28, 2013, the Company had $1.0 million cash restricted for collateralizing the outstanding letters of credit with Silicon Valley Bank. | |
On July 29, 2013, the Company entered into a credit agreement with Bank of America, N.A. The credit agreement is structured such that other financial institutions can at a later time become party to the credit agreement through an amendment via a syndication process (collectively, together with Bank of America, N.A., the "Lenders"). The credit agreement provides for a revolving facility in the aggregate principal amount of up to $50.0 million, which includes a $20.0 million sublimit for the issuance of letters of credit and a $10.0 million sublimit for a swingline facility. Subject to customary conditions, up to $25.0 million of the revolving facility may be converted to a term loan facility at any time prior to the maturity of the revolving facility. The revolving facility matures on July 29, 2016, but may be extended up to two times (each extension for an additional one-year period) upon mutual agreement of the Company and the Lenders. The credit facility is secured by substantially all of our assets, including our intellectual property. Proceeds of the credit facility may be used for general corporate purposes and permitted acquisitions. | |
Loans under the credit facility bear interest at an annual rate equal to the base rate plus 0.75% to 1.25% or LIBOR plus 2.00% to 2.50% based on a leverage ratio of consolidated funded indebtedness to consolidated Adjusted EBITDA (customarily defined). Interest on the revolving facility is due quarterly, and any outstanding interest and principal is due on the maturity date of the revolving facility. The Company is required to repay principal on a term loan in twenty equal quarterly payments from the date the Company enters into a term loan, and all outstanding principal and accrued interest is due on the revolving facility maturity date. Swingline loans must be repaid on the earlier of (i) ten business days after a loan is made and (ii) the revolving facility maturity date. The Company is also required to pay commitment fees of 0.25% per year on any unused portions of this facility. | |
The credit facility includes affirmative and negative covenants applicable to the Company that are typical for credit facilities of this type. Furthermore, the credit agreement requires us to maintain certain financial covenants, including a maximum consolidated leverage ratio, and a minimum consolidated liquidity ratio of cash, cash equivalents and accounts receivable to consolidated funded indebtedness. As of September 28, 2013, the Company was in compliance with these requirements. | |
The credit facility also includes customary events of default, the occurrence and continuation of which would provide the Lenders with the right to demand immediate repayment of any principal and unpaid interest under the credit facility, and to exercise remedies against us and the collateral securing the loans under the credit facility. | |
As of September 28, 2013, the Company had no outstanding letters of credit or borrowings under the credit facility. | |
The Company incurred $0.3 million of debt issuance costs that were directly attributable to the issuance of this credit facility. These costs will be amortized over three years starting from the effective date of the credit facility. As of September 28, 2013, the unamortized debt issuance costs of $0.3 million were included within ‘Other assets’ in our Condensed Consolidated Balance Sheets. |
Income_Taxes_Notes
Income Taxes (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Taxes | 10. Income Taxes | ||||||||||||||||
The following table presents the provision for (benefit from) income taxes from continuing operations and the effective tax rates for the periods indicated (in thousands, except percentages): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Provision for (benefit from) income taxes | $ | (574 | ) | $ | 44 | $ | 7 | $ | 280 | ||||||||
Effective tax rate | 1,904.90 | % | (0.6 | )% | (0.1 | )% | (1.3 | )% | |||||||||
The Company has significant accumulated net operating losses which are subject to a full valuation allowance and, as such, has not received a benefit for these losses. | |||||||||||||||||
The income tax provision for the first nine months of 2013 primarily consisted of federal and state alternative minimum tax and state and foreign income taxes net of the tax benefit recorded for the three months ended September 28, 2013 resulting from the utilization of a portion of the alternative minimum tax (AMT) net operation loss (NOL) acquired from Occam. The remainder of this AMT NOL, which was approximately $4.3 million as of September 28, 2013, will be carried forward by the Company to offset future AMT taxable income. The income tax provision for the first nine months of 2012 primarily consisted of federal alternative minimum tax and state and foreign income taxes. The effective tax rates differ from the U.S. federal statutory rate of 34.0% due primarily to the tax affected change in the valuation allowance against the Company's deferred tax assets. | |||||||||||||||||
ASC Topic 740, Income Taxes, ("ASC Topic 740"), provides for the recognition of deferred tax assets if realization of such assets is more likely than not. The Company has established and continues to maintain a full valuation allowance against its net deferred tax assets, with the exception of certain foreign deferred tax assets, as the Company does not believe that realization of those assets is more likely than not. | |||||||||||||||||
As of September 28, 2013, the Company had unrecognized tax benefits of $13.6 million, of which $0.1 million would affect the Company's effective tax rate if recognized. As of December 31, 2012, the Company had unrecognized tax benefits of $13.2 million, of which $0.1 million would affect the Company's effective tax rate if recognized. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 28, 2013 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force) ("ASU 2013-11"), which provides that a liability related to an unrecognized tax benefit would be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations in which 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 jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with deferred tax assets. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. ASU 2013-11 will be effective for the Company beginning in the first quarter of fiscal 2014. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |
In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"), to improve the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety from accumulated other comprehensive income to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 was effective for the Company in its first quarter of fiscal 2013 and was applied prospectively. Other than requiring additional disclosures, adoption of this guidance did not have an impact on the financial statements of the Company. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of intangible assets | Intangible assets are carried at cost, less accumulated amortization. The details of intangible assets as of September 28, 2013 and December 31, 2012 are disclosed in the following table (in thousands): | ||||||||||||||||||||||||
28-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Core developed technology | $ | 68,964 | $ | (45,253 | ) | $ | 23,711 | $ | 68,964 | $ | (38,986 | ) | $ | 29,978 | |||||||||||
Customer relationships | 54,740 | (30,071 | ) | 24,669 | 54,740 | (22,417 | ) | 32,323 | |||||||||||||||||
Total intangible assets, excluding goodwill | $ | 123,704 | $ | (75,324 | ) | $ | 48,380 | $ | 123,704 | $ | (61,403 | ) | $ | 62,301 | |||||||||||
Expected future amortization | Expected future amortization expense for the fiscal years indicated is as follows (in thousands): | ||||||||||||||||||||||||
Period | Expected | ||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||
Remainder of 2013 | $ | 4,640 | |||||||||||||||||||||||
2014 | 18,561 | ||||||||||||||||||||||||
2015 | 18,561 | ||||||||||||||||||||||||
2016 | 5,805 | ||||||||||||||||||||||||
2017 | 813 | ||||||||||||||||||||||||
Total | $ | 48,380 | |||||||||||||||||||||||
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||
Summary of cash and cash equivalents | Cash and cash equivalents consisted of the following (in thousands): | ||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cash | $ | 59,284 | $ | 27,157 | |||||||||||||
Money market funds | 19,840 | 19,838 | |||||||||||||||
Total cash and cash equivalents | $ | 79,124 | $ | 46,995 | |||||||||||||
Summary of accounts receivable, net | Accounts receivable, net consisted of the following (in thousands): | ||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable | $ | 55,466 | $ | 61,680 | |||||||||||||
Allowance for doubtful accounts | (427 | ) | (421 | ) | |||||||||||||
Product return reserve | (618 | ) | (1,740 | ) | |||||||||||||
Accounts receivable, net | $ | 54,421 | $ | 59,519 | |||||||||||||
Summary of inventory | Inventory consisted of the following (in thousands): | ||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Raw materials | $ | 6,929 | $ | 9,377 | |||||||||||||
Finished goods | 32,447 | 33,905 | |||||||||||||||
Total inventory | $ | 39,376 | $ | 43,282 | |||||||||||||
Summary of property and equipment, net | Property and equipment, net consisted of the following (in thousands): | ||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Computer equipment and software | $ | 28,820 | $ | 31,582 | |||||||||||||
Test equipment | 38,892 | 37,595 | |||||||||||||||
Furniture and fixtures | 1,559 | 1,470 | |||||||||||||||
Leasehold improvements | 6,948 | 6,763 | |||||||||||||||
Total | 76,219 | 77,410 | |||||||||||||||
Accumulated depreciation and amortization | (57,840 | ) | (56,327 | ) | |||||||||||||
Property and equipment, net | $ | 18,379 | $ | 21,083 | |||||||||||||
Summary of accrued liabilities | Accrued liabilities consisted of the following (in thousands): | ||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accrued warranty | $ | 11,360 | $ | 11,762 | |||||||||||||
Accrued compensation and related benefits | 13,216 | 12,906 | |||||||||||||||
Accrued professional and consulting fees | 1,971 | 1,740 | |||||||||||||||
Accrued excess and obsolete inventory at contract manufacturers | 941 | 1,357 | |||||||||||||||
Accrued customer rebates | 638 | 1,565 | |||||||||||||||
Accrued business travel expenses | 886 | 593 | |||||||||||||||
Sales and use tax payable | 812 | 929 | |||||||||||||||
Income taxes payable | 532 | 627 | |||||||||||||||
Accrued other | 4,678 | 4,697 | |||||||||||||||
Total accrued liabilities | $ | 35,034 | $ | 36,176 | |||||||||||||
Summary of deferred revenue | Deferred cost of revenue consisted entirely of products and services. Deferred revenue consisted of the following (in thousands): | ||||||||||||||||
September 28, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Product and services - current | $ | 42,453 | $ | 36,715 | |||||||||||||
Extended warranty - current | 2,749 | 2,600 | |||||||||||||||
Extended warranty - non-current | 18,094 | 15,711 | |||||||||||||||
Product and services - non-current | 103 | 71 | |||||||||||||||
Total deferred revenue | $ | 63,399 | $ | 55,097 | |||||||||||||
Accumulated other comprehensive income details | The following table provides the changes in accumulated other comprehensive income by component for the periods indicated (in thousands): | ||||||||||||||||
Three Months Ended | |||||||||||||||||
28-Sep-13 | 29-Sep-12 | ||||||||||||||||
Foreign Currency Translation Adjustments | Total | Foreign Currency Translation Adjustments | Total | ||||||||||||||
Balance at beginning of period | $ | 144 | $ | 144 | $ | 109 | $ | 109 | |||||||||
Other comprehensive income | 35 | 35 | 24 | 24 | |||||||||||||
Balance at end of period | $ | 179 | $ | 179 | $ | 133 | $ | 133 | |||||||||
Nine Months Ended | |||||||||||||||||
28-Sep-13 | 29-Sep-12 | ||||||||||||||||
Foreign Currency Translation Adjustments | Total | Foreign Currency Translation Adjustments | Total | ||||||||||||||
Balance at beginning of period | $ | 132 | $ | 132 | $ | 98 | $ | 98 | |||||||||
Other comprehensive income | 47 | 47 | 35 | 35 | |||||||||||||
Balance at end of period | $ | 179 | $ | 179 | $ | 133 | $ | 133 | |||||||||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
Product warranty activities [Roll Forward] | Changes in the Company’s warranty reserve were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance at beginning of period | $ | 12,323 | $ | 11,277 | $ | 11,762 | $ | 12,104 | |||||||||
Warranty charged to cost of revenue | 992 | 1,416 | 3,774 | 3,436 | |||||||||||||
Utilization of warranty | (1,955 | ) | (996 | ) | (4,176 | ) | (3,843 | ) | |||||||||
Balance at end of period | $ | 11,360 | $ | 11,697 | $ | 11,360 | $ | 11,697 | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Summary of fair values of financial assets | The following table sets forth the Company's financial assets measured at fair value on a recurring basis as of September 28, 2013 and December 31, 2012, based on the three-tier fair value hierarchy (in thousands): | ||||||||
As of September 28, 2013 | Level 1 | Total | |||||||
Money market funds | $ | 19,840 | $ | 19,840 | |||||
Total | $ | 19,840 | $ | 19,840 | |||||
As of December 31, 2012 | Level 1 | Total | |||||||
Money market funds | $ | 19,838 | $ | 19,838 | |||||
Total | $ | 19,838 | $ | 19,838 | |||||
Net_Income_Loss_per_Share_Tabl
Net Income (Loss) per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Schedule of net income (loss) per share | The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | 544 | $ | (7,140 | ) | $ | (10,812 | ) | $ | (21,752 | ) | ||||||
Denominator: | |||||||||||||||||
Weighted-average shares used to compute basic net income (loss) per share | 49,694 | 48,353 | 49,255 | 48,059 | |||||||||||||
Effect of dilutive common stock equivalents | 1,448 | — | — | — | |||||||||||||
Weighted-average shares used to compute diluted net income (loss) per share | 51,142 | 48,353 | 49,255 | 48,059 | |||||||||||||
Net income (loss) per common share, Basic | $ | 0.01 | $ | (0.15 | ) | $ | (0.22 | ) | $ | (0.45 | ) | ||||||
Net income (loss) per common share, Diluted | $ | 0.01 | $ | (0.15 | ) | $ | (0.22 | ) | $ | (0.45 | ) | ||||||
Potentially dilutive shares, weighted average | 2,173 | 4,462 | 5,364 | 4,364 | |||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | |||||||||
Weighted-average assumptions used to estimate the fair value of stock options | The following table summarizes the weighted-average assumptions used in estimating the grant-date fair value of stock options in the periods indicated: | ||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 28, | September 29, | September 28, | September 29, | ||||||
2013 | 2012 | 2013 | 2012 | ||||||
Expected volatility | 58% | 55% | 62% | 56% | |||||
Expected life (years) | 6.08 | 6.25 | 6.05 | 6.25 | |||||
Expected dividend yield | — | — | — | — | |||||
Risk-free interest rate | 1.63% | 0.96% | 1.14% | 1.07% |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Schedule of income taxes | The following table presents the provision for (benefit from) income taxes from continuing operations and the effective tax rates for the periods indicated (in thousands, except percentages): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Provision for (benefit from) income taxes | $ | (574 | ) | $ | 44 | $ | 7 | $ | 280 | ||||||||
Effective tax rate | 1,904.90 | % | (0.6 | )% | (0.1 | )% | (1.3 | )% |
Company_and_Basis_of_Presentat1
Company and Basis of Presentation - Textual (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2013 |
Accounts Receivable [Member] | |
Prior Period Reclassification Adjustment | ($0.90) |
Inventories [Member] | |
Prior Period Reclassification Adjustment | 0.4 |
Deferred Cost of Revenue [Member] | |
Prior Period Reclassification Adjustment | -0.4 |
Deferred Revenue [Member] | |
Prior Period Reclassification Adjustment | $0.90 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $123,704 | $123,704 |
Accumulated amortization | -75,324 | -61,403 |
Net | 48,380 | 62,301 |
Core developed technologies [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 68,964 | 68,964 |
Accumulated amortization | -45,253 | -38,986 |
Net | 23,711 | 29,978 |
Customer relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 54,740 | 54,740 |
Accumulated amortization | -30,071 | -22,417 |
Net | $24,669 | $32,323 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Expected Future Amortization (Details) (USD $) | Sep. 28, 2013 |
In Thousands, unless otherwise specified | |
Expected future amortization | |
Remainder of 2013 | $4,640 |
2014 | 18,561 |
2015 | 18,561 |
2016 | 5,805 |
2017 | 813 |
Total | $48,380 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Textual (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Accumulated impairment loss, goodwill | $0 | $0 | ||
Amortization expense | $4,600,000 | $4,600,000 | $13,921,000 | $13,107,000 |
Balance_Sheet_Details_Cash_and
Balance Sheet Details - Cash and Cash Equivalents (Details) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 | Sep. 29, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Abstract] | ||||
Cash | $59,284 | $27,157 | ||
Money market funds | 19,840 | 19,838 | ||
Total cash and cash equivalents | $79,124 | $46,995 | $57,422 | $38,938 |
Balance_Sheet_Details_Accounts
Balance Sheet Details - Accounts Receivable (Details) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of accounts receivable, net | ||
Accounts receivable | $55,466 | $61,680 |
Allowance for doubtful accounts | -427 | -421 |
Product return reserve | -618 | -1,740 |
Accounts receivable, net | $54,421 | $59,519 |
Balance_Sheet_Details_Inventor
Balance Sheet Details - Inventory (Details) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of inventory, net | ||
Raw materials | $6,929 | $9,377 |
Finished goods | 32,447 | 33,905 |
Total inventory | $39,376 | $43,282 |
Balance_Sheet_Details_Property
Balance Sheet Details - Property and Equipment, net (Details) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of property and equipment, net | ||
Property and equipment, gross | $76,219 | $77,410 |
Accumulated depreciation and amortization | -57,840 | -56,327 |
Property and equipment, net | 18,379 | 21,083 |
Computer equipment and software [Member] | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 28,820 | 31,582 |
Test equipment [Member] | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 38,892 | 37,595 |
Furniture and fixtures [Member] | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 1,559 | 1,470 |
Leasehold improvements [Member] | ||
Summary of property and equipment, net | ||
Property and equipment, gross | $6,948 | $6,763 |
Balance_Sheet_Details_Accrued_
Balance Sheet Details - Accrued Liabilities (Details) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of accrued liabilities | ||
Accrued warranty | $11,360 | $11,762 |
Accrued compensation and related benefits | 13,216 | 12,906 |
Accrued professional and consulting fees | 1,971 | 1,740 |
Accrued excess and obsolete inventory at contract manufacturers | 941 | 1,357 |
Accrued customer rebates | 638 | 1,565 |
Accrued business travel expenses | 886 | 593 |
Sales and use tax payable | 812 | 929 |
Income taxes payable | 532 | 627 |
Accrued other | 4,678 | 4,697 |
Total accrued liabilities | $35,034 | $36,176 |
Balance_Sheet_Details_Deferred
Balance Sheet Details - Deferred Revenue (Details) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | $45,202 | $39,315 |
Deferred revenue, noncurrent | 18,197 | 15,782 |
Deferred revenue | 63,399 | 55,097 |
Product and Services [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | 42,453 | 36,715 |
Deferred revenue, noncurrent | 103 | 71 |
Extended Warranty [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | 2,749 | 2,600 |
Deferred revenue, noncurrent | $18,094 | $15,711 |
Balance_Sheet_Details_Accumula
Balance Sheet Details - Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 29, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income | ||||||||
Accumulated other comprehensive income, foeign currency translation adjustments | $179 | $133 | $179 | $133 | $144 | $132 | $109 | $98 |
Accumulated other comprehensive income | 179 | 133 | 179 | 133 | 144 | 132 | 109 | 98 |
Foreign currency translation adjustments | 35 | 24 | 47 | 35 | ||||
Other comprehensive income (loss) | $35 | $24 | $47 | $35 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Product Warranty Activities (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Product warranty activities [Roll Forward] | ||||
Balance at beginning of period | $12,323 | $11,277 | $11,762 | $12,104 |
Warranty charged to cost of revenue | 992 | 1,416 | 3,774 | 3,436 |
Utilization of warranty | -1,955 | -996 | -4,176 | -3,843 |
Balance at end of period | $11,360 | $11,697 | $11,360 | $11,697 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Textual (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2010 | Sep. 28, 2013 | Jan. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 |
Subsidiary | Minimum [Member] | Maximum [Member] | Accrued Liabilities [Member] | Other long-term liabilities [Member] | |||
Commitments and Contingencies [Line Items] | |||||||
Minimum future lease payments | $5.60 | ||||||
Incentive from Lessor | 0.4 | ||||||
Unamortized lease incentive | 0.4 | 0.1 | 0.3 | ||||
Warranty period | 1 year | 5 years | |||||
Number of subsidiaries | 2 | ||||||
Trading profits | $0.50 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Measurements (Details) (USD $) | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of fair values of financial assets | ||
Total | $19,840 | $19,838 |
Money Market Funds [Member] | ||
Summary of fair values of financial assets | ||
Money market funds | 19,840 | 19,838 |
Level 1 [Member] | ||
Summary of fair values of financial assets | ||
Total | 19,840 | 19,838 |
Level 1 [Member] | Money Market Funds [Member] | ||
Summary of fair values of financial assets | ||
Money market funds | $19,840 | $19,838 |
Net_Income_Loss_per_Share_Basi
Net Income (Loss) per Share - Basic and Diluted Shares Calculation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Numerator: | ||||
Net income (loss) | $544 | ($7,140) | ($10,812) | ($21,752) |
Denominator: | ||||
Weighted-average shares used to compute basic net income (loss) per share | 49,694 | 48,353 | 49,255 | 48,059 |
Effect of dilutive common stock equivalents | 1,448 | 0 | 0 | 0 |
Weighted-average shares used to compute diluted net income (loss) per share | 51,142 | 48,353 | 49,255 | 48,059 |
Net income (loss) per common share, Basic | $0.01 | ($0.15) | ($0.22) | ($0.45) |
Net income (loss) per common share, Diluted | $0.01 | ($0.15) | ($0.22) | ($0.45) |
Potentially dilutive shares, weighted average | 2,173 | 4,462 | 5,364 | 4,364 |
Stockholders_Equity_Weightedav
Stockholders' Equity - Weighted-average Assumptions Used to Estimate Fair Value of Stock Options (Details) (Stock options [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Stock options [Member] | ||||
Weighted-average assumptions used to estimate fair value of stock options | ||||
Expected volatility | 58.00% | 55.00% | 62.00% | 56.00% |
Expected life (years) | 6 years 1 month | 6 years 3 months | 6 years 20 days | 6 years 3 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk free interest rate | 1.63% | 0.96% | 1.14% | 1.07% |
Stockholders_Equity_Textual_De
Stockholders' Equity - Textual (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 |
Plan | Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Equity Incentive Plans | 3 | 3 |
Stock options granted | 33,000 | 573,000 |
Weighted-average grant date fair value per share, stock options | $6.56 | $4.89 |
Stock options exercised | 62,033 | 150,675 |
Weighted-average exercise price per share, stock options | $6.17 | $4.45 |
Shares issued under the ESPP | 0 | 414,168 |
Weight of historical volatility | 50.00% | |
Weight of implied volatility | 50.00% | |
Fair value of accelerated stock awards | $0.60 | |
Fair value recognized for accelerated stock awards | 0.1 | 0.4 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target performance rate | 0.00% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target performance rate | 200.00% | |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | 7.3 | 7.3 |
Weighted-average amortization period | 2 years 5 months | |
Restricted stock units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | 12.7 | 12.7 |
Weighted-average amortization period | 2 years 2 months | |
Awards granted | 86,000 | 614,186 |
Weighted-average grant date fair value per share | $11.98 | $8.85 |
Awards vested | 209,031 | 358,725 |
Restricted stock awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | 2.9 | 2.9 |
Weighted-average amortization period | 1 year 8 months | |
Awards granted | 0 | |
Employee stock purchase plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | 0.3 | 0.3 |
Weighted-average amortization period | 2 months | |
ESPP, maximum employee payroll deduction percentage | 15.00% | 15.00% |
ESPP, maximum number of shares per employee | 2,000 | |
ESPP, discounted purchase price percentage | 85.00% | |
Shares available for issuance under the ESPP | 2,845,428 | 2,845,428 |
Performance Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $2.30 | $2.30 |
Weighted-average amortization period | 1 year 5 months | |
Awards granted | 0 | 230,000 |
Weighted-average grant date fair value per share | $11.24 | |
Performance Restricted Stock Units [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 2 years | |
Performance Restricted Stock Units [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 3 years |
Credit_Facility_Textual_Detail
Credit Facility - Textual (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
Jul. 29, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | |
extention | |||
Credit Facility [Line Items] | |||
Credit Facility, Initiation Date | 29-Jul-13 | ||
Credit Facility, maximum borrowing capacity | $50,000,000 | ||
Credit Facility, Maturity Date | 29-Jul-16 | ||
Cash collateralized for the outstanding letters of credit | 1,000,000 | ||
Credit Facility, number of one-year period extensions | 2 | ||
Credit Facility, Interest Rate Description | Loans under the credit facility bear interest at an annual rate equal to the base rate plus 0.75% to 1.25% or LIBOR plus 2.00% to 2.50% based on a leverage ratio of consolidated funded indebtedness to consolidated Adjusted EBITDA (customarily defined). | ||
Credit Facility, Frequency of Payment and Payment Terms | Interest on the revolving facility is due quarterly, and any outstanding interest and principal is due on the maturity date of the revolving facility. | ||
Credit Facility, outstanding letters of credit | 0 | ||
Credit Facility, outstanding borrowings | 0 | ||
Credit Facility, commitment fee percentage | 0.25% | ||
Debt Issuance Costs Incurred | 300,000 | 301,000 | 0 |
Unamortized Debt Issuance Costs | 300,000 | ||
Base Rate [Member] | Minimum [Member] | |||
Credit Facility [Line Items] | |||
Credit Facility, Interest Rate Margin | 0.75% | ||
Base Rate [Member] | Maximum [Member] | |||
Credit Facility [Line Items] | |||
Credit Facility, Interest Rate Margin | 1.25% | ||
LIBOR [Member] | Minimum [Member] | |||
Credit Facility [Line Items] | |||
Credit Facility, Interest Rate Margin | 2.00% | ||
LIBOR [Member] | Maximum [Member] | |||
Credit Facility [Line Items] | |||
Credit Facility, Interest Rate Margin | 2.50% | ||
Prior Credit Facility [Member] | |||
Credit Facility [Line Items] | |||
Credit Facility, maximum borrowing capacity | 30,000,000 | ||
Credit Facility, Maturity Date | 30-Jun-13 | ||
Letter of Credit [Member] | |||
Credit Facility [Line Items] | |||
Credit Facility, maximum borrowing capacity | 20,000,000 | ||
Swingline Facility Member [Member] | |||
Credit Facility [Line Items] | |||
Credit Facility, maximum borrowing capacity | 10,000,000 | ||
Term Loan [Member] | |||
Credit Facility [Line Items] | |||
Credit Facility, maximum borrowing capacity | $25,000,000 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | ($574) | $44 | $7 | $280 |
Effective income tax rate | 1904.90% | -0.60% | -0.10% | -1.30% |
Income_Taxes_Textual_Details
Income Taxes - Textual (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||
AMT NOL from Occam | $4.30 | $4.30 | |||
U.S. federal statutory tax rate | 34.00% | 34.00% | 34.00% | 34.00% | |
Unrecognized tax benefits | 13.6 | 13.6 | 13.2 | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | $0.10 | $0.10 | $0.10 |