Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 25, 2015 | Jun. 27, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CALIX, INC | ||
Entity Central Index Key | 1406666 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Trading Symbol | calx | ||
Entity Common Stock, Shares Outstanding | 51,805,177 | ||
Entity Public Float | $340.60 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $48,829 | $82,747 |
Marketable securities | 62,850 | 0 |
Restricted cash | 295 | 295 |
Accounts receivable, net | 30,744 | 43,520 |
Inventory | 46,753 | 51,071 |
Deferred cost of revenue | 5,080 | 21,076 |
Prepaid expenses and other current assets | 12,936 | 5,757 |
Total current assets | 207,487 | 204,466 |
Property and equipment, net | 20,144 | 17,473 |
Goodwill | 116,175 | 116,175 |
Intangible assets, net | 25,179 | 43,740 |
Other assets | 1,236 | 1,745 |
Total assets | 370,221 | 383,599 |
Current liabilities: | ||
Accounts payable | 23,629 | 23,163 |
Accrued liabilities | 39,443 | 32,075 |
Deferred revenue | 12,722 | 34,862 |
Total current liabilities | 75,794 | 90,100 |
Long-term portion of deferred revenue | 19,393 | 18,431 |
Other long-term liabilities | 2,443 | 1,145 |
Total liabilities | 97,630 | 109,676 |
Commitments and contingencies (See Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.025 par value; 5,000,000 shares authorized; no shares issued and outstanding as of December 31, 2014 and December 31, 2013 | 0 | 0 |
Common stock, $0.025 par value; 100,000,000 shares authorized 51,628,257 shares and 50,224,952 shares issued and outstanding as of December 31, 2014 and December 31, 2013, respectively | 1,291 | 1,256 |
Additional paid-in capital | 801,810 | 782,253 |
Accumulated other comprehensive income | 80 | 190 |
Accumulated deficit | -530,590 | -509,776 |
Total stockholders’ equity | 272,591 | 273,923 |
Total liabilities and stockholders’ equity | $370,221 | $383,599 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $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 (in dollars per share) | $0.03 | $0.03 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 51,628,257 | 50,224,952 |
Common stock, shares outstanding | 51,628,257 | 50,224,952 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenue | $401,227 | $382,618 | $330,218 | |||
Cost of revenue: | ||||||
Products and services | 215,085 | [1] | 203,191 | [1] | 185,103 | [1] |
Amortization of intangible assets | 8,353 | 8,353 | 7,539 | |||
Total cost of revenue | 223,438 | 211,544 | 192,642 | |||
Gross profit | 177,789 | 171,074 | 137,576 | |||
Operating expenses: | ||||||
Research and development | 80,311 | [1] | 79,299 | [1] | 66,748 | [1] |
Sales and marketing | 76,283 | [1] | 68,075 | [1] | 62,129 | [1] |
General and administrative | 31,371 | [1] | 31,945 | [1] | 26,114 | [1] |
Amortization of intangible assets | 10,208 | 10,208 | 10,208 | |||
Acquisition-related expenses | 0 | 0 | 1,401 | |||
Total operating expenses | 198,173 | 189,527 | 166,600 | |||
Loss from operations | -20,384 | -18,453 | -29,024 | |||
Interest and other income (expense), net: | ||||||
Interest income | 729 | 7 | 15 | |||
Interest expense | -806 | -167 | -185 | |||
Utilization of inventory credit | 0 | 1,651 | 0 | |||
Gain on bargain purchase | 0 | 0 | 1,029 | |||
Other income (expense), net | 228 | -317 | -3 | |||
Total interest and other income (expense), net | 151 | 1,174 | 856 | |||
Loss before provision for (benefit from) income taxes | -20,233 | -17,279 | -28,168 | |||
Provision for (benefit from) income taxes | 581 | -14 | 158 | |||
Net loss | -20,814 | -17,265 | -28,326 | |||
Net loss per common share: | ||||||
Basic and diluted (in dollars per share) | ($0.41) | ($0.35) | ($0.59) | |||
Weighted-average number of shares used to compute net loss per common share: | ||||||
Basic and diluted (in shares) | 50,808 | 49,419 | 48,180 | |||
Other comprehensive income (loss), net of tax: | ||||||
Unrealized losses on available-for-sale marketable securities adjustment, net | -58 | 0 | 0 | |||
Foreign currency translation adjustments, net | -52 | 58 | 34 | |||
Total other comprehensive income (loss), net of tax | -110 | 58 | 34 | |||
Comprehensive loss | -20,924 | -17,207 | -28,292 | |||
Stock based compensation | 16,017 | 19,921 | 17,437 | |||
Cost of revenue | ||||||
Other comprehensive income (loss), net of tax: | ||||||
Stock based compensation | 1,120 | 1,468 | 1,433 | |||
Research and development | ||||||
Other comprehensive income (loss), net of tax: | ||||||
Stock based compensation | 5,056 | 4,896 | 4,227 | |||
Sales and marketing | ||||||
Other comprehensive income (loss), net of tax: | ||||||
Stock based compensation | 5,601 | 5,577 | 5,160 | |||
General and administrative | ||||||
Other comprehensive income (loss), net of tax: | ||||||
Stock based compensation | $4,240 | $7,980 | $6,617 | |||
[1] | Includes stock-based compensation as follows (in thousands): Years Ended December 31, 2014, 2013, and 2012;Cost of revenue: $1,120, $1,468, $1,433;Research and development: $5,056, $4,896, $4,227;Sales and marketing: $5,601, $5,577, $5,160;General administrative: $4,240, $7,980, $6,617;Total: $16,017, $19,921, $17,437. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2011 | $277,417 | $1,195 | $740,309 | $98 | ($464,185) |
Beginning Balance, shares at Dec. 31, 2011 | 47,825,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 17,437 | 17,437 | |||
Exercise of stock options and warrants, shares | 115,000 | ||||
Exercise of stock options and warrants | 194 | 3 | 191 | ||
issuance of vested restricted stock units, net of taxes withheld, shares | 400,000 | ||||
Issuance of vested restricted stock units, net of taxes withheld | -1,554 | 10 | -1,564 | ||
Stock issued under employee stock purchase plan, shares | 619,000 | ||||
Stock issued under employee stock purchase plan | 4,063 | 16 | 4,047 | ||
Shares withheld for taxes for vested restricted stock awards, shares | -35,000 | ||||
Shares withheld for taxes for vested restricted stock awards | -190 | -1 | -189 | ||
Restricted stock awards forfeited, shares | -25,000 | ||||
Restricted stock awards forfeited | 0 | -1 | 1 | ||
Net loss | -28,326 | -28,326 | |||
Other comprehensive income (loss) | 34 | 34 | |||
Ending Balance at Dec. 31, 2012 | 269,075 | 1,222 | 760,232 | 132 | -492,511 |
Ending Balance, shares at Dec. 31, 2012 | 48,899,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 19,921 | 19,921 | |||
Exercise of stock options and warrants, shares | 160,000 | ||||
Exercise of stock options and warrants | 747 | 4 | 743 | ||
issuance of vested restricted stock units, net of taxes withheld, shares | 529,000 | ||||
Issuance of vested restricted stock units, net of taxes withheld | -3,031 | 14 | -3,045 | ||
Stock issued under employee stock purchase plan, shares | 686,000 | ||||
Stock issued under employee stock purchase plan | 4,828 | 17 | 4,811 | ||
Shares withheld for taxes for vested restricted stock awards, shares | -34,000 | ||||
Shares withheld for taxes for vested restricted stock awards | -410 | -1 | -409 | ||
Restricted stock awards forfeited, shares | -15,000 | ||||
Restricted stock awards forfeited | 0 | 0 | 0 | ||
Net loss | -17,265 | -17,265 | |||
Other comprehensive income (loss) | 58 | 58 | |||
Ending Balance at Dec. 31, 2013 | 273,923 | 1,256 | 782,253 | 190 | -509,776 |
Ending Balance, shares at Dec. 31, 2013 | 50,224,952 | 50,225,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 16,017 | 16,017 | |||
Exercise of stock options and warrants, shares | 224,000 | 224,000 | |||
Exercise of stock options and warrants | 1,668 | 6 | 1,662 | ||
Issuance of vested performance restricted stock units, net of taxes withheld, shares | 99,000 | ||||
Issuance of vested performance restricted stock units, net of taxes withheld | -533 | 2 | -535 | ||
issuance of vested restricted stock units, net of taxes withheld, shares | 449,000 | ||||
Issuance of vested restricted stock units, net of taxes withheld | -1,840 | 11 | -1,851 | ||
Stock issued under employee stock purchase plan, shares | 682,832 | 683,000 | |||
Stock issued under employee stock purchase plan | 4,627 | 17 | 4,610 | ||
Shares withheld for taxes for vested restricted stock awards, shares | -42,000 | ||||
Shares withheld for taxes for vested restricted stock awards | -347 | -1 | -346 | ||
Restricted stock awards forfeited, shares | -10,000 | ||||
Restricted stock awards forfeited | 0 | 0 | 0 | ||
Net loss | -20,814 | -20,814 | |||
Other comprehensive income (loss) | -110 | -110 | |||
Ending Balance at Dec. 31, 2014 | $272,591 | $1,291 | $801,810 | $80 | ($530,590) |
Ending Balance, shares at Dec. 31, 2014 | 51,628,257 | 51,628,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net loss | ($20,814) | ($17,265) | ($28,326) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 9,263 | 10,181 | 8,562 |
Loss on retirement of property and equipment | 50 | 569 | 262 |
Amortization of intangible assets | 18,561 | 18,561 | 17,747 |
Amortization of premiums relating to available-for-sale securities | 574 | 0 | 0 |
Gain on sale of available-for-sale securities | -1 | 0 | 0 |
Stock-based compensation | 16,017 | 19,921 | 17,437 |
Utilization of inventory credit | 0 | -1,651 | 0 |
Gain on bargain purchase | 0 | 0 | -1,029 |
Changes in operating assets and liabilities: | |||
Restricted cash | 0 | -295 | 754 |
Accounts receivable, net | 12,776 | 15,999 | -13,011 |
Inventory | 4,319 | -6,138 | 11,308 |
Deferred cost of revenue | 15,996 | 1 | -13,379 |
Prepaid expenses and other assets | -5,908 | 535 | 47 |
Accounts payable | 467 | 6,359 | 2,554 |
Accrued liabilities | 7,440 | -4,217 | -869 |
Deferred revenue | -21,178 | -1,804 | 26,403 |
Other long-term liabilities | 513 | 62 | -782 |
Net cash provided by operating activities | 38,075 | 40,818 | 27,678 |
Investing activities: | |||
Purchases of property and equipment | -11,961 | -6,987 | -10,179 |
Purchases of marketable securities | -67,698 | 0 | 0 |
Sales of marketable securities | 615 | 0 | 0 |
Maturities of marketable securities | 3,600 | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 | -12,000 |
Net cash used in investing activities | -75,444 | -6,987 | -22,179 |
Financing activities: | |||
Proceeds from exercise of stock options | 1,668 | 747 | 194 |
Proceeds from employee stock purchase plan | 4,627 | 4,828 | 4,063 |
Taxes paid for awards vested under equity incentive plans | -2,720 | -3,441 | -1,744 |
Payments for debt issuance costs | 0 | -316 | 0 |
Net cash provided by financing activities | 3,575 | 1,818 | 2,513 |
Effect of exchange rate changes on cash and cash equivalents | -124 | 103 | 45 |
Net increase (decrease) in cash and cash equivalents | -33,918 | 35,752 | 8,057 |
Cash and cash equivalents at beginning of period | 82,747 | 46,995 | 38,938 |
Cash and cash equivalents at end of period | 48,829 | 82,747 | 46,995 |
Supplemental disclosures of cash flow information | |||
Interest paid | 159 | 57 | 68 |
Income taxes paid | 72 | 96 | 125 |
Non-cash financing and investing activities | |||
Property and equipment acquired using credits from Ericsson Inc. | $0 | $125 | $0 |
Description_of_Business_and_Si
Description of Business and Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies | ||||||||||
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 global provider 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 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. | |||||||||||
The accompanying 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”). In the opinion of management, the consolidated 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. | |||||||||||
Applicable Accounting Guidance | |||||||||||
Any reference in these notes to applicable accounting guidance (“guidance”) is meant to refer to the authoritative U.S. generally accepted accounting principles ("GAAP") as found in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). | |||||||||||
Use of Estimates | |||||||||||
The preparation of financial statements is in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. For the Company, these estimates include, but are not limited to: allowances for doubtful accounts and sales returns, excess and obsolete inventory, allowances for obligations to its contract manufacturers, valuation of stock-based compensation, useful lives assigned to long-lived assets and acquired intangible assets, warranty costs, and contingencies. Actual results could differ from those estimates, and such differences could be material to the Company's financial position and results of operations. | |||||||||||
Business Combination | |||||||||||
The Company accounted for its business acquisitions under ASC Topic 805, “Business Combinations” ("ASC Topic 805"). Under this guidance all of the assets acquired and liabilities assumed are recognized at their fair value as of the acquisition date. The excess of the purchase price over the estimated fair values of the net tangible and intangible assets acquired is recorded as goodwill. If a business combination results in a bargain purchase for the Company, the economic gain resulting from the fair value received being greater than the purchase price is recorded as a gain that is included in other income (expense), net in the Consolidated Statements of Comprehensive Loss. Prior to recognizing the gain, the Company reassesses whether it has correctly identified all of the assets acquired and liabilities assumed and recognizes any additional assets or liabilities that result from that review. The Company also reviews the measurement procedures used in valuing the assets acquired and liabilities assumed. | |||||||||||
While the Company uses its best estimates and assumptions as a part of calculating the fair value at the acquisition date, the Company's estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which maybe up to one year from the acquisition date, the Company may record adjustments retrospectively to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill, or records a corresponding other income or expense in the case of a bargain purchase. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company's Consolidated Statements of Comprehensive Loss. | |||||||||||
Transaction costs associated with the business combinations are expensed as incurred, and are included in acquisition-related expenses within operating expenses in the Consolidated Statements of Comprehensive Loss. | |||||||||||
Revenue Recognition | |||||||||||
The Company derives revenue primarily from the sale of hardware products and related software. Revenue is recognized when all of the following criteria have been met: | |||||||||||
• | Persuasive evidence of an arrangement exists. The Company generally relies upon sales agreements and customer purchase orders as evidence of an arrangement. | ||||||||||
• | Delivery has occurred. The Company uses the shipping terms of the arrangement or evidence of customer acceptance to verify delivery or performance. | ||||||||||
• | Sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment. Payment terms to customers can range from net 30 to net 120 days. | ||||||||||
• | Collectability is reasonably assured. The Company assesses collectability based primarily on creditworthiness of customers and their payment histories. | ||||||||||
Revenue from installation and training services are recognized as the services are completed. Post-sales software support revenue and extended warranty services revenue are deferred and recognized ratably over the period during which the services are to be performed. To date, service revenue has comprised an insignificant portion of the Company's revenue and the Company has not reported service revenue separately from product revenue in its financial statements. In instances where substantive acceptance provisions are specified in the customer agreement, revenue is deferred until all acceptance criteria have been met. From time to time, the Company offers customers sales incentives, which include volume rebates and discounts. These amounts are estimated on a quarterly basis and recorded as a reduction of revenue. | |||||||||||
The Company enters into arrangements with certain of its customers who receive government supported loans and grants from the U.S. Department of Agriculture's Rural Utility Service (“RUS”) to finance capital spending. Under the terms of an RUS equipment contract that includes installation services, the customer does not take possession and control and title does not pass until formal acceptance is obtained from the customer. Under this type of arrangement, the Company does not recognize revenue until it has received formal acceptance from the customer. For RUS arrangements that do not involve installation services, the Company recognizes revenue in accordance with the revenue recognition policy described above. | |||||||||||
The Company's products contain both software and non-software components that function together to deliver the products' essential functionality. When the Company enters into sales arrangements that consist of multiple deliverables of its product and service offerings, the Company allocates the total consideration of the arrangement to each separable deliverable based on its relative selling price. The Company limits the amount allocable to delivered elements to the amount that is not contingent upon the delivery of additional items or meeting specified performance conditions, and recognizes revenue on each deliverable in accordance with its revenue recognition policy. The determination of selling price for each deliverable is based on a selling price hierarchy, which is vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“TPE”) if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE nor TPE is available. VSOE of selling price is based on the price charged when the element is sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices of an element fall within a narrow range when each element is sold separately. The Company has established VSOE for its training and post-sales software support services based on the normal pricing practices of these services when sold separately. TPE of selling price is established by evaluating whether there are similar competitor products or services that are sold in stand-alone sales transaction to similarly situated customers. Generally, the Company's marketing strategy differs from that of its peers and its offerings contain a significant level of customization and differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Additionally, as the Company is unable to reliably determine what similar competitor products' selling prices are on a stand-alone basis, it is not typically able to determine TPE. ESP is established considering multiple factors including, but not limited to geographies market conditions, competitive landscape, internal costs, gross margin objectives, characteristics of targeted customers and pricing practices. The determination of ESP is made through consultation with and formal approval by management, taking into consideration the go-to-market strategy. | |||||||||||
Cost of Revenue | |||||||||||
Cost of revenue consists primarily of finished goods inventory purchased from the Company’s contract manufacturers, payroll and related expenses associated with managing the relationships with contract manufacturers, depreciation of manufacturing test equipment, warranty costs, excess and obsolete inventory costs, shipping charges, and amortization of certain intangible assets. | |||||||||||
Stock-Based Compensation | |||||||||||
In accordance with ASC Topic 718, "Compensation - Stock Compensation" ("ASC Topic 718"), stock-based awards are recorded at fair value as of the grant date and recognized to expense over the employee’s requisite service period (generally the vesting period), which the Company has elected to amortize on a straight-line basis. Stock-based compensation expense is reduced by the Company’s estimated forfeitures on all unvested awards. | |||||||||||
The fair value of stock option and employee stock purchase right is estimated at the grant date using the Black-Scholes option valuation model. The fair value of restricted stock unit and restricted stock award is based on the closing market price of the Company's common stock on the date of grant. The fair value of performance restricted stock unit ("PRSU") with a market condition is estimated on the date of grant, using a Monte Carlo simulation model to estimate the total return ranking 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. | |||||||||||
Warranty | |||||||||||
The Company offers limited warranties for its hardware products for a period of one or five years, depending on the product type. Warranty service revenues are deferred and recognized ratably over the period during which the services are to be performed. The Company recognizes estimated costs related to warranty activities as a component of cost of revenue upon product shipment. The estimates are based on historical product failure rates and historical costs incurred in correcting product failures. The recorded amount is adjusted from time to time for specifically identified warranty exposure. Actual warranty expenses are charged against the Company’s estimated warranty liability when incurred. Factors that affect the Company’s warranty liability include the number of installed units and historical and anticipated rates of warranty claims and cost per claim. | |||||||||||
Research and Development | |||||||||||
Research and development costs include costs of developing new products and processes, as well as design and engineering costs. Such costs are charged to research and development expense as incurred. | |||||||||||
Development costs related to software incorporated in the Company’s products incurred subsequent to the establishment of technological feasibility are capitalized and amortized over the estimated useful lives of the related products. Technological feasibility is established upon completion of a working model. | |||||||||||
Credit Risk and Inventory Supplier Concentrations | |||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash equivalents consist of money market funds, which are invested through financial institutions in the United States. Deposits in these financial institutions may, at times, exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company also has approximately $3.8 million of cash held by its foreign subsidiaries in China and the United Kingdom. Management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to these cash and cash equivalents. | |||||||||||
Concentrations of credit risk in relation to customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated. | |||||||||||
Percentage of Accounts Receivable | Percentage of Revenue | ||||||||||
At December 31, | Years Ended December 31, | ||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | |||||||
CenturyLink | * | 15% | 23% | 26% | 21% | ||||||
Ericsson (1) | * | 12% | * | * | * | ||||||
(1) Includes certain of Ericsson's consolidated subsidiaries. | |||||||||||
* Less than 10% of total accounts receivable or revenue. | |||||||||||
The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company records a specific allowance based on an analysis of individual past-due balances. Additionally, based on its historical write-offs and collections experience, the Company records an additional allowance based on a percentage of outstanding receivables. The Company performs credit evaluations of its customers’ financial condition. These evaluations require significant judgment and are based on a variety of factors including, but not limited to, current economic trends, payment history and financial review of the customer. Actual collection losses may differ from management’s estimates, and such differences could be material to the Company’s financial position and results of operations. | |||||||||||
The Company depends primarily on a small number of outside contract manufacturers for the bulk of its finished goods inventory. In particular, the Company relies on Flextronics for the manufacture of most of its products. The Company generally purchases its products through purchase orders with its suppliers or contract manufacturers. While the Company seeks to maintain a sufficient reserve of its products, the Company’s business and results of operations could be adversely affected by a stoppage or delay in receiving such products, the receipt of defective parts, an increase in price of such products or the Company’s inability to obtain lower prices from its contract manufacturers and suppliers in response to competitive pressures. | |||||||||||
Fair Value of Financial Instruments | |||||||||||
The carrying amounts of cash and cash equivalents, marketable securities, trade receivables, accounts payable, and other accrued liabilities approximate their fair value due to their relatively short-term nature. | |||||||||||
Cash, Cash Equivalents, and Marketable Securities | |||||||||||
The Company has invested its excess cash primarily in money market funds and highly liquid marketable securities such as corporate debt instruments and commercial paper. The Company considers all investments with maturities of three months or less when purchased to be cash equivalents. Marketable securities represent highly liquid corporate debt instruments and commercial paper with maturities greater than 90 days at date of purchase. Marketable securities with maturities greater than one year are classified as current because management considers all marketable securities to be available for current operations. | |||||||||||
Cash equivalents and marketable securities are stated at amounts that approximate fair value based on quoted market prices. | |||||||||||
The Company’s investments have been classified and accounted for as available-for-sale. Such investments are recorded at fair value and unrealized holding gains and losses are reported as a separate component of comprehensive loss in the stockholders’ equity until realized. Realized gains and losses on sales of marketable securities, if any, are determined on the specific identification method and are reclassified from accumulated other comprehensive income to results of operations as other income (expense). | |||||||||||
The Company, to date, has not determined that any of the unrealized losses on its investments are considered to be other-than-temporary. The Company reviews its investment portfolio to determine if any security is other-than-temporarily impaired, which would require the Company to record an impairment charge in the period any such determination is made. In making this judgment, the Company evaluates, among other things: the duration and extent to which the fair value of a security is less than its cost; the financial condition of the issuer and any changes thereto; and the Company’s intent and ability to hold its investment for a period of time sufficient to allow for any anticipated recovery in market value, or whether the Company will more likely than not be required to sell the security before recovery of its amortized cost basis. The Company has evaluated its investments as of December 31, 2014 and has determined that no investments with unrealized losses are other-than-temporarily impaired. No investments have been in a continuous loss position greater than one year. | |||||||||||
Restricted Cash | |||||||||||
As of each of December 31, 2014 and 2013, the Company had $0.3 million cash restricted for collateralizing the outstanding letters of credit with Silicon Valley Bank. | |||||||||||
Inventory | |||||||||||
Inventory, which primarily consisted of finished goods purchased from contract manufacturers, is stated at the lower of cost, determined by the first-in, first-out method, or market value. Inbound shipping costs are included in cost of inventory. In addition, the Company, from time to time, procures component inventory primarily as a result of manufacturing discontinuation of critical components by suppliers. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based on the Company’s estimate of demand for its products, potential obsolescence of technology, product life cycles, and whether pricing trends or forecasts indicate that the carrying value of inventory exceeds its estimated selling price. These factors are impacted by market and economic conditions, technology changes, and new product introductions and require estimates that may include elements that are uncertain. Actual demand may differ from forecasted demand and may have a material effect on gross margins. If inventory is written down, a new cost basis is established that cannot be increased in future periods. Shipments from our suppliers or contract manufacturers before the Company receives them are recorded as in-transit inventory when title and the significant risks and rewards of ownership have passed to the Company. | |||||||||||
Deferred Cost of Revenue | |||||||||||
When the Company’s products have been shipped, but the product revenue associated with the arrangement has been deferred as a result of not meeting the criteria for immediate revenue recognition, the Company also defers the related inventory costs for the delivered items until all criteria are met for revenue recognition. Deferred cost of revenue also includes installation service costs related to customer installation projects in which the revenue has been deferred until completion of the project and, to a lesser extent, trial orders that are pending acceptance. | |||||||||||
Property and Equipment | |||||||||||
Property and equipment are stated at cost, less accumulated depreciation, and are depreciated using the straight-line method over the estimated useful life of each asset. Computer equipment is depreciated over two years; purchased software is depreciated over three years; test equipment is depreciated over three years; furniture and fixtures are depreciated over seven years; and leasehold improvements are depreciated over the shorter of the respective lease term or the estimated useful life of the asset. Maintenance and repairs are charged to expense as incurred. | |||||||||||
Goodwill | |||||||||||
The Company records goodwill when consideration paid in a business acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. 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. The Company evaluates goodwill on an annual basis as of the end of the second quarter of each fiscal year. Management has determined that it operates as a single reporting unit and, therefore, evaluates goodwill impairment at the enterprise level. | |||||||||||
In an annual impairment test, the Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In assessing the qualitative factors, management considers 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. If the Company determines as a result of the qualitative assessment that it is more likely than not (that is, a likelihood of more than 50 percent) 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. | |||||||||||
In a quantitative test, the Company compares its fair value to its carrying value including goodwill. The Company determines its fair value using both an income approach and a market approach. Under the income approach, the Company determines fair value based on estimated future cash flows, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the Company and the rate of return an outside investor would expect to earn. Under the market-based approach, the Company utilizes information regarding the Company as well as publicly available industry information to determine earnings multiples that are used to value the Company. If the carrying value of the Company exceeds its fair value, the Company will determine the amount of impairment loss by comparing the implied fair value of goodwill with the carrying value of goodwill. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. | |||||||||||
At the end of the second quarter of 2014, the Company has completed its annual goodwill impairment test. Based on its assessment of the above qualitative factors, management concluded that the fair value of the Company was more likely than not greater than its carrying amount as of June 28, 2014. As such, it was not necessary to perform the two-step quantitative goodwill impairment test at the time. Subsequent to the 2014 annual impairment test, there have been no significant events or circumstances affecting the valuation of goodwill. As of December 31, 2014, there was no impairment to the carrying value of the Company's goodwill. There were no impairment losses for goodwill during 2013 and 2012. | |||||||||||
Intangible Assets and Other Long-Lived Assets | |||||||||||
Intangible assets with finite useful lives are amortized over their estimated useful life, generally five years. The Company periodically evaluates long-lived assets, including intangible assets, for impairment whenever events or changes in circumstances indicate that a potential impairment may have occurred. If such events or changes in circumstances arise, the Company compares the carrying amount of the long-lived assets to the estimated future undiscounted cash flows expected to be generated by the long-lived assets. If the estimated aggregate undiscounted cash flows are less than the carrying amount of the long-lived assets, an impairment charge, calculated as the amount by which the carrying amount of the assets exceeds the fair value of the assets, is recorded. The fair value of long-lived assets is determined based on the estimated discounted cash flows expected to be generated from the assets. The Company has reviewed events and changes to its business during the year and has determined that there was no impairment to its intangible assets and other long-lived assets during 2014. The Company did not incur any impairment losses for intangible assets and other long-lived assets during 2013 and 2012. | |||||||||||
Income Taxes | |||||||||||
The Company evaluates its tax positions and estimates its current tax exposure along with assessing temporary differences that result from different book to tax treatment of items not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities on the Company’s balance sheets, which are estimated based upon the difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates that will be in effect when these differences reverse. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in the Company’s statements of operations become deductible expenses under applicable income tax laws or loss or credit carryforwards are utilized. Accordingly, realization of the Company’s deferred tax assets is dependent on future taxable income against which these deductions, losses and credits can be utilized. | |||||||||||
The Company must assess the likelihood that the Company’s deferred tax assets will be recovered from future taxable income, and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance. Management judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and any valuation allowance recorded against the Company’s net deferred tax assets. Excluding our foreign operations, the Company recorded a full valuation allowance at each balance sheet date presented because, based on the available evidence, the Company believes it is more likely than not that it will not be able to utilize all of its deferred tax assets in the future. The Company intends to maintain the full valuation allowances until sufficient evidence exists to support the reversal of the valuation allowances. | |||||||||||
Foreign Currency Translation | |||||||||||
Assets and liabilities of the Company’s wholly owned foreign subsidiaries are translated from their respective functional currencies at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the monthly average exchanges rates. Any material resulting translation adjustments are reflected as a separate component of stockholders’ equity. Realized foreign currency transaction gains and losses were not significant during the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Recent Accounting Pronouncements | |||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which provides guidance for revenue recognition. ASU 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. Additionally, it supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the previous guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard will be effective for the Company in the first quarter of fiscal 2017. Early adoption is not permitted. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |||||||||||
In July 2013, the 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 explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. Under the new standard, the Company’s unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The accounting standard update became effective for the Company in the first quarter of 2014. As the Company’s disclosures already conform to the required presentation, adoption of this standard did not impact the financial position or results of operations of the Company. |
Business_Combinations
Business Combinations | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Business Combinations | Business Combinations | |||
Acquisition of Ericsson Fiber Access Assets | ||||
On November 2, 2012, Calix acquired the fiber access assets of Ericsson Inc. ("Ericsson"), including the Ericsson EDA 1500 GPON solution and its complementary ONT portfolio, under an Asset Purchase Agreement ("EFAA Acquisition"). In connection with this acquisition, Calix and Ericsson also signed a non-exclusive global reseller agreement, under which Calix became Ericsson's preferred global partner for broadband access applications. Calix expected this partnership to provide Calix with an extensive new global reseller channel, and Calix believed that its acquisition of Ericsson's fiber access portfolio delivered powerful new complements to Calix's industry-leading Unified Access portfolio. Calix expected that this partnership would also provide Ericsson's existing fiber access customers with world-class support and maintenance, and an expanded portfolio of access systems and software from a leading company totally focused on access. | ||||
The EFAA Acquisition was accounted for as a business combination under ASC Topic 805. The Company finalized the fair values of the acquired assets and assumed liabilities from Ericsson, as summarized in the following table (in thousands), and closed the measurement period in 2013. | ||||
At November 2, 2012 | ||||
Inventory | $ | 9,361 | ||
Other current asset | 739 | |||
Property and equipment | 3,616 | |||
Other current liabilities | (124 | ) | ||
Deferred tax liability | (563 | ) | ||
Net assets acquired | 13,029 | |||
Gain on bargain purchase | (1,029 | ) | ||
Total purchase price | $ | 12,000 | ||
Total consideration for the purchase price was $12.0 million in cash. Because the fair value of identifiable assets acquired, net of liabilities assumed, exceeded the consideration transferred, the Company recognized a bargain purchase gain of $1.0 million, net of income taxes. The Company reassessed the recognition and measurement of identifiable assets acquired and liabilities assumed and concluded that all acquired assets and assumed liabilities were recognized and that the valuation procedures and resulting measures were appropriate. The gain is included as a separate line item on the Company's Consolidated Statements of Comprehensive Loss for the year ended December 31, 2012. | ||||
Pursuant to the Asset Purchase Agreement, the Company received a credit of approximately $3.3 million ("Ericsson Credit") that would expire on August 31, 2013 without cash value. The Ericsson Credit was recorded at fair value as of the date of the acquisition and it could be used for consulting services, additional inventory, and test equipment agreed to by both parties. During 2013, due to the Company's marketing and selling effort as well as changes in the market, the Company succeeded in obtaining inventories and equipment from Ericsson using the Ericsson Credit in a total amount in excess of the fair value of the Ericsson Credit that was recorded by the Company upon the completion of the acquisition. The Company recorded such inventories received at their fair market value and recognized a gain of $1.7 million for the amount in excess of the fair value of the Ericsson Credit within 'Utilization of inventory credit' in our consolidated statement of comprehensive loss. Subsequent to the acquisition, Ericsson extended the expiration date of the Ericsson Credit to December 31, 2014. | ||||
The Company recognized $1.4 million of acquisition-related costs in 2012 in connection with the EFAA Acquisition. These costs are included in the Consolidated Statements of Comprehensive Loss in the line item entitled “Acquisition-related expenses” within Operating expenses. | ||||
The assets, liabilities, and operating results associated with the EFAA Acquisition have been included in the Company's consolidated financial statements from the date of acquisition. For 2013 and onwards, it is impracticable to determine the results of operations or the revenue which resulted from the EFAA acquisition as the acquired business had been integrated into our operations beginning in 2013. For 2012, approximately $0.6 million of our total revenue resulted from the EFAA acquisition. Pro forma results of operations have not been presented because it is impracticable to obtain the historical operating results of EFAA before the acquisition on a standalone basis and that the effect of the acquisition was not material to our consolidated results of operations. |
Cash_Cash_Equivalents_and_Mark
Cash, Cash Equivalents and Marketable Securities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||
Cash, Cash Equivalents, and Marketable Securities | Cash, Cash Equivalents and Marketable Securities | ||||||||||||||||
Cash, cash equivalents and marketable securities consisted of the following (in thousands): | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 17,866 | $ | 62,905 | |||||||||||||
Money market funds | 30,963 | 19,842 | |||||||||||||||
Total cash and cash equivalents | 48,829 | 82,747 | |||||||||||||||
Marketable securities: | |||||||||||||||||
Corporate debt securities | 61,050 | — | |||||||||||||||
Commercial paper | 1,800 | — | |||||||||||||||
Total marketable securities | 62,850 | — | |||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 111,679 | $ | 82,747 | |||||||||||||
The carrying amounts of our money market funds approximate their fair values due to their nature, duration and short maturities. | |||||||||||||||||
The amortized cost and fair value of marketable securities as of December 31, 2014 were as follows (in thousands): | |||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||
Corporate debt securities | $ | 61,108 | $ | 1 | $ | (59 | ) | $ | 61,050 | ||||||||
Commercial paper | 1,800 | — | $ | — | 1,800 | ||||||||||||
Total marketable securities | $ | 62,908 | $ | 1 | $ | (59 | ) | $ | 62,850 | ||||||||
As of December 31, 2014, there are no marketable securities, classified and accounted for as available-for-sale securities, that have been in a continuous unrealized loss position in excess of twelve months. | |||||||||||||||||
As of December 31, 2014, the amortized cost and fair value of marketable securities by contractual maturity were as follows (in thousands): | |||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||
Due in 1 year or less | $ | 59,835 | $ | 59,776 | |||||||||||||
Due in 1-2 years | 3,073 | 3,074 | |||||||||||||||
Total marketable securities | $ | 62,908 | $ | 62,850 | |||||||||||||
As of December 31, 2013, the Company did not hold any marketable securities. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Intangible Assets | 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 or impairment to goodwill since the acquisition dates. | |||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||
Intangible assets are carried at cost, less accumulated amortization. The details of intangible assets as of December 31, 2014 and 2013 are disclosed in the following table (in thousands): | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Core developed technology | $ | 68,964 | $ | (55,694 | ) | $ | 13,270 | $ | 68,964 | $ | (47,339 | ) | $ | 21,625 | |||||||||||
Customer relationships | 54,740 | (42,831 | ) | 11,909 | 54,740 | (32,625 | ) | 22,115 | |||||||||||||||||
Total intangible assets, excluding goodwill | $ | 123,704 | $ | (98,525 | ) | $ | 25,179 | $ | 123,704 | $ | (79,964 | ) | $ | 43,740 | |||||||||||
At the end of the first quarter of 2012, upon the completion of the research and development efforts associated with the $16.3 million in-process technology that was acquired from Occam, the Company determined that this technology had a useful life of 5 years and therefore reclassified it as core developed technology. The Company began amortizing this intangible asset to cost of revenue during the second quarter of 2012. | |||||||||||||||||||||||||
Amortization expense for intangible assets was $18.6 million, $18.6 million, and $17.7 million for the years ended December 31, 2014, 2013, and 2012, respectively. Expected future amortization expense for the fiscal years indicated is as follows (in thousands): | |||||||||||||||||||||||||
Period | Expected Amortization Expense | ||||||||||||||||||||||||
2015 | $ | 18,561 | |||||||||||||||||||||||
2016 | 5,805 | ||||||||||||||||||||||||
2017 | 813 | ||||||||||||||||||||||||
Total | $ | 25,179 | |||||||||||||||||||||||
Balance_Sheet_Details
Balance Sheet Details | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Balance Sheet Details | Balance Sheet Details | ||||||||
Accounts receivable, net consisted of the following (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 31,493 | $ | 44,642 | |||||
Allowance for doubtful accounts | (241 | ) | (358 | ) | |||||
Product return reserve | (508 | ) | (764 | ) | |||||
Accounts receivable, net | $ | 30,744 | $ | 43,520 | |||||
Inventory consisted of the following (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 3,180 | $ | 6,591 | |||||
Finished goods | 43,573 | 44,480 | |||||||
Total inventory | $ | 46,753 | $ | 51,071 | |||||
Property and equipment, net consisted of the following (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Test equipment | $ | 40,766 | $ | 36,932 | |||||
Computer equipment and purchased software | 30,355 | 27,280 | |||||||
Furniture and fixtures | 1,852 | 1,614 | |||||||
Leasehold improvements | 6,550 | 7,077 | |||||||
Total | 79,523 | 72,903 | |||||||
Accumulated depreciation and amortization | (59,379 | ) | (55,430 | ) | |||||
Property and equipment, net | $ | 20,144 | $ | 17,473 | |||||
Depreciation and amortization expense was $9.3 million, $10.2 million, $8.6 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
Accrued liabilities consisted of the following (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued compensation and related benefits | $ | 15,782 | $ | 13,127 | |||||
Accrued warranty | 9,553 | 10,856 | |||||||
Accrued professional and consulting fees | 5,860 | 1,634 | |||||||
Accrued business travel expenses | 1,414 | 540 | |||||||
Accrued excess and obsolete inventory at contract manufacturers | 888 | 756 | |||||||
Accrued customer rebates | 851 | 712 | |||||||
Accrued rent reserve | 412 | 341 | |||||||
Sales and use tax payable | 397 | 521 | |||||||
Accrued freight | 303 | 612 | |||||||
Income taxes payable | 269 | 368 | |||||||
Accrued other | 3,714 | 2,608 | |||||||
Total accrued liabilities | $ | 39,443 | $ | 32,075 | |||||
Deferred revenue consisted of the following (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred Revenue: | |||||||||
Product and services - current | $ | 9,753 | $ | 32,051 | |||||
Extended warranty - current | 2,969 | 2,811 | |||||||
Extended warranty - non-current | 19,211 | 18,335 | |||||||
Product and services - non-current | 182 | 96 | |||||||
Total deferred revenue | $ | 32,115 | $ | 53,293 | |||||
Deferred cost of revenue consisted entirely of products and services. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies | Commitments and Contingencies | ||||||||||||
Lease Commitments | |||||||||||||
The Company leases office space under non-cancelable operating leases. Certain of the Company’s operating leases contain renewal options and rent acceleration clauses. Future minimum payments under the non-cancelable operating leases consisted of the following as of December 31, 2014 (in thousands): | |||||||||||||
Period | Minimum Future Lease Payments | ||||||||||||
2015 | $ | 3,193 | |||||||||||
2016 | 2,658 | ||||||||||||
2017 | 2,594 | ||||||||||||
2018 | 2,325 | ||||||||||||
2019 | 579 | ||||||||||||
Thereafter | 470 | ||||||||||||
Total | $ | 11,819 | |||||||||||
The above total minimum payments have not been reduced by minimum sublease rentals of $0.1 million due in the future under non-cancelable sublease of a portion of the Company's office in Fremont, California. | |||||||||||||
The Company leases its primary office space in Petaluma, California under a lease agreement ("Petaluma Lease") that extends through February 2014. On January 28, 2013, the Company entered into an amendment to its Petaluma Lease ("Amendment") to extend the lease term to February 2019. In connection with the Petaluma Lease and the Amendment, the Company received lease incentives of $1.2 million and $0.4 million, respectively, which can be used for leasehold improvements or be applied as credits to rent payments. The Company had capitalized the full amount of the lease incentives upon inception of the respective agreement and these incentives are being amortized to reduce rent expense over the extended lease term. As of December 31, 2014, total unamortized lease incentive 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 Consolidated Balance Sheet as of December 31, 2014. Payments under the Company’s operating leases that escalate over the term of the lease are recognized as rent expense on a straight-line basis. | |||||||||||||
The above table also includes future minimum lease payments primarily for our facilities in Minneapolis, Minnesota; Acton, Massachusetts; Nanjing, China; Richardson, Texas; and Fremont, San Jose, and Santa Barbara, California, which expire at various dates through 2022, and for certain office equipment under non-cancelable operating lease agreements, which expire at various dates through 2015. | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, total rent expense of the Company, net of sublease income, was $4.1 million, $3.9 million, $3.5 million, respectively. | |||||||||||||
Purchase Commitments | |||||||||||||
The Company’s primary contract manufacturers place orders for component inventory in advance based upon the Company’s build forecasts in order to reduce manufacturing lead times and ensure adequate component supply. The components are used by the contract manufacturers to build the products included in the build forecasts. The Company does not take ownership of the components and any outstanding orders do not represent firm purchase commitments pursuant to the Company’s agreement with the contract manufacturer. The Company will provide purchase orders to its contract manufacturers in order to fulfill its monthly finished product inventory requirements. The Company incurs a liability when the contract manufacturer has converted the component inventory to a finished product and takes ownership of the inventory when transferred to the designated shipping warehouse. However, historically, the Company has reimbursed its primary contract manufacturer for component inventory purchases when this inventory has been rendered excess or obsolete, for example due to manufacturing and engineering change orders resulting from design changes, manufacturing discontinuation of parts by its suppliers, or in cases where inventory levels greatly exceed projected demand. The estimated excess and obsolete inventory liabilities related to such manufacturing and engineering change orders and other factors, which are included in accrued liabilities in the accompanying balance sheets, were $0.9 million and $0.8 million as of December 31, 2014 and 2013, respectively. The Company records these amounts in cost of products and services in its Consolidated Statements of Comprehensive Loss. | |||||||||||||
As of December 31, 2014, the Company had non-cancelable outstanding purchase orders of $24.8 million for finished goods to be delivered by its contract manufacturers within one year. | |||||||||||||
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 in the periods as indicated were as follows (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 10,856 | $ | 11,762 | $ | 12,104 | |||||||
Warranty charged to cost of revenue | 3,394 | 4,350 | 4,701 | ||||||||||
Utilization of warranty | (4,697 | ) | (5,256 | ) | (5,043 | ) | |||||||
Balance at end of period | $ | 9,553 | $ | 10,856 | $ | 11,762 | |||||||
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 (the “Effective Date”). 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 was held on December 6, 2013. | |||||||||||||
On April 8, 2014, the Court of Chancery of the State of Delaware issued an Opinion granting in part and denying in part the Defendants’ Motion for Summary Judgment. The court granted summary judgment in favor of those defendants who served solely as directors of Occam with respect to all claims alleging improper actions in connection with the Occam sale process. The ruling also granted summary judgment on all claims as to Occam, the corporate entity. The court left in place process-based claims against Occam’s former CEO and CFO, and also declined to grant summary judgment on separate claims that the director and officer defendants breached their fiduciary duties by issuing a proxy statement for Occam’s stockholder vote that allegedly contained misleading disclosures and had material omissions. | |||||||||||||
On June 12, 2014, the plaintiffs filed a Motion to Compel Production of Documents by Defendants and Jefferies & Company, Inc. and For Sanctions Against Defendants. This motion sought additional documents from defendants and from Jefferies, Occam’s former advisor, and requested that the court impose severe sanctions, up to and including a finding of liability against defendants. Defendants have rejected the suggestion that any additional documents should be produced and vigorously opposed the imposition of any sanctions. On September 3, 2014, the court denied the motion without prejudice as to defendants, directed counsel for the defendants to provide an affidavit clarifying the prior conduct of discovery, and ordered discovery into defendants’ document collection and review methodologies. The court also ordered Jefferies to produce additional documents. Those proceedings are ongoing, but the plaintiffs have indicated that they do not intend to seek any sanctions against the defendants at this time. Instead, plaintiffs have filed a motion requesting leave to amend their complaint to add Jefferies and Wilson Sonsini Goodrich & Rosati, P.C., former defense counsel in this lawsuit, as defendants. That motion is scheduled to be heard by the Court on March 17, 2015. | |||||||||||||
The Company continues to believe that the allegations in the Second Amended Complaint are without merit and intends to continue to vigorously contest the action as it moves forward toward trial. However, there can be no assurance that the defendants 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 officers to the fullest extent permitted under Delaware law and Occam's bylaws and certificate of incorporation. Such obligations may apply to this lawsuit and may ultimately result in the payment of indemnification amounts by the Company, and the Company currently expects that, if the case proceeds to trial, defense costs are likely to exceed available Directors & Officers liability insurance coverage. | |||||||||||||
In addition, under the engagement letter between Occam and Jefferies, the Company has obligations, under certain circumstances, to hold harmless and indemnify Jefferies against judgments, fines, settlements and expenses related to Jefferies’ engagement by Occam, and Jefferies has demanded that the Company indemnify Jefferies in connection with this litigation under this agreement. Following Jefferies demand for indemnification the Company notified Occam’s insurance carriers, and such carriers have advised in writing that they do not believe the Jefferies indemnification obligations are covered by the Company’s insurance. Thus, the Company’s indemnification obligations to Jefferies may apply to this lawsuit and may not be covered by insurance. | |||||||||||||
As previously noted, the plaintiffs have not communicated any specific demand for damages. However, the plaintiffs’ valuation expert has opined that the fair value of Occam’s common stock on the Effective Date exceeded the merger consideration by between $7.77 and $9.65 per share. Defendants’ valuation expert has opined that the fair value of Occam’s common stock on the Effective Date was less than the merger consideration. The Company estimates that as of the Effective Date, the class held approximately 15,147,085 shares of Occam’s common stock. In addition to the difference between the fair value of Occam’s common stock on the Effective Date and the merger consideration, the plaintiffs also seek an award of attorneys’ fees and costs, pre-judgment interest relating back to the Effective Date, and post-judgment interest. | |||||||||||||
At this time, the Company is unable to quantify its indemnification risk. The Company may have indemnity obligations that are in excess of its insurance coverage, particularly if there is an adverse result at trial. Any such costs could have a material adverse effect on the Company’s business, operating results or financial condition. Trial of the matter is currently scheduled to commence on April 20, 2015. | |||||||||||||
Additional information and other developments became available after December 31, 2014 relating to certain additional legal fees and associated expenses incurred by advisers previously retained by Occam in connection with its acquisition by Calix and related to the ongoing Occam class action litigation. Such information and developments enabled the Company to assess the need to recognize and accrue for a potential associated loss contingency. As a result, the Company recognized and recorded additional legal fees and associated expenses of approximately $1.0 million in the accompanying Consolidated Statement of Comprehensive Loss for the year ended December 31, 2014. | |||||||||||||
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. | |||||||||||||
Guarantees | |||||||||||||
The Company from time to time enters into contracts that require it to indemnify various parties against claims from third parties. These contracts primarily relate to (i) certain real estate leases, under which the Company may be required to indemnify property owners for environmental and other liabilities, and other claims arising from the Company’s use of the applicable premises, (ii) certain agreements with the Company’s officers, directors, and employees, under which the Company may be required to indemnify such persons for liabilities arising out of their relationship with the Company, (iii) contracts under which the Company may be required to indemnify customers against third-party claims that a Company product infringes a patent, copyright, or other intellectual property right and (iv) procurement or license agreements, under which the Company may be required to indemnify licensors or vendors for certain claims that may be brought against them arising from the Company’s acts or omissions with respect to the supplied products or technology. | |||||||||||||
Generally, a maximum obligation under these contracts is not explicitly stated. Because the obligated amounts associated with these types of agreements are not explicitly stated, the overall maximum amount of the obligation cannot be reasonably estimated. Historically, the Company has not been required to make payments under these obligations, and no liabilities have been recorded for these obligations in the Company’s balance sheets. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||
In accordance with ASC Topic 820, "Fair Value Measurements and Disclosures," (“ASC Topic 820”), the Company measures its cash equivalents and marketable securities 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 as of December 31, 2014 and December 31, 2013, based on the three-tier fair value hierarchy (in thousands): | |||||||||||||
As of December 31, 2014 | Level 1 | Level 2 | Total | ||||||||||
Money market funds | $ | 30,963 | $ | — | $ | 30,963 | |||||||
Corporate debt securities | — | 61,050 | 61,050 | ||||||||||
Commercial paper | — | 1,800 | 1,800 | ||||||||||
Total | $ | 30,963 | $ | 62,850 | $ | 93,813 | |||||||
As of December 31, 2013 | Level 1 | Level 2 | Total | ||||||||||
Money market funds | $ | 19,842 | $ | — | $ | 19,842 | |||||||
Corporate debt securities | — | — | — | ||||||||||
Commercial paper | — | — | — | ||||||||||
Total | $ | 19,842 | $ | — | $ | 19,842 | |||||||
The fair values of money market funds classified as Level 1 were derived from quoted market prices as active markets for these instruments exist. The fair values of corporate debt securities and commercial paper classified as Level 2 were derived from quoted market prices for similar instruments indexed to prevailing market yield rates. The Company has no level 3 financial assets. The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the twelve months ended December 31, 2014 and December 31, 2013. |
Net_Loss_per_Share
Net Loss per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Loss per Share | Net Loss per Share | |||||||||||
The following table sets forth the computation of basic and diluted net loss per share for the periods indicated (in thousands, except per share data): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator: | ||||||||||||
Net loss | $ | (20,814 | ) | $ | (17,265 | ) | $ | (28,326 | ) | |||
Denominator: | ||||||||||||
Weighted-average common shares outstanding | 50,808 | 49,419 | 48,180 | |||||||||
Basic and diluted net loss per common share | $ | (0.41 | ) | $ | (0.35 | ) | $ | (0.59 | ) | |||
Potentially dilutive shares, weighted-average | 5,020 | 5,308 | 4,454 | |||||||||
For all the three years presented, unvested restricted stock awards are included in the calculation of basic weighted-average shares because such shares are participating securities, however the impact was immaterial. | ||||||||||||
Potentially dilutive shares are excluded from the computation of the basic and diluted net loss per share because their effect is antidilutive. These antidilutive shares were primarily from stock options, restricted stock units and performance restricted stock awards. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity | ||||||||||||||||||||
Common Stock | |||||||||||||||||||||
On March 2, 2010, the Company’s board of directors approved an amended and restated certificate of incorporation that increased the authorized common stock to 100 million shares and the authorized preferred stock to 5.0 million shares effective immediately prior to the completion of the Company’s initial public offering on March 26, 2010. | |||||||||||||||||||||
On March 21, 2010, the Company’s board of directors approved an amended and restated certificate of incorporation effecting a 2-for-3 reverse stock split of its common stock and all convertible preferred stock. The par value and the authorized shares of the common stock and convertible preferred stock were not adjusted as a result of the reverse stock split. All issued and outstanding common stock, convertible preferred stock, warrants for common stock, warrants for preferred stock, and per share amounts contained in the financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. The reverse stock split was effected on March 23, 2010. | |||||||||||||||||||||
On March 26, 2010, the Company completed its initial public offering in which 4,166,666 shares of common stock were sold by the Company at a public offering price of $13.00 per share. Gross proceeds of $54.2 million from the sale of common stock by the Company were reduced by issuance costs of $4.6 million and underwriters fees of $3.8 million. On April 8, 2010, the Company issued and sold 949,339 shares of common stock resulting from the exercise of the underwriters’ option to purchase common shares associated with the Company’s initial public offering. This sale resulted in gross proceeds of $12.3 million based on an initial public offering price of $13.00 per share of common stock, which were reduced by underwriters’ discount and offering expenses payable by the Company of $0.8 million. | |||||||||||||||||||||
On February 22, 2011, in connection with the acquisition of Occam, the Company issued 6.4 million shares of the Company’s common stock, a value of $117.2 million. | |||||||||||||||||||||
Holders of our common stock are entitled to receive dividends, if any, as may be declared from time to time by our board of directors out of legally available funds. No dividends have been declared or paid as of December 31, 2014. In the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then outstanding shares of preferred stock. | |||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
The board of directors has the authority, without action by stockholders with the exception of stockholders who hold board positions, to designate and issue up to 5.0 million shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of common stock. The issuance of the Company’s preferred stock could adversely affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control of the Company or other corporate action. Subsequent to the Company’s initial public offering and the conversion of all preferred stock outstanding at that date, the board of directors has not designated any rights, preference or powers of any preferred stock and no shares of preferred stock have been issued. | |||||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||||
Prior to March 2010, the Company had the 2000 Stock Plan ("2000 Plan") and the Amended and Restated 2002 Stock Plan ("2002 Plan") (together, "Prior Plans"). Under the Prior Plans, the Company may grant incentive stock options at a price not less than 100% of the fair market value of the common stock on the date of grant and non-statutory stock options at a price not less than 85%, or, with respect to the 2002 Plan, 100% of the fair market value of the common stock on the date of grant. Before April 2004, certain options could be granted with the right to exercise those options before vesting. The majority of the stock options granted under the Prior Plans vest over 4 years and expire in 10 years. | |||||||||||||||||||||
On March 2, 2010, the Company’s Board of Directors approved the 2010 Equity Incentive Award Plan ("2010 Plan") which allows the Company to grant stock options, restricted stock awards ("RSA"), restricted stock units ("RSU"), performance restricted stock units ("PRSU"), stock appreciation rights, dividend equivalents, deferred stock, and stock payments to employees, directors and consultants of the Company. A total of 4,666,666 shares of common stock were reserved for future issuance under the 2010 Plan, which became effective upon the completion of the Company’s initial public offering of common stock. In addition, on the first day of each year beginning in 2011 and ending in 2020, the 2010 Plan provides for an annual automatic increase to the shares reserved for issuance and no more than 17,150,494 shares of Common Stock may be issued upon the exercise of Incentive Stock Options. Pursuant to the automatic annual increase, a total of 2,666,664 additional shares had been reserved under the 2010 Plan since 2011. | |||||||||||||||||||||
Upon the effectiveness of the 2010 Plan, equity awards were granted only under the 2010 Plan and shares of common stock previously reserved for issuance under the Prior Plans became available for issuance under the 2010 Plan. To date, awards granted under the 2010 Plan consist of stock options, RSAs, RSUs and PRSUs. | |||||||||||||||||||||
Stock options granted under the 2010 Plan are granted in general at a price not less than 100% of the fair market value of the common stock on the date of grant. Generally, the options issued under the 2010 Plan vest 25% on the first anniversary of the vesting commencement date and on a monthly basis thereafter for a period of an additional three years. The options have a maximum term of ten years. | |||||||||||||||||||||
Each RSU granted under the 2010 Plan represents a right to receive one share of the Company’s common stock (subject to adjustment for certain specified changes in the capital structure of the Company) upon the completion of a specific period of continued service. The majority of RSUs granted vest over four years. | |||||||||||||||||||||
In July 2011, the Company granted 423,000 RSAs to executives under the 2010 Plan, which vest 25% per year for 4 years from the grant date. Upon issuance of RSA, the holder is entitled to have all the rights of a stockholder, subject to the restrictions in his or her Award Agreement, including the right to receive all dividends and other distributions paid or made with respect to the shares. | |||||||||||||||||||||
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. | |||||||||||||||||||||
Stock Option Exchange Program | |||||||||||||||||||||
On September 23, 2009, the Company completed a stock option exchange program, which was approved by its board of directors, pursuant to which eligible employees were able to exchange eligible stock options for restricted stock units on a one-for-one basis. Pursuant to the exchange, the Company canceled options for 3.4 million shares of the Company’s common stock and issued an equivalent number of RSUs to eligible holders on September 23, 2009, of which 50% vested in October 2010 and the remaining 50% vested in May 2011. In connection with the RSU grants, the unrecognized compensation expense related to the exchanged options was expensed over the remainder of the original vesting period of the options exchanged. The incremental cost due to the exchange was deferred until a liquidity event, which happened with the Company’s IPO, and had been recognized in accordance with the vesting periods described above. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
The following table summarizes the activity of stock options under the Company’s equity incentive plans (in thousands, except per share data): | |||||||||||||||||||||
Weighted- | Weighted-Average | ||||||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||||||
Number of | Exercise Price | Contractual Life | Intrinsic | ||||||||||||||||||
Stock Options | Shares | Per Share | (in years) | Value (1) | |||||||||||||||||
Outstanding as of December 31, 2013 | 2,560 | $ | 12.96 | ||||||||||||||||||
Granted | 1,880 | 9.29 | |||||||||||||||||||
Exercised | (224 | ) | 7.44 | ||||||||||||||||||
Forfeited | (258 | ) | 9.21 | ||||||||||||||||||
Expired | (257 | ) | 17.44 | ||||||||||||||||||
Outstanding as of December 31, 2014 | 3,701 | $ | 11.38 | 7.9 | $ | 3,291 | |||||||||||||||
Vested and expected to vest as of December 31, 2014 | 3,610 | $ | 11.43 | 7.9 | $ | 3,218 | |||||||||||||||
Options exercisable as of December 31, 2014 | 1,474 | $ | 14.34 | 5.8 | $ | 1,377 | |||||||||||||||
(1) Amounts represent the difference between the exercise price and the fair market value of common stock at December 31, 2014 for all in the money options outstanding. | |||||||||||||||||||||
During the years ended December 31, 2014, 2013, and 2012, total intrinsic value of stock options exercised was $0.6 million, $1.0 million, $0.6 million, respectively. Total cash received from employees as a result of stock option exercises in 2014, 2013, and 2012 was $1.7 million, $0.7 million, $0.2 million, respectively. Total fair values of stock options vested during 2014, 2013 and 2012 was $3.7 million, $3.9 million, $4.6 million, respectively. | |||||||||||||||||||||
Restricted Stock Units, Performance Restricted Stock Units, and Restricted Stock Awards | |||||||||||||||||||||
The following table summarizes the activities of the Company's RSUs, PRSUs, and RSAs under the Company’s equity incentive plans (in thousands, except per share data): | |||||||||||||||||||||
RSUs | PRSUs | RSAs | |||||||||||||||||||
Weighted-Average | Weighted-Average | Weighted-Average | |||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||
Number of | Fair Value | Number of | Fair Value | Number of | Fair Value | ||||||||||||||||
Shares | Per Share | Shares | Per Share | Shares | Per Share | ||||||||||||||||
Outstanding at December 31, 2013 | 1,506 | $ | 11.04 | 413 | $ | 12.81 | 189 | $ | 21.67 | ||||||||||||
Granted | 987 | 8.72 | 174 | 9.16 | — | — | |||||||||||||||
Vested | (661 | ) | 11.68 | (168 | ) | 14.61 | (117 | ) | 21.67 | ||||||||||||
Canceled | (98 | ) | 10.07 | (57 | ) | 10.8 | (10 | ) | 21.67 | ||||||||||||
Outstanding at December 31, 2014 | 1,734 | $ | 9.53 | 362 | $ | 10.53 | 62 | $ | 21.67 | ||||||||||||
Upon vesting of certain RSUs, PRSUs and RSAs, the Company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The number of shares withheld was based on the value of the RSUs, PRSUs or RSAs on their vesting date as determined by the Company’s closing stock price. The withheld shares are reserved for future grant and issuance under the 2010 Plan. | |||||||||||||||||||||
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 provided 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 years ended December 31, 2014 and 2013, $0.1 million and $0.5 million, respectively, of the total fair value has been recognized in general and administrative expenses of the Consolidated Statement of Comprehensive Loss in this Form 10-K. | |||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||
The Company’s 2010 Employee Stock Purchase Plan, as amended (“2010 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 2010 ESPP are six-month periods commencing on June 1 and December 1 of each year. In January of 2015, the Compensation Committee of the Company’s Board of Directors changed those six-month period commencement dates to November 2 and May 2, effective November 2, 2015. 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. | |||||||||||||||||||||
The 2010 ESPP, as amended in 2012, provides for the issuance of a maximum of 4.3 million shares of common stock. During the twelve months ended December 31, 2014, 682,832 shares were purchased and issued. As of December 31, 2014, there were 1.9 million shares available for issuance. | |||||||||||||||||||||
Stock Based Compensation | |||||||||||||||||||||
In accordance with ASC Topic 718, stock-based compensation expense associated with stock options, RSUs, PRSUs, RSAs, and purchase rights under the 2010 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. During the years ended December 31, 2014, 2013, and 2012, the Company recorded stock-based compensation expense of $16.0 million, $19.9 million and $17.4 million, respectively. | |||||||||||||||||||||
The following table summarizes the weighted-average grant date fair values of the Company's stock-based awards granted in the periods indicated: | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Stock options | $ | 4.79 | $ | 4.89 | $ | 4.68 | |||||||||||||||
RSUs | $ | 8.72 | $ | 9.2 | $ | 6.55 | |||||||||||||||
PRSUs | $ | 9.16 | $ | 11.24 | $ | 14.81 | |||||||||||||||
RSAs | N/A | N/A | N/A | ||||||||||||||||||
ESPP | $ | 2.46 | $ | 2.94 | $ | 2.34 | |||||||||||||||
The Company values the RSUs and RSAs at the closing market price of the Company’s common stock on the date of grant. | |||||||||||||||||||||
The fair value of the PRSU 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 and purchase rights under the 2010 ESPP 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 computed 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). This change of the method was made as the Company's common stock has now been publicly traded for more than two years, a sufficient history of stock prices had been developed. 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. Expected volatilities computed using this new method for stock options granted in the fourth quarter of 2012 was 66%. Prior to the fourth quarter of 2012, the Company’s computation of expected volatility was based on the Company’s peer group in the industry in which the Company does business. Expected volatilities computed using the old method for stock options granted in the first three quarters of 2012 ranged from 55% to 56%. | |||||||||||||||||||||
(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 and of each employee’s purchase right under the 2010 ESPP in the periods indicated: | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
Stock Options | 2014 | 2013 | 2012 | ||||||||||||||||||
Expected volatility | 52 | % | 62 | % | 56 | % | |||||||||||||||
Expected life (years) | 6.21 | 6.05 | 6.25 | ||||||||||||||||||
Expected dividend yield | — | — | — | ||||||||||||||||||
Risk-free interest rate | 1.87 | % | 1.14 | % | 1.06 | % | |||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
ESPP | 2014 | 2013 | 2012 | ||||||||||||||||||
Expected volatility | 45 | % | 50 | % | 63 | % | |||||||||||||||
Expected life (years) | 0.5 | 0.5 | 0.5 | ||||||||||||||||||
Expected dividend yield | — | — | — | ||||||||||||||||||
Risk-free interest rate | 0.07 | % | 0.09 | % | 0.13 | % | |||||||||||||||
In addition, the Company applies an estimated forfeiture rate to awards granted and records stock-based compensation expense only for those awards that are expected to vest. Forfeiture rates are estimated at the time of grant based on the Company's historical experience. Further, to the extent the Company's actual forfeiture rate is different from management's estimate, stock-based compensation is adjusted accordingly. | |||||||||||||||||||||
On February 22, 2011, in connection with the acquisition of Occam, the Company issued 536,190 stock options and 42,654 RSUs to certain Occam employees. The grants were in exchange for certain options and RSUs that were held by Occam employees prior to the acquisition which retained the original vesting schedule of the initial Occam grants, except for certain equity awards held by Occam executives that were accelerated in association with their severance agreements. The Company estimated the fair value of $5.8 million of the options and RSUs in accordance with ASC Topic 718. In accordance with ASC Topic 805, the Company allocated the value of $1.4 million of certain options and RSUs to consideration in the business combination with the remaining value of $4.5 million allocated to post-combination expense to be recognized over the remaining service period of the grants. | |||||||||||||||||||||
As of December 31, 2014, unrecognized stock-based compensation expenses by award type, net of estimated forfeitures, and their expected weighted-average recognition periods are summarized in the following table (in thousands). | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Stock Option | RSU | PRSU | RSA | ESPP | |||||||||||||||||
Unrecognized stock-based compensation expense | $ | 5,145 | $ | 10,768 | $ | 848 | $ | 699 | $ | 692 | |||||||||||
Weighted-average amortization period (in years) | 2.6 | 2.4 | 1.2 | 0.6 | 0.4 | ||||||||||||||||
Common Stock Warrants | |||||||||||||||||||||
Warrants to purchase convertible preferred stock that did not expire at the close of the Company’s initial public offering, in March 2010, converted to warrants to purchase common stock at the applicable conversion rate for the related preferred stock. As of December 31, 2014, the following warrants to purchase common stock were outstanding (in thousands, except per share data): | |||||||||||||||||||||
Expiration Date | Exercise Price | Number of Warrants Outstanding | |||||||||||||||||||
Per Share | |||||||||||||||||||||
September 4, 2017 | $ | 19.56 | 15 | ||||||||||||||||||
Shares Reserved for Future Issuance | |||||||||||||||||||||
The Company had common shares reserved for future issuance as follows (in thousands): | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Stock options outstanding | 3,701 | 2,560 | 2,213 | ||||||||||||||||||
Restricted stock units outstanding | 1,734 | 1,506 | 1,762 | ||||||||||||||||||
Performance restricted stock units outstanding | 362 | 413 | 183 | ||||||||||||||||||
Shares available for future grant under 2010 Plan | 2,283 | 3,652 | 3,959 | ||||||||||||||||||
Shares available for future issuance under ESPP | 1,891 | 2,574 | 3,260 | ||||||||||||||||||
Common stock warrants | 15 | 23 | 23 | ||||||||||||||||||
Total | 9,986 | 10,728 | 11,400 | ||||||||||||||||||
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan |
The Company sponsors a 401(k) tax-deferred savings plan for all employees who meet certain eligibility requirements. Participants may contribute, on a pre-tax basis, a percentage of their annual compensation, but not to exceed a maximum contribution amount pursuant to Section 401(k) of the Internal Revenue Code. The Company, at the discretion of the board of directors, may make additional matching contributions on behalf of the participants. The Company made matching contributions totaling $1.5 million, $1.5 million, and $1.4 million in 2014, 2013 and 2012, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | |||||||||||
The table below summarizes the changes in accumulated other comprehensive income (loss) by component for the periods indicated (in thousands). | ||||||||||||
Year Ended December 31, 2014 | ||||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | ||||||||||
Balance at beginning of period | $ | — | $ | 190 | $ | 190 | ||||||
Other comprehensive loss before | ||||||||||||
reclassification adjustments | (57 | ) | (52 | ) | (109 | ) | ||||||
Reclassification adjustment for realized gains on | ||||||||||||
marketable securities included in net loss | (1 | ) | — | (1 | ) | |||||||
Other comprehensive loss | (58 | ) | (52 | ) | (110 | ) | ||||||
Balance at end of period | $ | (58 | ) | $ | 138 | $ | 80 | |||||
Year Ended December 31, 2013 | ||||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | ||||||||||
Balance at beginning of period | $ | — | $ | 132 | $ | 132 | ||||||
Other comprehensive income | — | 58 | 58 | |||||||||
Balance at end of period | $ | — | $ | 190 | $ | 190 | ||||||
Year Ended December 31, 2012 | ||||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | ||||||||||
Balance at beginning of period | $ | — | $ | 98 | $ | 98 | ||||||
Other comprehensive income | — | 34 | 34 | |||||||||
Balance at end of period | $ | — | $ | 132 | $ | 132 | ||||||
Realized gains and losses on sales of available-for-sale marketable securities, if any, are reclassified from accumulated other comprehensive income to "Other income (expense)" in our Consolidated Statements of Comprehensive Loss. |
Credit_Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2014 | |
Line of Credit Facility [Abstract] | |
Credit Facility | 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 December 31, 2014, the Company had $0.3 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 the Company's assets, including its 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 December 31, 2014, 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 December 31, 2014, 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 December 31, 2014, the unamortized debt issuance costs of $0.2 million were included within "Other assets" in the Company's Consolidated Balance Sheets. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The domestic and foreign components of loss before provision for incomes taxes were as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (21,495 | ) | $ | (18,500 | ) | $ | (28,987 | ) | |||
Foreign | 1,262 | 1,221 | 819 | |||||||||
Loss before provision for income taxes | $ | (20,233 | ) | $ | (17,279 | ) | $ | (28,168 | ) | |||
The Company recorded a provision for/(benefit from) income taxes of $0.6 million, $(14.0) thousand, and $0.2 million, in 2014, 2013 and 2012, respectively. The income tax provision for 2014 primarily consisted of state and foreign income taxes. | ||||||||||||
Provision for (benefit from) income taxes consisted of the following for the periods indicated (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal current income tax (benefit) | $ | — | $ | (274 | ) | $ | 152 | |||||
State current income tax | 104 | 41 | 73 | |||||||||
Foreign current income tax | 469 | 315 | 440 | |||||||||
Federal deferred income tax (benefit) | — | — | (474 | ) | ||||||||
State deferred income tax (benefit) | — | — | (89 | ) | ||||||||
Foreign deferred income tax (benefit) | 8 | (96 | ) | 56 | ||||||||
Provision for (benefit from) income taxes | $ | 581 | $ | (14 | ) | $ | 158 | |||||
The differences between the statutory tax rate and the effective tax rate, expressed as a percentage of loss before income taxes, were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory rate | 34 | % | 34 | % | 34 | % | ||||||
State statutory rate | 2.5 | % | 3.4 | % | 5.2 | % | ||||||
Foreign operations | (0.1 | )% | 1.4 | % | 0.1 | % | ||||||
Release of FIN 48 liability and interest | — | % | 0.7 | % | — | % | ||||||
R&D tax credits | 9.2 | % | 13.1 | % | 2.5 | % | ||||||
Release of valuation allowance related to EFAA acquisition | — | % | — | % | 2 | % | ||||||
Acquisition-related costs | — | % | — | % | 1.2 | % | ||||||
Other permanent items | (2.7 | )% | (4.5 | )% | 0.1 | % | ||||||
Tax true-up | (0.2 | )% | 1 | % | — | % | ||||||
Valuation allowance | (45.6 | )% | (49.0 | )% | (45.7 | )% | ||||||
Effective tax rate | (2.9 | )% | 0.1 | % | (0.6 | )% | ||||||
The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforwards | $ | 166,150 | $ | 168,431 | ||||||||
Tax credit carryforwards | 25,052 | 22,507 | ||||||||||
Depreciation and amortization | 1,275 | 2,996 | ||||||||||
Accruals and reserves | 13,810 | 11,479 | ||||||||||
Deferred revenue | 9,930 | 12,037 | ||||||||||
Stock-based compensation | 5,138 | 5,570 | ||||||||||
Other | 498 | 450 | ||||||||||
Gross deferred tax assets | 221,853 | 223,470 | ||||||||||
Valuation allowance | (212,703 | ) | (207,315 | ) | ||||||||
Net deferred tax assets | 9,150 | 16,155 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Intangible assets | (8,995 | ) | (15,988 | ) | ||||||||
Net deferred tax assets reflected in balance sheet | $ | 155 | $ | 167 | ||||||||
The Company classified the net deferred tax assets of $0.2 million and $0.2 million as of December 31, 2014 and 2013, as follows (in thousands): | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets, current | $ | 785 | $ | — | ||||||||
Deferred tax assets, long-term | 155 | 167 | ||||||||||
Deferred tax liabilities, long-term | (785 | ) | — | |||||||||
$ | 155 | $ | 167 | |||||||||
Management reviews the recognition of deferred tax assets to determine if realization of such assets is more likely than not. The realization of the Company’s deferred tax assets is dependent upon future earnings. The Company has been in a cumulative loss position since inception, which represents a significant piece of negative evidence. Using the more likely than not criteria specified in the applicable accounting guidance, this negative evidence cannot be overcome by positive evidence currently available to the Company and as a result the Company has established a full valuation allowance against its deferred tax assets with the exception of certain foreign deferred tax assets. The Company’s valuation allowance increased by $5.4 million in 2014 and decreased by $0.1 million in 2013. As of December 31, 2014 and 2013, respectively, the valuation allowance included $0.1 million related to excess tax benefits of stock option deductions prior to the adoption of ASC Topic 718. The benefits will increase additional paid-in capital when realized. | ||||||||||||
As of December 31, 2014, the Company had U.S. federal and state net operating losses of approximately $549.1 million and $119.1 million, respectively. The U.S. federal net operation loss carryforwards will expire at various dates beginning in 2019 and through 2033 if not utilized. The state net operation loss carryforwards will expire at various dates beginning in 2015 and through 2033, if not utilized. As of December 31, 2014 and 2013, the Company had $37.6 million and $37.2 million in federal deductions, respectively, and $34.0 million and $34.0 million in state deductions, respectively, related to excess tax benefits from stock options which are not included in the net operation loss carryforward amounts in the table above since they have not met the realization criteria of ASC Topic 718. The tax benefits from these deductions will increase additional paid-in capital when realized. Additionally, the Company has U.S. federal, California and other various U.S. states research and development credits of approximately $20.1 million, $23.6 million and $2.1 million as of December 31, 2014, respectively. The U.S. federal research and development credits will begin to expire in 2020 and through 2034, and the California research and development credits have no expiration date. The credits related to other various U.S. states will begin to expire in 2015 and through 2029. During 2014, the Company engaged a third party service provider to perform an Internal Revenue Code Section 382 study (and similar state provisions) through December 31, 2014, which results are anticipated to have no further adjustments or limitations to the Company’s net operation loss carryforwards. | ||||||||||||
On December 19, 2014, the President signed into law The Tax Increase Prevention Act of 2014, which retroactively extends more than 50 expired tax provisions through 2014. Among the extended provisions is the Sec. 41 research credit for qualified research expenditures incurred through the end of 2014. The benefit of the reinstated credit did not impact the income statement in the period of enactment, which was the fourth quarter of 2014, as the research and development credit carryforwards are offset by a full valuation allowance. | ||||||||||||
The Company recognizes deferred tax liabilities associated with outside basis differences on investments in foreign subsidiaries, unless the difference is considered essentially permanent in duration. Thus, the Company has not recorded deferred taxes on approximately $2.2 million of undistributed earnings, as they are intended to be permanently reinvested. As of December 31 2014, the determination of the unrecorded deferred tax liability related to these earnings is not practicable. If circumstances change and it becomes apparent that some or all of the undistributed earnings will not be invested indefinitely, or will be remitted in the foreseeable future, an additional deferred tax liability will be recorded for some or all of the outside basis difference. | ||||||||||||
Uncertain Tax Positions | ||||||||||||
ASC Topic 740, “Income Taxes,” prescribes a recognition threshold and measurement attribute to the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance also provides guidance on derecognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions. The standard requires the Company to recognize the financial statement effects of an uncertain tax position when it is more likely than not that such position will be sustained upon audit. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as interest expense and income tax expense, respectively, in statements of operations. | ||||||||||||
The following table reconciles the Company's unrecognized tax benefits for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Balance at beginning of period | $ | 14,382 | $ | 13,238 | ||||||||
Additions for tax positions related to prior year | 76 | 317 | ||||||||||
Reductions for tax positions related to prior year | — | (48 | ) | |||||||||
Additions for tax positions related to current year | 963 | 990 | ||||||||||
Reductions from a lapse of applicable statute of limitations | — | (115 | ) | |||||||||
Balance at end of period | $ | 15,421 | $ | 14,382 | ||||||||
As of December 31, 2014 and 2013, the Company had unrecognized tax benefits of $15.4 million and $14.4 million, respectively, none of which would affect the Company's effective tax rate if recognized. There were no accrued interest or penalties for uncertain income tax as of December 31, 2014. | ||||||||||||
The Company files tax returns in the United State and various state jurisdictions, the United Kingdom and China. The tax years 1999 through 2014 remain open and subject to examination by the appropriate governmental agencies in the U.S. due to tax attribute carryforwards. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Information | Segment Information | ||||||||||||
The Company develops, markets and sells communications access systems and software, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the Company unit level. Accordingly, the Company is considered to be in a single reporting segment and operating unit structure. The Company’s chief operating decision maker is the Company’s Chief Executive Officer, who reviews financial information presented on a Company-wide basis, accompanied by disaggregated information about revenues by geographic region for purposes of allocating resources and evaluating financial performance. | |||||||||||||
Geographic Information: | |||||||||||||
The following is a summary of revenues by geographic region based upon the location of the customers (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 352,458 | $ | 333,403 | $ | 306,003 | |||||||
Caribbean | 18,725 | 17,466 | 9,343 | ||||||||||
Europe | 5,948 | 17,397 | 268 | ||||||||||
Canada | 9,995 | 10,231 | 10,894 | ||||||||||
Other | 14,101 | 4,121 | 3,710 | ||||||||||
Total | $ | 401,227 | $ | 382,618 | $ | 330,218 | |||||||
The Company's property and equipment, net of accumulated depreciation, are located in the following geographical areas (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 17,852 | $ | 14,969 | $ | 18,390 | |||||||
China | 2,292 | 2,504 | 2,693 | ||||||||||
Total | $ | 20,144 | $ | 17,473 | $ | 21,083 | |||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data - Unaudited | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data - Unaudited | Quarterly Financial Data—Unaudited | ||||||||||||||||
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 one fewer day in the first quarter of 2014 and one more day in the fourth quarter of 2014 than in the respective 2013 periods. | |||||||||||||||||
The following table presents selected unaudited quarterly financial data of the Company (in thousands, except per share data). The Company’s quarterly results of operations for these periods are not necessarily indicative of future results of operations. | |||||||||||||||||
Fiscal Year 2014 Quarter Ended | |||||||||||||||||
29-Mar | 28-Jun | 27-Sep | 31-Dec | ||||||||||||||
Revenue | $ | 85,820 | $ | 98,005 | $ | 105,769 | $ | 111,633 | |||||||||
Gross profit | 36,926 | 44,342 | 45,080 | 51,441 | |||||||||||||
Operating loss | (9,897 | ) | (3,890 | ) | (3,744 | ) | (2,853 | ) | |||||||||
Net loss | (10,027 | ) | (3,951 | ) | (3,848 | ) | (2,988 | ) | |||||||||
Net loss per common share, basic | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.06 | ) | |||||
Net loss per common share, diluted | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.06 | ) | |||||
Fiscal Year 2013 Quarter Ended | |||||||||||||||||
30-Mar | 29-Jun | 28-Sep | December 31 (1) | ||||||||||||||
Revenue | $ | 90,548 | $ | 94,439 | $ | 103,628 | $ | 94,003 | |||||||||
Gross profit | 41,115 | 42,505 | 47,407 | 40,047 | |||||||||||||
Operating loss | (5,540 | ) | (4,845 | ) | (12 | ) | (8,056 | ) | |||||||||
Net income (loss) | (6,203 | ) | (5,153 | ) | 544 | (6,453 | ) | ||||||||||
Net income (loss) per common share, basic | $ | (0.13 | ) | $ | (0.10 | ) | $ | 0.01 | $ | (0.13 | ) | ||||||
Net income (loss) per common share, diluted | $ | (0.13 | ) | $ | (0.10 | ) | $ | 0.01 | $ | (0.13 | ) | ||||||
(1) For the fourth quarter of 2013, net loss included $1.7 million of gain from utilization of inventory credit from Ericsson. See Note 2, "Business Combinations" of these Notes to the Consolidated Financial Statements for details of the Ericsson Credit. |
Schedule_II_Valuation_and_Qual
Schedule II. Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule II. Valuation and Qualifying Accounts | Schedule II. Valuation and Qualifying Accounts | ||||||||||||||||
Additions | |||||||||||||||||
Charged to | |||||||||||||||||
Balance | Costs or | Deductions | |||||||||||||||
At Beginning | Expenses or | and Write | Balance At | ||||||||||||||
of Year | Revenue | Offs | End of Year | ||||||||||||||
(In thousands) | |||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Allowance for doubtful accounts | $ | 358 | $ | 154 | $ | (271 | ) | $ | 241 | ||||||||
Product return reserve | 764 | 4,805 | (5,061 | ) | 508 | ||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 421 | $ | (13 | ) | $ | (50 | ) | $ | 358 | |||||||
Product return reserve | 1,740 | 3,535 | (4,511 | ) | 764 | ||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 402 | $ | 112 | $ | (93 | ) | $ | 421 | ||||||||
Product return reserve | 835 | 5,474 | (4,569 | ) | 1,740 | ||||||||||||
Description_of_Business_and_Si1
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Company | 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 global provider 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 | Basis of Presentation | ||||||||||
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. | |||||||||||
The accompanying 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”). In the opinion of management, the consolidated 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. | |||||||||||
Applicable Accounting Guidance | Applicable Accounting Guidance | ||||||||||
Any reference in these notes to applicable accounting guidance (“guidance”) is meant to refer to the authoritative U.S. generally accepted accounting principles ("GAAP") as found in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). | |||||||||||
Use of Estimates | Use of Estimates | ||||||||||
The preparation of financial statements is in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. For the Company, these estimates include, but are not limited to: allowances for doubtful accounts and sales returns, excess and obsolete inventory, allowances for obligations to its contract manufacturers, valuation of stock-based compensation, useful lives assigned to long-lived assets and acquired intangible assets, warranty costs, and contingencies. Actual results could differ from those estimates, and such differences could be material to the Company's financial position and results of operations. | |||||||||||
Business Combination | Business Combination | ||||||||||
The Company accounted for its business acquisitions under ASC Topic 805, “Business Combinations” ("ASC Topic 805"). Under this guidance all of the assets acquired and liabilities assumed are recognized at their fair value as of the acquisition date. The excess of the purchase price over the estimated fair values of the net tangible and intangible assets acquired is recorded as goodwill. If a business combination results in a bargain purchase for the Company, the economic gain resulting from the fair value received being greater than the purchase price is recorded as a gain that is included in other income (expense), net in the Consolidated Statements of Comprehensive Loss. Prior to recognizing the gain, the Company reassesses whether it has correctly identified all of the assets acquired and liabilities assumed and recognizes any additional assets or liabilities that result from that review. The Company also reviews the measurement procedures used in valuing the assets acquired and liabilities assumed. | |||||||||||
While the Company uses its best estimates and assumptions as a part of calculating the fair value at the acquisition date, the Company's estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which maybe up to one year from the acquisition date, the Company may record adjustments retrospectively to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill, or records a corresponding other income or expense in the case of a bargain purchase. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company's Consolidated Statements of Comprehensive Loss. | |||||||||||
Transaction costs associated with the business combinations are expensed as incurred, and are included in acquisition-related expenses within operating expenses in the Consolidated Statements of Comprehensive Loss. | |||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||
The Company derives revenue primarily from the sale of hardware products and related software. Revenue is recognized when all of the following criteria have been met: | |||||||||||
• | Persuasive evidence of an arrangement exists. The Company generally relies upon sales agreements and customer purchase orders as evidence of an arrangement. | ||||||||||
• | Delivery has occurred. The Company uses the shipping terms of the arrangement or evidence of customer acceptance to verify delivery or performance. | ||||||||||
• | Sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment. Payment terms to customers can range from net 30 to net 120 days. | ||||||||||
• | Collectability is reasonably assured. The Company assesses collectability based primarily on creditworthiness of customers and their payment histories. | ||||||||||
Revenue from installation and training services are recognized as the services are completed. Post-sales software support revenue and extended warranty services revenue are deferred and recognized ratably over the period during which the services are to be performed. To date, service revenue has comprised an insignificant portion of the Company's revenue and the Company has not reported service revenue separately from product revenue in its financial statements. In instances where substantive acceptance provisions are specified in the customer agreement, revenue is deferred until all acceptance criteria have been met. From time to time, the Company offers customers sales incentives, which include volume rebates and discounts. These amounts are estimated on a quarterly basis and recorded as a reduction of revenue. | |||||||||||
The Company enters into arrangements with certain of its customers who receive government supported loans and grants from the U.S. Department of Agriculture's Rural Utility Service (“RUS”) to finance capital spending. Under the terms of an RUS equipment contract that includes installation services, the customer does not take possession and control and title does not pass until formal acceptance is obtained from the customer. Under this type of arrangement, the Company does not recognize revenue until it has received formal acceptance from the customer. For RUS arrangements that do not involve installation services, the Company recognizes revenue in accordance with the revenue recognition policy described above. | |||||||||||
The Company's products contain both software and non-software components that function together to deliver the products' essential functionality. When the Company enters into sales arrangements that consist of multiple deliverables of its product and service offerings, the Company allocates the total consideration of the arrangement to each separable deliverable based on its relative selling price. The Company limits the amount allocable to delivered elements to the amount that is not contingent upon the delivery of additional items or meeting specified performance conditions, and recognizes revenue on each deliverable in accordance with its revenue recognition policy. The determination of selling price for each deliverable is based on a selling price hierarchy, which is vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“TPE”) if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE nor TPE is available. VSOE of selling price is based on the price charged when the element is sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices of an element fall within a narrow range when each element is sold separately. The Company has established VSOE for its training and post-sales software support services based on the normal pricing practices of these services when sold separately. TPE of selling price is established by evaluating whether there are similar competitor products or services that are sold in stand-alone sales transaction to similarly situated customers. Generally, the Company's marketing strategy differs from that of its peers and its offerings contain a significant level of customization and differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Additionally, as the Company is unable to reliably determine what similar competitor products' selling prices are on a stand-alone basis, it is not typically able to determine TPE. ESP is established considering multiple factors including, but not limited to geographies market conditions, competitive landscape, internal costs, gross margin objectives, characteristics of targeted customers and pricing practices. The determination of ESP is made through consultation with and formal approval by management, taking into consideration the go-to-market strategy. | |||||||||||
Cost of Revenue | Cost of Revenue | ||||||||||
Cost of revenue consists primarily of finished goods inventory purchased from the Company’s contract manufacturers, payroll and related expenses associated with managing the relationships with contract manufacturers, depreciation of manufacturing test equipment, warranty costs, excess and obsolete inventory costs, shipping charges, and amortization of certain intangible assets. | |||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||
In accordance with ASC Topic 718, "Compensation - Stock Compensation" ("ASC Topic 718"), stock-based awards are recorded at fair value as of the grant date and recognized to expense over the employee’s requisite service period (generally the vesting period), which the Company has elected to amortize on a straight-line basis. Stock-based compensation expense is reduced by the Company’s estimated forfeitures on all unvested awards. | |||||||||||
The fair value of stock option and employee stock purchase right is estimated at the grant date using the Black-Scholes option valuation model. The fair value of restricted stock unit and restricted stock award is based on the closing market price of the Company's common stock on the date of grant. The fair value of performance restricted stock unit ("PRSU") with a market condition is estimated on the date of grant, using a Monte Carlo simulation model to estimate the total return ranking 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. | |||||||||||
Warranty | Warranty | ||||||||||
The Company offers limited warranties for its hardware products for a period of one or five years, depending on the product type. Warranty service revenues are deferred and recognized ratably over the period during which the services are to be performed. The Company recognizes estimated costs related to warranty activities as a component of cost of revenue upon product shipment. The estimates are based on historical product failure rates and historical costs incurred in correcting product failures. The recorded amount is adjusted from time to time for specifically identified warranty exposure. Actual warranty expenses are charged against the Company’s estimated warranty liability when incurred. Factors that affect the Company’s warranty liability include the number of installed units and historical and anticipated rates of warranty claims and cost per claim. | |||||||||||
Research and Development | Research and Development | ||||||||||
Research and development costs include costs of developing new products and processes, as well as design and engineering costs. Such costs are charged to research and development expense as incurred. | |||||||||||
Development costs related to software incorporated in the Company’s products incurred subsequent to the establishment of technological feasibility are capitalized and amortized over the estimated useful lives of the related products. Technological feasibility is established upon completion of a working model. | |||||||||||
Credit Risk and Inventory Supplier Concentrations | Credit Risk and Inventory Supplier Concentrations | ||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash equivalents consist of money market funds, which are invested through financial institutions in the United States. Deposits in these financial institutions may, at times, exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company also has approximately $3.8 million of cash held by its foreign subsidiaries in China and the United Kingdom. Management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to these cash and cash equivalents. | |||||||||||
Concentrations of credit risk in relation to customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated. | |||||||||||
Percentage of Accounts Receivable | Percentage of Revenue | ||||||||||
At December 31, | Years Ended December 31, | ||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | |||||||
CenturyLink | * | 15% | 23% | 26% | 21% | ||||||
Ericsson (1) | * | 12% | * | * | * | ||||||
(1) Includes certain of Ericsson's consolidated subsidiaries. | |||||||||||
* Less than 10% of total accounts receivable or revenue. | |||||||||||
The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company records a specific allowance based on an analysis of individual past-due balances. Additionally, based on its historical write-offs and collections experience, the Company records an additional allowance based on a percentage of outstanding receivables. The Company performs credit evaluations of its customers’ financial condition. These evaluations require significant judgment and are based on a variety of factors including, but not limited to, current economic trends, payment history and financial review of the customer. Actual collection losses may differ from management’s estimates, and such differences could be material to the Company’s financial position and results of operations. | |||||||||||
The Company depends primarily on a small number of outside contract manufacturers for the bulk of its finished goods inventory. In particular, the Company relies on Flextronics for the manufacture of most of its products. The Company generally purchases its products through purchase orders with its suppliers or contract manufacturers. While the Company seeks to maintain a sufficient reserve of its products, the Company’s business and results of operations could be adversely affected by a stoppage or delay in receiving such products, the receipt of defective parts, an increase in price of such products or the Company’s inability to obtain lower prices from its contract manufacturers and suppliers in response to competitive pressures. | |||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||
The carrying amounts of cash and cash equivalents, marketable securities, trade receivables, accounts payable, and other accrued liabilities approximate their fair value due to their relatively short-term nature. | |||||||||||
Cash, Cash Equivalents, and Marketable Securities | Cash, Cash Equivalents, and Marketable Securities | ||||||||||
The Company has invested its excess cash primarily in money market funds and highly liquid marketable securities such as corporate debt instruments and commercial paper. The Company considers all investments with maturities of three months or less when purchased to be cash equivalents. Marketable securities represent highly liquid corporate debt instruments and commercial paper with maturities greater than 90 days at date of purchase. Marketable securities with maturities greater than one year are classified as current because management considers all marketable securities to be available for current operations. | |||||||||||
Cash equivalents and marketable securities are stated at amounts that approximate fair value based on quoted market prices. | |||||||||||
The Company’s investments have been classified and accounted for as available-for-sale. Such investments are recorded at fair value and unrealized holding gains and losses are reported as a separate component of comprehensive loss in the stockholders’ equity until realized. Realized gains and losses on sales of marketable securities, if any, are determined on the specific identification method and are reclassified from accumulated other comprehensive income to results of operations as other income (expense). | |||||||||||
Restricted Cash | Restricted Cash | ||||||||||
As of each of December 31, 2014 and 2013, the Company had $0.3 million cash restricted for collateralizing the outstanding letters of credit with Silicon Valley Bank. | |||||||||||
Inventory | Inventory | ||||||||||
Inventory, which primarily consisted of finished goods purchased from contract manufacturers, is stated at the lower of cost, determined by the first-in, first-out method, or market value. Inbound shipping costs are included in cost of inventory. In addition, the Company, from time to time, procures component inventory primarily as a result of manufacturing discontinuation of critical components by suppliers. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based on the Company’s estimate of demand for its products, potential obsolescence of technology, product life cycles, and whether pricing trends or forecasts indicate that the carrying value of inventory exceeds its estimated selling price. These factors are impacted by market and economic conditions, technology changes, and new product introductions and require estimates that may include elements that are uncertain. Actual demand may differ from forecasted demand and may have a material effect on gross margins. If inventory is written down, a new cost basis is established that cannot be increased in future periods. Shipments from our suppliers or contract manufacturers before the Company receives them are recorded as in-transit inventory when title and the significant risks and rewards of ownership have passed to the Company. | |||||||||||
Deferred Cost of Revenue | Deferred Cost of Revenue | ||||||||||
When the Company’s products have been shipped, but the product revenue associated with the arrangement has been deferred as a result of not meeting the criteria for immediate revenue recognition, the Company also defers the related inventory costs for the delivered items until all criteria are met for revenue recognition. Deferred cost of revenue also includes installation service costs related to customer installation projects in which the revenue has been deferred until completion of the project and, to a lesser extent, trial orders that are pending acceptance. | |||||||||||
Property and Equipment | Property and Equipment | ||||||||||
Property and equipment are stated at cost, less accumulated depreciation, and are depreciated using the straight-line method over the estimated useful life of each asset. Computer equipment is depreciated over two years; purchased software is depreciated over three years; test equipment is depreciated over three years; furniture and fixtures are depreciated over seven years; and leasehold improvements are depreciated over the shorter of the respective lease term or the estimated useful life of the asset. Maintenance and repairs are charged to expense as incurred. | |||||||||||
Goodwill | Goodwill | ||||||||||
The Company records goodwill when consideration paid in a business acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. 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. The Company evaluates goodwill on an annual basis as of the end of the second quarter of each fiscal year. Management has determined that it operates as a single reporting unit and, therefore, evaluates goodwill impairment at the enterprise level. | |||||||||||
In an annual impairment test, the Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In assessing the qualitative factors, management considers 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. If the Company determines as a result of the qualitative assessment that it is more likely than not (that is, a likelihood of more than 50 percent) 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. | |||||||||||
In a quantitative test, the Company compares its fair value to its carrying value including goodwill. The Company determines its fair value using both an income approach and a market approach. Under the income approach, the Company determines fair value based on estimated future cash flows, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the Company and the rate of return an outside investor would expect to earn. Under the market-based approach, the Company utilizes information regarding the Company as well as publicly available industry information to determine earnings multiples that are used to value the Company. If the carrying value of the Company exceeds its fair value, the Company will determine the amount of impairment loss by comparing the implied fair value of goodwill with the carrying value of goodwill. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. | |||||||||||
At the end of the second quarter of 2014, the Company has completed its annual goodwill impairment test. Based on its assessment of the above qualitative factors, management concluded that the fair value of the Company was more likely than not greater than its carrying amount as of June 28, 2014. As such, it was not necessary to perform the two-step quantitative goodwill impairment test at the time. Subsequent to the 2014 annual impairment test, there have been no significant events or circumstances affecting the valuation of goodwill. As of December 31, 2014, there was no impairment to the carrying value of the Company's goodwill. There were no impairment losses for goodwill during 2013 and 2012. | |||||||||||
Intangible Assets and Other Long-Lived Assets | Intangible Assets and Other Long-Lived Assets | ||||||||||
Intangible assets with finite useful lives are amortized over their estimated useful life, generally five years. The Company periodically evaluates long-lived assets, including intangible assets, for impairment whenever events or changes in circumstances indicate that a potential impairment may have occurred. If such events or changes in circumstances arise, the Company compares the carrying amount of the long-lived assets to the estimated future undiscounted cash flows expected to be generated by the long-lived assets. If the estimated aggregate undiscounted cash flows are less than the carrying amount of the long-lived assets, an impairment charge, calculated as the amount by which the carrying amount of the assets exceeds the fair value of the assets, is recorded. The fair value of long-lived assets is determined based on the estimated discounted cash flows expected to be generated from the assets. The Company has reviewed events and changes to its business during the year and has determined that there was no impairment to its intangible assets and other long-lived assets during 2014. The Company did not incur any impairment losses for intangible assets and other long-lived assets during 2013 and 2012. | |||||||||||
Income Taxes | Income Taxes | ||||||||||
The Company evaluates its tax positions and estimates its current tax exposure along with assessing temporary differences that result from different book to tax treatment of items not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities on the Company’s balance sheets, which are estimated based upon the difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates that will be in effect when these differences reverse. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in the Company’s statements of operations become deductible expenses under applicable income tax laws or loss or credit carryforwards are utilized. Accordingly, realization of the Company’s deferred tax assets is dependent on future taxable income against which these deductions, losses and credits can be utilized. | |||||||||||
The Company must assess the likelihood that the Company’s deferred tax assets will be recovered from future taxable income, and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance. Management judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and any valuation allowance recorded against the Company’s net deferred tax assets. Excluding our foreign operations, the Company recorded a full valuation allowance at each balance sheet date presented because, based on the available evidence, the Company believes it is more likely than not that it will not be able to utilize all of its deferred tax assets in the future. The Company intends to maintain the full valuation allowances until sufficient evidence exists to support the reversal of the valuation allowances. | |||||||||||
Foreign Currency Translation | Foreign Currency Translation | ||||||||||
Assets and liabilities of the Company’s wholly owned foreign subsidiaries are translated from their respective functional currencies at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the monthly average exchanges rates. Any material resulting translation adjustments are reflected as a separate component of stockholders’ equity. Realized foreign currency transaction gains and losses were not significant during the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which provides guidance for revenue recognition. ASU 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. Additionally, it supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the previous guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard will be effective for the Company in the first quarter of fiscal 2017. Early adoption is not permitted. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |||||||||||
In July 2013, the 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 explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. Under the new standard, the Company’s unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The accounting standard update became effective for the Company in the first quarter of 2014. As the Company’s disclosures already conform to the required presentation, adoption of this standard did not impact the financial position or results of operations of the Company. |
Description_of_Business_and_Si2
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Schedule of Customer Concentration Risk | Concentrations of credit risk in relation to customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated. | ||||||||||
Percentage of Accounts Receivable | Percentage of Revenue | ||||||||||
At December 31, | Years Ended December 31, | ||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | |||||||
CenturyLink | * | 15% | 23% | 26% | 21% | ||||||
Ericsson (1) | * | 12% | * | * | * | ||||||
(1) Includes certain of Ericsson's consolidated subsidiaries. | |||||||||||
* Less than 10% of total accounts receivable or revenue. |
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Assets Acquired and Liabilities Assumed | The Company finalized the fair values of the acquired assets and assumed liabilities from Ericsson, as summarized in the following table (in thousands), and closed the measurement period in 2013. | |||
At November 2, 2012 | ||||
Inventory | $ | 9,361 | ||
Other current asset | 739 | |||
Property and equipment | 3,616 | |||
Other current liabilities | (124 | ) | ||
Deferred tax liability | (563 | ) | ||
Net assets acquired | 13,029 | |||
Gain on bargain purchase | (1,029 | ) | ||
Total purchase price | $ | 12,000 | ||
Cash_Cash_Equivalents_and_Mark1
Cash, Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||
Summary of cash and cash equivalents | Cash, cash equivalents and marketable securities consisted of the following (in thousands): | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 17,866 | $ | 62,905 | |||||||||||||
Money market funds | 30,963 | 19,842 | |||||||||||||||
Total cash and cash equivalents | 48,829 | 82,747 | |||||||||||||||
Marketable securities: | |||||||||||||||||
Corporate debt securities | 61,050 | — | |||||||||||||||
Commercial paper | 1,800 | — | |||||||||||||||
Total marketable securities | 62,850 | — | |||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 111,679 | $ | 82,747 | |||||||||||||
Amortized cost and fair value of marketable securities | The amortized cost and fair value of marketable securities as of December 31, 2014 were as follows (in thousands): | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||
Corporate debt securities | $ | 61,108 | $ | 1 | $ | (59 | ) | $ | 61,050 | ||||||||
Commercial paper | 1,800 | — | $ | — | 1,800 | ||||||||||||
Total marketable securities | $ | 62,908 | $ | 1 | $ | (59 | ) | $ | 62,850 | ||||||||
Amortized cost and fair value of marketable securities by contractual maturity | As of December 31, 2014, the amortized cost and fair value of marketable securities by contractual maturity were as follows (in thousands): | ||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||
Due in 1 year or less | $ | 59,835 | $ | 59,776 | |||||||||||||
Due in 1-2 years | 3,073 | 3,074 | |||||||||||||||
Total marketable securities | $ | 62,908 | $ | 62,850 | |||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Summary of intangible assets | The details of intangible assets as of December 31, 2014 and 2013 are disclosed in the following table (in thousands): | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Core developed technology | $ | 68,964 | $ | (55,694 | ) | $ | 13,270 | $ | 68,964 | $ | (47,339 | ) | $ | 21,625 | |||||||||||
Customer relationships | 54,740 | (42,831 | ) | 11,909 | 54,740 | (32,625 | ) | 22,115 | |||||||||||||||||
Total intangible assets, excluding goodwill | $ | 123,704 | $ | (98,525 | ) | $ | 25,179 | $ | 123,704 | $ | (79,964 | ) | $ | 43,740 | |||||||||||
Summary of expected future amortization | Expected future amortization expense for the fiscal years indicated is as follows (in thousands): | ||||||||||||||||||||||||
Period | Expected Amortization Expense | ||||||||||||||||||||||||
2015 | $ | 18,561 | |||||||||||||||||||||||
2016 | 5,805 | ||||||||||||||||||||||||
2017 | 813 | ||||||||||||||||||||||||
Total | $ | 25,179 | |||||||||||||||||||||||
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Accounts Receivable, net, Details | Accounts receivable, net consisted of the following (in thousands): | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 31,493 | $ | 44,642 | |||||
Allowance for doubtful accounts | (241 | ) | (358 | ) | |||||
Product return reserve | (508 | ) | (764 | ) | |||||
Accounts receivable, net | $ | 30,744 | $ | 43,520 | |||||
Inventory Details | Inventory consisted of the following (in thousands): | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 3,180 | $ | 6,591 | |||||
Finished goods | 43,573 | 44,480 | |||||||
Total inventory | $ | 46,753 | $ | 51,071 | |||||
Property and Equipment, net, Details | Property and equipment, net consisted of the following (in thousands): | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Test equipment | $ | 40,766 | $ | 36,932 | |||||
Computer equipment and purchased software | 30,355 | 27,280 | |||||||
Furniture and fixtures | 1,852 | 1,614 | |||||||
Leasehold improvements | 6,550 | 7,077 | |||||||
Total | 79,523 | 72,903 | |||||||
Accumulated depreciation and amortization | (59,379 | ) | (55,430 | ) | |||||
Property and equipment, net | $ | 20,144 | $ | 17,473 | |||||
Accrued Liabilities Details | Accrued liabilities consisted of the following (in thousands): | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued compensation and related benefits | $ | 15,782 | $ | 13,127 | |||||
Accrued warranty | 9,553 | 10,856 | |||||||
Accrued professional and consulting fees | 5,860 | 1,634 | |||||||
Accrued business travel expenses | 1,414 | 540 | |||||||
Accrued excess and obsolete inventory at contract manufacturers | 888 | 756 | |||||||
Accrued customer rebates | 851 | 712 | |||||||
Accrued rent reserve | 412 | 341 | |||||||
Sales and use tax payable | 397 | 521 | |||||||
Accrued freight | 303 | 612 | |||||||
Income taxes payable | 269 | 368 | |||||||
Accrued other | 3,714 | 2,608 | |||||||
Total accrued liabilities | $ | 39,443 | $ | 32,075 | |||||
Deferred Revenue Details | Deferred revenue consisted of the following (in thousands): | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred Revenue: | |||||||||
Product and services - current | $ | 9,753 | $ | 32,051 | |||||
Extended warranty - current | 2,969 | 2,811 | |||||||
Extended warranty - non-current | 19,211 | 18,335 | |||||||
Product and services - non-current | 182 | 96 | |||||||
Total deferred revenue | $ | 32,115 | $ | 53,293 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum payments under the non-cancelable operating leases consisted of the following as of December 31, 2014 (in thousands): | ||||||||||||
Period | Minimum Future Lease Payments | ||||||||||||
2015 | $ | 3,193 | |||||||||||
2016 | 2,658 | ||||||||||||
2017 | 2,594 | ||||||||||||
2018 | 2,325 | ||||||||||||
2019 | 579 | ||||||||||||
Thereafter | 470 | ||||||||||||
Total | $ | 11,819 | |||||||||||
Product warranty activities [Roll Forward] | Changes in the Company’s warranty reserve in the periods as indicated were as follows (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 10,856 | $ | 11,762 | $ | 12,104 | |||||||
Warranty charged to cost of revenue | 3,394 | 4,350 | 4,701 | ||||||||||
Utilization of warranty | (4,697 | ) | (5,256 | ) | (5,043 | ) | |||||||
Balance at end of period | $ | 9,553 | $ | 10,856 | $ | 11,762 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 as of December 31, 2014 and December 31, 2013, based on the three-tier fair value hierarchy (in thousands): | ||||||||||||
As of December 31, 2014 | Level 1 | Level 2 | Total | ||||||||||
Money market funds | $ | 30,963 | $ | — | $ | 30,963 | |||||||
Corporate debt securities | — | 61,050 | 61,050 | ||||||||||
Commercial paper | — | 1,800 | 1,800 | ||||||||||
Total | $ | 30,963 | $ | 62,850 | $ | 93,813 | |||||||
As of December 31, 2013 | Level 1 | Level 2 | Total | ||||||||||
Money market funds | $ | 19,842 | $ | — | $ | 19,842 | |||||||
Corporate debt securities | — | — | — | ||||||||||
Commercial paper | — | — | — | ||||||||||
Total | $ | 19,842 | $ | — | $ | 19,842 | |||||||
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of net loss per share | The following table sets forth the computation of basic and diluted net loss per share for the periods indicated (in thousands, except per share data): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator: | ||||||||||||
Net loss | $ | (20,814 | ) | $ | (17,265 | ) | $ | (28,326 | ) | |||
Denominator: | ||||||||||||
Weighted-average common shares outstanding | 50,808 | 49,419 | 48,180 | |||||||||
Basic and diluted net loss per common share | $ | (0.41 | ) | $ | (0.35 | ) | $ | (0.59 | ) | |||
Potentially dilutive shares, weighted-average | 5,020 | 5,308 | 4,454 | |||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||
Schedule of Stock Options Activity | The following table summarizes the activity of stock options under the Company’s equity incentive plans (in thousands, except per share data): | ||||||||||||||||||||
Weighted- | Weighted-Average | ||||||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||||||
Number of | Exercise Price | Contractual Life | Intrinsic | ||||||||||||||||||
Stock Options | Shares | Per Share | (in years) | Value (1) | |||||||||||||||||
Outstanding as of December 31, 2013 | 2,560 | $ | 12.96 | ||||||||||||||||||
Granted | 1,880 | 9.29 | |||||||||||||||||||
Exercised | (224 | ) | 7.44 | ||||||||||||||||||
Forfeited | (258 | ) | 9.21 | ||||||||||||||||||
Expired | (257 | ) | 17.44 | ||||||||||||||||||
Outstanding as of December 31, 2014 | 3,701 | $ | 11.38 | 7.9 | $ | 3,291 | |||||||||||||||
Vested and expected to vest as of December 31, 2014 | 3,610 | $ | 11.43 | 7.9 | $ | 3,218 | |||||||||||||||
Options exercisable as of December 31, 2014 | 1,474 | $ | 14.34 | 5.8 | $ | 1,377 | |||||||||||||||
(1) Amounts represent the difference between the exercise price and the fair market value of common stock at December 31, 2014 for all in the money options outstanding. | |||||||||||||||||||||
Schedule of Restricted Stock and Restricted Stock Units Activity | The following table summarizes the activities of the Company's RSUs, PRSUs, and RSAs under the Company’s equity incentive plans (in thousands, except per share data): | ||||||||||||||||||||
RSUs | PRSUs | RSAs | |||||||||||||||||||
Weighted-Average | Weighted-Average | Weighted-Average | |||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||
Number of | Fair Value | Number of | Fair Value | Number of | Fair Value | ||||||||||||||||
Shares | Per Share | Shares | Per Share | Shares | Per Share | ||||||||||||||||
Outstanding at December 31, 2013 | 1,506 | $ | 11.04 | 413 | $ | 12.81 | 189 | $ | 21.67 | ||||||||||||
Granted | 987 | 8.72 | 174 | 9.16 | — | — | |||||||||||||||
Vested | (661 | ) | 11.68 | (168 | ) | 14.61 | (117 | ) | 21.67 | ||||||||||||
Canceled | (98 | ) | 10.07 | (57 | ) | 10.8 | (10 | ) | 21.67 | ||||||||||||
Outstanding at December 31, 2014 | 1,734 | $ | 9.53 | 362 | $ | 10.53 | 62 | $ | 21.67 | ||||||||||||
Schedule of Grant Date Fair Values | The following table summarizes the weighted-average grant date fair values of the Company's stock-based awards granted in the periods indicated: | ||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Stock options | $ | 4.79 | $ | 4.89 | $ | 4.68 | |||||||||||||||
RSUs | $ | 8.72 | $ | 9.2 | $ | 6.55 | |||||||||||||||
PRSUs | $ | 9.16 | $ | 11.24 | $ | 14.81 | |||||||||||||||
RSAs | N/A | N/A | N/A | ||||||||||||||||||
ESPP | $ | 2.46 | $ | 2.94 | $ | 2.34 | |||||||||||||||
Valuation Assumptions, Stock Options | The following table summarizes the weighted-average assumptions used in estimating the grant-date fair value of stock options and of each employee’s purchase right under the 2010 ESPP in the periods indicated: | ||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
Stock Options | 2014 | 2013 | 2012 | ||||||||||||||||||
Expected volatility | 52 | % | 62 | % | 56 | % | |||||||||||||||
Expected life (years) | 6.21 | 6.05 | 6.25 | ||||||||||||||||||
Expected dividend yield | — | — | — | ||||||||||||||||||
Risk-free interest rate | 1.87 | % | 1.14 | % | 1.06 | % | |||||||||||||||
Valuation Assumptions, ESPP | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
ESPP | 2014 | 2013 | 2012 | ||||||||||||||||||
Expected volatility | 45 | % | 50 | % | 63 | % | |||||||||||||||
Expected life (years) | 0.5 | 0.5 | 0.5 | ||||||||||||||||||
Expected dividend yield | — | — | — | ||||||||||||||||||
Risk-free interest rate | 0.07 | % | 0.09 | % | 0.13 | % | |||||||||||||||
Schedule of Unrecognized Compensation Cost | As of December 31, 2014, unrecognized stock-based compensation expenses by award type, net of estimated forfeitures, and their expected weighted-average recognition periods are summarized in the following table (in thousands). | ||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Stock Option | RSU | PRSU | RSA | ESPP | |||||||||||||||||
Unrecognized stock-based compensation expense | $ | 5,145 | $ | 10,768 | $ | 848 | $ | 699 | $ | 692 | |||||||||||
Weighted-average amortization period (in years) | 2.6 | 2.4 | 1.2 | 0.6 | 0.4 | ||||||||||||||||
Schedule of Warrants | As of December 31, 2014, the following warrants to purchase common stock were outstanding (in thousands, except per share data): | ||||||||||||||||||||
Expiration Date | Exercise Price | Number of Warrants Outstanding | |||||||||||||||||||
Per Share | |||||||||||||||||||||
September 4, 2017 | $ | 19.56 | 15 | ||||||||||||||||||
Shares Reserved For Future Issuance | The Company had common shares reserved for future issuance as follows (in thousands): | ||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Stock options outstanding | 3,701 | 2,560 | 2,213 | ||||||||||||||||||
Restricted stock units outstanding | 1,734 | 1,506 | 1,762 | ||||||||||||||||||
Performance restricted stock units outstanding | 362 | 413 | 183 | ||||||||||||||||||
Shares available for future grant under 2010 Plan | 2,283 | 3,652 | 3,959 | ||||||||||||||||||
Shares available for future issuance under ESPP | 1,891 | 2,574 | 3,260 | ||||||||||||||||||
Common stock warrants | 15 | 23 | 23 | ||||||||||||||||||
Total | 9,986 | 10,728 | 11,400 | ||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below summarizes the changes in accumulated other comprehensive income (loss) by component for the periods indicated (in thousands). | |||||||||||
Year Ended December 31, 2014 | ||||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | ||||||||||
Balance at beginning of period | $ | — | $ | 190 | $ | 190 | ||||||
Other comprehensive loss before | ||||||||||||
reclassification adjustments | (57 | ) | (52 | ) | (109 | ) | ||||||
Reclassification adjustment for realized gains on | ||||||||||||
marketable securities included in net loss | (1 | ) | — | (1 | ) | |||||||
Other comprehensive loss | (58 | ) | (52 | ) | (110 | ) | ||||||
Balance at end of period | $ | (58 | ) | $ | 138 | $ | 80 | |||||
Year Ended December 31, 2013 | ||||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | ||||||||||
Balance at beginning of period | $ | — | $ | 132 | $ | 132 | ||||||
Other comprehensive income | — | 58 | 58 | |||||||||
Balance at end of period | $ | — | $ | 190 | $ | 190 | ||||||
Year Ended December 31, 2012 | ||||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | ||||||||||
Balance at beginning of period | $ | — | $ | 98 | $ | 98 | ||||||
Other comprehensive income | — | 34 | 34 | |||||||||
Balance at end of period | $ | — | $ | 132 | $ | 132 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of loss before provision for incomes taxes were as follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (21,495 | ) | $ | (18,500 | ) | $ | (28,987 | ) | |||
Foreign | 1,262 | 1,221 | 819 | |||||||||
Loss before provision for income taxes | $ | (20,233 | ) | $ | (17,279 | ) | $ | (28,168 | ) | |||
Schedule of Components of Income Tax Expense (Benefit) | Provision for (benefit from) income taxes consisted of the following for the periods indicated (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal current income tax (benefit) | $ | — | $ | (274 | ) | $ | 152 | |||||
State current income tax | 104 | 41 | 73 | |||||||||
Foreign current income tax | 469 | 315 | 440 | |||||||||
Federal deferred income tax (benefit) | — | — | (474 | ) | ||||||||
State deferred income tax (benefit) | — | — | (89 | ) | ||||||||
Foreign deferred income tax (benefit) | 8 | (96 | ) | 56 | ||||||||
Provision for (benefit from) income taxes | $ | 581 | $ | (14 | ) | $ | 158 | |||||
Schedule of Effective Income Tax Rate Reconciliation | The differences between the statutory tax rate and the effective tax rate, expressed as a percentage of loss before income taxes, were as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory rate | 34 | % | 34 | % | 34 | % | ||||||
State statutory rate | 2.5 | % | 3.4 | % | 5.2 | % | ||||||
Foreign operations | (0.1 | )% | 1.4 | % | 0.1 | % | ||||||
Release of FIN 48 liability and interest | — | % | 0.7 | % | — | % | ||||||
R&D tax credits | 9.2 | % | 13.1 | % | 2.5 | % | ||||||
Release of valuation allowance related to EFAA acquisition | — | % | — | % | 2 | % | ||||||
Acquisition-related costs | — | % | — | % | 1.2 | % | ||||||
Other permanent items | (2.7 | )% | (4.5 | )% | 0.1 | % | ||||||
Tax true-up | (0.2 | )% | 1 | % | — | % | ||||||
Valuation allowance | (45.6 | )% | (49.0 | )% | (45.7 | )% | ||||||
Effective tax rate | (2.9 | )% | 0.1 | % | (0.6 | )% | ||||||
Schedule of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): | |||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforwards | $ | 166,150 | $ | 168,431 | ||||||||
Tax credit carryforwards | 25,052 | 22,507 | ||||||||||
Depreciation and amortization | 1,275 | 2,996 | ||||||||||
Accruals and reserves | 13,810 | 11,479 | ||||||||||
Deferred revenue | 9,930 | 12,037 | ||||||||||
Stock-based compensation | 5,138 | 5,570 | ||||||||||
Other | 498 | 450 | ||||||||||
Gross deferred tax assets | 221,853 | 223,470 | ||||||||||
Valuation allowance | (212,703 | ) | (207,315 | ) | ||||||||
Net deferred tax assets | 9,150 | 16,155 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Intangible assets | (8,995 | ) | (15,988 | ) | ||||||||
Net deferred tax assets reflected in balance sheet | $ | 155 | $ | 167 | ||||||||
The Company classified the net deferred tax assets of $0.2 million and $0.2 million as of December 31, 2014 and 2013, as follows (in thousands): | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets, current | $ | 785 | $ | — | ||||||||
Deferred tax assets, long-term | 155 | 167 | ||||||||||
Deferred tax liabilities, long-term | (785 | ) | — | |||||||||
$ | 155 | $ | 167 | |||||||||
Unrecognized Tax Benefits Activity | The following table reconciles the Company's unrecognized tax benefits for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Balance at beginning of period | $ | 14,382 | $ | 13,238 | ||||||||
Additions for tax positions related to prior year | 76 | 317 | ||||||||||
Reductions for tax positions related to prior year | — | (48 | ) | |||||||||
Additions for tax positions related to current year | 963 | 990 | ||||||||||
Reductions from a lapse of applicable statute of limitations | — | (115 | ) | |||||||||
Balance at end of period | $ | 15,421 | $ | 14,382 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Revenue by Geographic Region | The following is a summary of revenues by geographic region based upon the location of the customers (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 352,458 | $ | 333,403 | $ | 306,003 | |||||||
Caribbean | 18,725 | 17,466 | 9,343 | ||||||||||
Europe | 5,948 | 17,397 | 268 | ||||||||||
Canada | 9,995 | 10,231 | 10,894 | ||||||||||
Other | 14,101 | 4,121 | 3,710 | ||||||||||
Total | $ | 401,227 | $ | 382,618 | $ | 330,218 | |||||||
Property and Equipment by Geographic Region | The Company's property and equipment, net of accumulated depreciation, are located in the following geographical areas (in thousands): | ||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 17,852 | $ | 14,969 | $ | 18,390 | |||||||
China | 2,292 | 2,504 | 2,693 | ||||||||||
Total | $ | 20,144 | $ | 17,473 | $ | 21,083 | |||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The following table presents selected unaudited quarterly financial data of the Company (in thousands, except per share data). The Company’s quarterly results of operations for these periods are not necessarily indicative of future results of operations. | ||||||||||||||||
Fiscal Year 2014 Quarter Ended | |||||||||||||||||
29-Mar | 28-Jun | 27-Sep | 31-Dec | ||||||||||||||
Revenue | $ | 85,820 | $ | 98,005 | $ | 105,769 | $ | 111,633 | |||||||||
Gross profit | 36,926 | 44,342 | 45,080 | 51,441 | |||||||||||||
Operating loss | (9,897 | ) | (3,890 | ) | (3,744 | ) | (2,853 | ) | |||||||||
Net loss | (10,027 | ) | (3,951 | ) | (3,848 | ) | (2,988 | ) | |||||||||
Net loss per common share, basic | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.06 | ) | |||||
Net loss per common share, diluted | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.06 | ) | |||||
Fiscal Year 2013 Quarter Ended | |||||||||||||||||
30-Mar | 29-Jun | 28-Sep | December 31 (1) | ||||||||||||||
Revenue | $ | 90,548 | $ | 94,439 | $ | 103,628 | $ | 94,003 | |||||||||
Gross profit | 41,115 | 42,505 | 47,407 | 40,047 | |||||||||||||
Operating loss | (5,540 | ) | (4,845 | ) | (12 | ) | (8,056 | ) | |||||||||
Net income (loss) | (6,203 | ) | (5,153 | ) | 544 | (6,453 | ) | ||||||||||
Net income (loss) per common share, basic | $ | (0.13 | ) | $ | (0.10 | ) | $ | 0.01 | $ | (0.13 | ) | ||||||
Net income (loss) per common share, diluted | $ | (0.13 | ) | $ | (0.10 | ) | $ | 0.01 | $ | (0.13 | ) | ||||||
(1) For the fourth quarter of 2013, net loss included $1.7 million of gain from utilization of inventory credit from Ericsson. See Note 2, "Business Combinations" of these Notes to the Consolidated Financial Statements for details of the Ericsson Credit. |
Description_of_Business_and_Si3
Description of Business and Significant Accounting Policies - Customer Concentration Risk (Details) (Customer Concentration Risk) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts Receivable | CenturyLink | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk, percentage | 15.00% | ||
Accounts Receivable | Ericsson | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk, percentage | 12.00% | ||
Revenue | CenturyLink | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk, percentage | 23.00% | 26.00% | 21.00% |
Description_of_Business_and_Si4
Description of Business and Significant Accounting Policies - Useful Lives of Property and Equipment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Restricted Cash and Cash Equivalents | 295 | $295 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life of Property and Equipment | 2 years | |
Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life of Property and Equipment | 3 years | |
Test Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life of Property and Equipment | 3 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life of Property and Equipment | 7 years |
Description_of_Business_and_Si5
Description of Business and Significant Accounting Policies - Textual (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Certain Terms [Line Items] | |||
Cash held by foreign subsidiaries | $3,800,000 | ||
Restricted cash | 295,000 | 295,000 | |
Accumulated Impairment Loss of Goodwill | 0 | ||
Goodwill, Impairment Loss | 0 | 0 | |
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Impairment of Intangible and Long-Lived Assets | $0 | $0 | $0 |
Minimum | |||
Schedule of Certain Terms [Line Items] | |||
Customer Payment Term | 30 days | ||
Product Warranty Period | 1 year | ||
Maximum | |||
Schedule of Certain Terms [Line Items] | |||
Customer Payment Term | 120 days | ||
Product Warranty Period | 5 years |
Business_Combinations_Assets_A
Business Combinations - Assets Acquired and Liabilities Assumed (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 02, 2012 |
Business Acquisition [Line Items] | ||||
Gain on bargain purchase | $0 | $0 | ($1,029) | |
EFAA Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Inventory | 9,361 | |||
Other Current Asset | 739 | |||
Property and Equipment | 3,616 | |||
Current Liabilities | -124 | |||
Deferred Tax Liability | -563 | |||
Net Assets Acquired | 13,029 | |||
Gain on bargain purchase | -1,029 | |||
Total Purchase Price | $12,000 |
Business_Combinations_Textual_
Business Combinations - Textual (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 02, 2012 | ||
Business Acquisition [Line Items] | ||||||
Gain on bargain purchase | $0 | $0 | $1,029,000 | |||
Gain from utilization of inventory credit | 1,700,000 | 0 | 1,651,000 | 0 | ||
Acquisition-related expenses | 0 | 0 | 1,401,000 | |||
EFAA Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total Consideration | 12,000,000 | |||||
Gain on bargain purchase | 1,029,000 | |||||
Credit Received | 3,300,000 | |||||
Acquisition-related expenses | 1,400,000 | [1] | ||||
Revenue of Acquiree | $600,000 | |||||
[1] | Includes stock-based compensation as follows (in thousands): Years Ended December 31, 2014, 2013, and 2012;Cost of revenue: $1,120, $1,468, $1,433;Research and development: $5,056, $4,896, $4,227;Sales and marketing: $5,601, $5,577, $5,160;General administrative: $4,240, $7,980, $6,617;Total: $16,017, $19,921, $17,437. |
Cash_Cash_Equivalents_and_Mark2
Cash, Cash Equivalents and Marketable Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $48,829,000 | $82,747,000 | $46,995,000 | $38,938,000 |
Marketable Securities | 62,850,000 | 0 | ||
Cash, Cash Equivalents And Marketable Securities | 111,679,000 | 82,747,000 | ||
Available-for-sale securities in a continuous unrealized loss position in excess of twelve months | 0 | |||
Corporate debt securities | ||||
Cash and Cash Equivalents [Line Items] | ||||
Marketable Securities | 61,050,000 | 0 | ||
Commercial paper | ||||
Cash and Cash Equivalents [Line Items] | ||||
Marketable Securities | 1,800,000 | 0 | ||
Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 17,866,000 | 62,905,000 | ||
Money market funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $30,963,000 | $19,842,000 |
Cash_Cash_Equivalents_and_Mark3
Cash, Cash Equivalents and Marketable Securities - Amortized Cost and Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $62,908 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | -59 | |
Fair Value | 62,850 | 0 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 61,108 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | -59 | |
Fair Value | 61,050 | 0 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,800 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $1,800 | $0 |
Cash_Cash_Equivalents_and_Mark4
Cash, Cash Equivalents and Marketable Securities - Contractual Maturity (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Cash and Cash Equivalents [Abstract] | |
Marketable securities due in 1 year or less, amortized cost | $59,835 |
Marketable securities due in 1-2 years, amortized cost | 3,073 |
Marketable securities, amortized cost | 62,908 |
Marketable securities due in 1 year or less, fair value | 59,776 |
Marketable securities due in 1-2 years, fair value | 3,074 |
Marketable securities, fair value | $62,850 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of intangible assets | ||
Gross Carrying Amount | $123,704 | $123,704 |
Accumulated Amortization | -98,525 | -79,964 |
Net, amortizable intangible assets | 25,179 | 43,740 |
Core developed technology | ||
Summary of intangible assets | ||
Gross Carrying Amount | 68,964 | 68,964 |
Accumulated Amortization | -55,694 | -47,339 |
Net, amortizable intangible assets | 13,270 | 21,625 |
Customer relationships | ||
Summary of intangible assets | ||
Gross Carrying Amount | 54,740 | 54,740 |
Accumulated Amortization | -42,831 | -32,625 |
Net, amortizable intangible assets | $11,909 | $22,115 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Expected Future Amortization (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of expected future amortization | ||
2015 | $18,561 | |
2016 | 5,805 | |
2017 | 813 | |
Net, amortizable intangible assets | $25,179 | $43,740 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Textual (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | |
Intangible Assets (Textual) [Abstract] | ||||
Amortization expense | $18,561,000 | $18,561,000 | $17,747,000 | |
Core Developed Technologies [Member] | ||||
Intangible Assets (Textual) [Abstract] | ||||
In-process technology | $16,300,000 | |||
Useful life | 5 years |
Balance_Sheet_Details_Accounts
Balance Sheet Details - Accounts Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of accounts receivable, net | ||
Accounts receivable | $31,493 | $44,642 |
Allowance for doubtful accounts | -241 | -358 |
Product return reserve | -508 | -764 |
Accounts receivable, net | $30,744 | $43,520 |
Balance_Sheet_Details_Inventor
Balance Sheet Details - Inventory (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of inventory, net | ||
Raw materials | $3,180 | $6,591 |
Finished goods | 43,573 | 44,480 |
Total inventory | $46,753 | $51,071 |
Balance_Sheet_Details_Property
Balance Sheet Details - Property and Equipment, net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $79,523 | $72,903 | |
Accumulated depreciation and amortization | -59,379 | -55,430 | |
Property and equipment, net | 20,144 | 17,473 | 21,083 |
Test Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 40,766 | 36,932 | |
Computer equipment and purchased software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 30,355 | 27,280 | |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,852 | 1,614 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $6,550 | $7,077 |
Balance_Sheet_Details_Accrued_
Balance Sheet Details - Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of accrued liabilities | ||
Accrued compensation and related benefits | $15,782 | $13,127 |
Accrued warranty | 9,553 | 10,856 |
Accrued professional and consulting fees | 5,860 | 1,634 |
Accrued business travel expenses | 1,414 | 540 |
Accrued customer rebates | 888 | 756 |
Accrued customer rebates | 851 | 712 |
Accrued rent reserve | 412 | 341 |
Sales and use tax payable | 397 | 521 |
Accrued freight | 303 | 612 |
Income taxes payable | 269 | 368 |
Accrued other | 3,714 | 2,608 |
Total accrued liabilities | $39,443 | $32,075 |
Balance_Sheet_Details_Deferred
Balance Sheet Details - Deferred Revenue (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue, Current | $12,722 | $34,862 |
Deferred Revenue, Noncurrent | 19,393 | 18,431 |
Deferred Revenue | 32,115 | 53,293 |
Product and Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue, Current | 9,753 | 32,051 |
Deferred Revenue, Noncurrent | 182 | 96 |
Extended Warranty | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue, Current | 2,969 | 2,811 |
Deferred Revenue, Noncurrent | $19,211 | $18,335 |
Balance_Sheet_Details_Textual_
Balance Sheet Details - Textual (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation and amortization | $9,263 | $10,181 | $8,562 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Payments Under Operating Leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $3,193 |
2016 | 2,658 |
2017 | 2,594 |
2018 | 2,325 |
2019 | 579 |
Thereafter | 470 |
Total | $11,819 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Product Warranty Activities (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product warranty activities [Roll Forward] | |||
Balance at beginning of period | $10,856 | $11,762 | $12,104 |
Warranty charged to cost of revenue | 3,394 | 4,350 | 4,701 |
Utilization of warranty | -4,697 | -5,256 | -5,043 |
Balance at end of period | $9,553 | $10,856 | $11,762 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Textual (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 22, 2011 | |
Lease Commitments | ||||
Future Sublease Rentals | $100,000 | |||
Unamortized Lease Incentive | 400,000 | |||
Rent Expense | 4,100,000 | 3,900,000 | 3,500,000 | |
Purchase Commitments | ||||
Accrued Excess and Obsolete Inventory At Contract Manufacturer | 888,000 | 756,000 | ||
Non-Cancelable Outstanding Purchase Orders | 24,800,000 | |||
Litigation | ||||
Trading profits | 500,000 | |||
Minimum | ||||
Accrued Warranty | ||||
Product Warranty Period | 1 year | |||
Maximum | ||||
Accrued Warranty | ||||
Product Warranty Period | 5 years | |||
Accrued Liabilities [Member] | ||||
Lease Commitments | ||||
Unamortized Lease Incentive | 100,000 | |||
Other Noncurrent Liabilities [Member] | ||||
Lease Commitments | ||||
Unamortized Lease Incentive | 300,000 | |||
Petaluma Lease | ||||
Lease Commitments | ||||
Lease Incentive Received | 1,200,000 | |||
Amendment to Petaluma Lease | ||||
Lease Commitments | ||||
Lease Incentive Received | 400,000 | |||
Occam Acquisition | Occam shareholders vs Occam and Occam Board Of Directors | ||||
Litigation | ||||
Common stock, shares outstanding | 15,147,085 | |||
Legal fees | $1,000,000 | |||
Occam Acquisition | Occam shareholders vs Occam and Occam Board Of Directors | Minimum | ||||
Litigation | ||||
Fair value of Occam's common stock on the Effective Date | 7.77 | |||
Occam Acquisition | Occam shareholders vs Occam and Occam Board Of Directors | Maximum | ||||
Litigation | ||||
Fair value of Occam's common stock on the Effective Date | 9.65 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of fair values of financial assets | ||
Marketable Securities | $62,850 | $0 |
Corporate debt securities | ||
Summary of fair values of financial assets | ||
Marketable Securities | 61,050 | 0 |
Commercial paper | ||
Summary of fair values of financial assets | ||
Marketable Securities | 1,800 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Summary of fair values of financial assets | ||
Total | 93,813 | 19,842 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities | ||
Summary of fair values of financial assets | ||
Marketable Securities | 61,050 | 0 |
Fair Value, Measurements, Recurring [Member] | Commercial paper | ||
Summary of fair values of financial assets | ||
Marketable Securities | 1,800 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Summary of fair values of financial assets | ||
Total | 30,963 | 19,842 |
Fair Value, Measurements, Recurring [Member] | Level 1 | Corporate debt securities | ||
Summary of fair values of financial assets | ||
Marketable Securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 | Commercial paper | ||
Summary of fair values of financial assets | ||
Marketable Securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Summary of fair values of financial assets | ||
Total | 62,850 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 | Corporate debt securities | ||
Summary of fair values of financial assets | ||
Marketable Securities | 61,050 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 | Commercial paper | ||
Summary of fair values of financial assets | ||
Marketable Securities | 1,800 | 0 |
Fair Value, Measurements, Recurring [Member] | Money market funds | ||
Summary of fair values of financial assets | ||
Money market funds | 30,963 | 19,842 |
Fair Value, Measurements, Recurring [Member] | Money market funds | Level 1 | ||
Summary of fair values of financial assets | ||
Money market funds | 30,963 | 19,842 |
Fair Value, Measurements, Recurring [Member] | Money market funds | Level 2 | ||
Summary of fair values of financial assets | ||
Money market funds | $0 | $0 |
Net_Loss_per_Share_Basic_and_D
Net Loss per Share - Basic and Diluted Shares Calculation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net loss | ($2,988) | ($3,848) | ($3,951) | ($10,027) | ($6,453) | $544 | ($5,153) | ($6,203) | ($20,814) | ($17,265) | ($28,326) |
Denominator: | |||||||||||
Weighted-average common shares outstanding | 50,808 | 49,419 | 48,180 | ||||||||
Basic and diluted net loss per common share (in dollars per share) | ($0.41) | ($0.35) | ($0.59) | ||||||||
Potentially dilutive shares, weighted-average | 5,020 | 5,308 | 4,454 |
Stockholders_Equity_Stock_Opti
Stockholders' Equity - Stock Options Activity (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Stock Options, Number of Shares: | ||
Stock options outstanding, beginning | 2,560 | 2,213 |
Stock options granted | 1,880 | |
Stock options exercised | -224 | |
Stock options forfeited | -258 | |
Stock options expired | -257 | |
Stock options outstanding, ending | 3,701 | 2,213 |
Stock options vested and expected to vest | 3,610 | |
Stock options exercisable | 1,474 | |
Stock Options, Weighted-Average Exercise Price Per Share: | ||
Stock options outstanding, beginning (in dollars per share) | $12.96 | |
Stock options granted (in dollars per share) | $9.29 | |
Stock options exercised (in dollars per share) | $7.44 | |
Stock options forfeited (in dollars per share) | $9.21 | |
Stock options expired (in dollars per share) | $17.44 | |
Stock options outstanding, ending (in dollars per share) | $11.38 | |
Stock options vested and expected to vest (in dollars per share) | $11.43 | |
Stock options exercisable (in dollars per share) | $14.34 | |
Weighted-average remaining contractual term, stock options outstanding | 7 years 10 months 21 days | |
Weighted-average remaining contractual term, stock options vested and expected to vest | 7 years 10 months 10 days | |
Weighted-average remaining contractual term, stock options exercisable | 5 years 9 months 22 days | |
Aggregate intrinsic value, stock options outstanding | $3,291 | |
Aggregate intrinsic value, stock options vested and expected to vest | 3,218 | |
Aggregate intrinsic value, stock options exercisable | $1,377 |
Stockholders_Equity_RSU_PRSU_a
Stockholders' Equity - RSU, PRSU and RSA Activities (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2011 | |
RSUs | ||||
RSU, PRSU and RSA, Number of Shares: | ||||
Outstanding, beginning | 1,506,000 | 1,762,000 | ||
Granted | 987,000 | |||
Vested | -661,000 | |||
Canceled | -98,000 | |||
Outstanding, ending | 1,734,000 | 1,506,000 | 1,762,000 | |
RSU, PRSU and RSA, Weighted-Average Grant Date Fair Value Per Value: | ||||
Outstanding, beginning (in dollars per share) | $11.04 | |||
Granted (in dollars per share) | $8.72 | $9.20 | $6.55 | |
Vested (in dollars per share) | $11.68 | |||
Canceled (in dollars per share) | $10.07 | |||
Outstanding, ending (in dollars per share) | $9.53 | $11.04 | ||
PRSUs | ||||
RSU, PRSU and RSA, Number of Shares: | ||||
Outstanding, beginning | 413,000 | 183,000 | ||
Granted | 174,000 | |||
Vested | -168,000 | |||
Canceled | -57,000 | |||
Outstanding, ending | 362,000 | 413,000 | 183,000 | |
RSU, PRSU and RSA, Weighted-Average Grant Date Fair Value Per Value: | ||||
Outstanding, beginning (in dollars per share) | $12.81 | |||
Granted (in dollars per share) | $9.16 | $11.24 | $14.81 | |
Vested (in dollars per share) | $14.61 | |||
Canceled (in dollars per share) | $10.80 | |||
Outstanding, ending (in dollars per share) | $10.53 | $12.81 | ||
RSAs | ||||
RSU, PRSU and RSA, Number of Shares: | ||||
Outstanding, beginning | 189,000 | |||
Granted | 0 | 423,000 | ||
Vested | -117,000 | |||
Canceled | -10,000 | |||
Outstanding, ending | 62,000 | |||
RSU, PRSU and RSA, Weighted-Average Grant Date Fair Value Per Value: | ||||
Outstanding, beginning (in dollars per share) | $21.67 | |||
Granted (in dollars per share) | $0 | |||
Vested (in dollars per share) | $21.67 | |||
Canceled (in dollars per share) | $21.67 | |||
Outstanding, ending (in dollars per share) | $21.67 |
Stockholders_Equity_Fair_Value
Stockholders' Equity - Fair Value of Awards Granted (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share, stock options | $4.79 | $4.89 | $4.68 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share | $8.72 | $9.20 | $6.55 |
PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share | $9.16 | $11.24 | $14.81 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share | $2.46 | $2.94 | $2.34 |
Stockholders_Equity_Assumption
Stockholders' Equity - Assumptions (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | ||||
Weighted average assumptions used to estimate fair value of stock options | ||||
Expected volatility | 66.00% | 52.00% | 62.00% | 56.00% |
Expected life | 6 years 2 months 16 days | 6 years 0 months 18 days | 6 years 3 months | |
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Risk free interest rate | 1.87% | 1.14% | 1.06% | |
ESPP | ||||
Weighted average assumptions used to estimate fair value of stock options | ||||
Expected volatility | 45.00% | 50.00% | 63.00% | |
Expected life | 6 months | 6 months | 6 months | |
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Risk free interest rate | 0.07% | 0.09% | 0.13% |
Stockholders_Equity_Unrecogniz
Stockholders' Equity - Unrecognized Stock-based Compensation Expenses (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $5,145 |
Weighted-average amortization period | 2 years 7 months 6 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | 10,768 |
Weighted-average amortization period | 2 years 4 months 24 days |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | 848 |
Weighted-average amortization period | 1 year 2 months 12 days |
RSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | 699 |
Weighted-average amortization period | 7 months 6 days |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $692 |
Weighted-average amortization period | 4 months 24 days |
Stockholders_Equity_Warrants_O
Stockholders' Equity - Warrants Outstanding (Details) (Expiration Date of September 4, 2017, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Expiration Date of September 4, 2017 | |
Class of Warrant or Right [Line Items] | |
Expiration date, warrants | 4-Sep-17 |
Exercise price per share, warrants | $19.56 |
Number of warrants outstanding | 15 |
Stockholders_Equity_Shares_Res
Stockholders' Equity - Shares Reserved For Future Issuance (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 02, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding | 3,701,000 | 2,560,000 | 2,213,000 | |
Shares available for future issuance under ESPP | 9,986,000 | 10,728,000 | 11,400,000 | |
Common stock warrants | 15,000 | 23,000 | 23,000 | |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding awards, instruments other than options | 1,734,000 | 1,506,000 | 1,762,000 | |
PRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding awards, instruments other than options | 362,000 | 413,000 | 183,000 | |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future issuance under ESPP | 1,891,000 | 2,574,000 | 3,260,000 | |
2010 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grant under 2010 Plan | 2,283,000 | 3,652,000 | 3,959,000 | |
Shares available for future issuance under ESPP | 4,666,666 |
Stockholders_Equity_Textual_De
Stockholders' Equity - Textual (Details) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 36 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||
Feb. 22, 2011 | Mar. 26, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 29, 2012 | Jul. 31, 2011 | Dec. 31, 2013 | Sep. 23, 2009 | 31-May-11 | Oct. 30, 2010 | Apr. 08, 2010 | Mar. 02, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |||||||||||
Initial public offering, price per share (in dollars per share) | $13 | |||||||||||||
Underwriter's fee | $3,800,000 | |||||||||||||
Stock issued in connection with business acquisition, shares | 6,400,000 | |||||||||||||
Stock issued in connection with business acquisition, value | 117,200,000 | |||||||||||||
Dividends declared or paid | $0 | |||||||||||||
Preferred stock, shares issued | 0 | 0 | 0 | |||||||||||
Total intrinsic value for exercised stock options | 600,000 | 1,000,000 | 600,000 | |||||||||||
Exercise of stock options and warrants | 1,668,000 | 747,000 | 194,000 | |||||||||||
Total fair value of stock options vested | 4,000,000 | 3,900,000 | 4,600,000 | |||||||||||
Fair value of accelerated stock awards | 600,000 | |||||||||||||
Shares issued in connection with Employee Stock Purchase Plan | 682,832 | |||||||||||||
Shares available for future issuance under ESPP | 9,986,000 | 10,728,000 | 11,400,000 | 11,400,000 | 10,728,000 | |||||||||
Stock based compensation | 16,017,000 | 19,921,000 | 17,437,000 | |||||||||||
Percent of historical volatility | 50.00% | |||||||||||||
Percent of implied volatility | 50.00% | |||||||||||||
Stock options granted, shares | 1,880,000 | |||||||||||||
Aggregate fair value of options and RSUs | 16,017,000 | 19,921,000 | 17,437,000 | |||||||||||
Stock Options | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Expected volatility | 52.00% | 62.00% | 56.00% | 66.00% | ||||||||||
Stock Options | Minimum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Expected volatility | 55.00% | |||||||||||||
Stock Options | Maximum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Expected volatility | 56.00% | |||||||||||||
RSUs | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Common Stock, Conversion Basis | Each RSU granted under the 2010 Plan represents a right to receive one share of the Company’s common stock (subject to adjustment for certain specified changes in the capital structure of the Company) upon the completion of a specific period of continued service. | |||||||||||||
Awards granted, shares | 987,000 | |||||||||||||
RSAs | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting rights | vest 25% per year for 4 years from the grant date | |||||||||||||
Awards granted, shares | 0 | 423,000 | ||||||||||||
PRSUs | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Awards granted, shares | 174,000 | |||||||||||||
PRSUs | Minimum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Performance period, PRSU | 2 years | |||||||||||||
Target performance rate, PRSU | 0.00% | |||||||||||||
PRSUs | Maximum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Performance period, PRSU | 3 years | |||||||||||||
Target performance rate, PRSU | 200.00% | |||||||||||||
Prior Plans | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting period | 4 years | |||||||||||||
Contractual term, stock options | 10 years | |||||||||||||
2010 Plan | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Minimum exercise price of stock option, percentage | 100.00% | |||||||||||||
Vesting period | 4 years | |||||||||||||
Contractual term, stock options | 10 years | |||||||||||||
Automatic annual increase of reserved shares | 2,666,664 | |||||||||||||
Vesting rights | vest 25% on the first anniversary of the vesting commencement date and on a monthly basis thereafter for a period of an additional three years | |||||||||||||
Shares available for future issuance under ESPP | 4,666,666 | |||||||||||||
2010 Plan | Incentive Stock Option | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Maximum shares allowed to be issued | 17,150,494 | |||||||||||||
2010 Plan | RSUs | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting period | 4 years | |||||||||||||
RSU granted converted into common stock | 1 | |||||||||||||
Award vesting rights, percentage | 25.00% | |||||||||||||
ESPP | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
ESPP, maximum employee payroll deduction percentage | 15.00% | |||||||||||||
Maximum number of shares employee can purchase during offering period | 2,000 | |||||||||||||
ESPP, discounted purchase price percentage | 85.00% | |||||||||||||
Shares authorized | 4,300,000 | |||||||||||||
Shares available for future issuance under ESPP | 1,891,000 | |||||||||||||
Stock Option Exchange Program | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock options forfeited and expired | 3,400,000 | |||||||||||||
Stock Option Exchange Program | RSUs | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Award vesting rights, percentage | 50.00% | 50.00% | ||||||||||||
Transition and Separation Agreement with Roger Weingarth | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Fair value recognized for accelerated stock awards | 100,000 | 500,000 | ||||||||||||
Incentive Stock Option | Prior Plans | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Minimum exercise price of stock option, percentage | 100.00% | |||||||||||||
Non-qualified Stock Option | 2000 Plan | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Minimum exercise price of stock option, percentage | 85.00% | |||||||||||||
Non-qualified Stock Option | 2002 Plan | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Minimum exercise price of stock option, percentage | 100.00% | |||||||||||||
Underwriter Option | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Common stock, issuance date | 8-Apr-10 | |||||||||||||
Common stock, sold in initial public offering, shares | 949,339 | |||||||||||||
Proceeds from issuance of common stock | 12,300,000 | |||||||||||||
Stock issuance costs | 800,000 | |||||||||||||
IPO | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Common stock, issuance date | 26-Mar-10 | |||||||||||||
Common stock, sold in initial public offering, shares | 4,166,666 | |||||||||||||
Proceeds from issuance of common stock | 54,200,000 | |||||||||||||
Stock issuance costs | 4,600,000 | |||||||||||||
Occam Acquisition | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock options granted, shares | 536,190 | |||||||||||||
Aggregate fair value of options and RSUs | 5,800,000 | |||||||||||||
Value of options in consideration for business combination | 1,400,000 | |||||||||||||
Post Combination Expense | $4,500,000 | |||||||||||||
Occam Acquisition | RSUs | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Awards granted, shares | 42,654 | |||||||||||||
Year one vesting | 2010 Plan | Stock Options | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Award vesting rights, percentage | 25.00% | |||||||||||||
Additional years of monthly vesting | 2010 Plan | Stock Options | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting period | 3 years |
Employee_Benefit_Plan_Textual_
Employee Benefit Plan - Textual (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Company matching contributions, 401(K) Plan | $1.50 | $1.50 | $1.40 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | $190 | $132 | $98 |
Other comprehensive loss before reclassification adjustments | -109 | ||
Reclassification adjustment for realized gains on marketable securities included in net loss | -1 | ||
Total other comprehensive income (loss), net of tax | -110 | 58 | 34 |
Balance at end of period | 80 | 190 | 132 |
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | 0 | 0 | 0 |
Other comprehensive loss before reclassification adjustments | -57 | ||
Reclassification adjustment for realized gains on marketable securities included in net loss | -1 | ||
Total other comprehensive income (loss), net of tax | -58 | 0 | 0 |
Balance at end of period | -58 | 0 | 0 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | 190 | 132 | 98 |
Other comprehensive loss before reclassification adjustments | -52 | ||
Reclassification adjustment for realized gains on marketable securities included in net loss | 0 | ||
Total other comprehensive income (loss), net of tax | -52 | 58 | 34 |
Balance at end of period | $138 | $190 | $132 |
Credit_Facility_Textual_Detail
Credit Facility - Textual (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Jul. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 28, 2013 | |
extention | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility, maximum capacity | $50,000,000 | ||||
Revolving credit facility, maturity date | 29-Jul-16 | ||||
Restricted cash | 295,000 | 295,000 | |||
Number of one-year period extensions | 2 | ||||
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. | ||||
Commitment fee percentage | 0.25% | ||||
Payments of Debt Issuance Costs | 0 | 316,000 | 0 | ||
Unamortized Debt Issuance Expense | 200,000 | ||||
Prior Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility, maximum capacity | 30,000,000 | ||||
Revolving credit facility, maturity date | 30-Jun-13 | ||||
Letter of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility, maximum capacity | 20,000,000 | ||||
Swingline Facility Member [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility, maximum capacity | 10,000,000 | ||||
Long-term Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility, maximum capacity | $25,000,000 | ||||
Base Rate [Member] | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
Base Rate [Member] | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
LIBOR [Member] | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
LIBOR [Member] | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 2.50% |
Income_Taxes_Loss_before_provi
Income Taxes - Loss before provision for income taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | ($21,495) | ($18,500) | ($28,987) |
Foreign | 1,262 | 1,221 | 819 |
Loss before provision for (benefit from) income taxes | ($20,233) | ($17,279) | ($28,168) |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Provision (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal current income tax | $0 | ($274) | $152 |
State current income tax | 104 | 41 | 73 |
Foreign current income tax | 469 | 315 | 440 |
Federal deferred income tax (benefit) | 0 | 0 | -474 |
State deferred income tax (benefit) | 0 | 0 | -89 |
Foreign deferred income tax (benefit) | 8 | -96 | 56 |
Provision for (benefit from) income taxes | $581 | ($14) | $158 |
Income_Taxes_Income_Tax_Rate_R
Income Taxes - Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 34.00% | 34.00% | 34.00% |
State statutory rate | 2.50% | 3.40% | 5.20% |
Foreign operations | -0.10% | 1.40% | 0.10% |
Release of FIN 48 liability and interest | 0.00% | 0.70% | 0.00% |
R&D tax credits | 9.20% | 13.10% | 2.50% |
Other adjustments | 0.00% | 0.00% | 2.00% |
Acquisition-related costs | 0 | 0 | 0.012 |
Other permanent items | -2.70% | -4.50% | 0.10% |
Tax true-up | -0.20% | 1.00% | 0.00% |
Valuation allowance | -45.60% | -49.00% | -45.70% |
Effective Tax Rate | -2.90% | 0.10% | -0.60% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets, Gross [Abstract] | ||
Net operating loss carryforwards | $166,150 | $168,431 |
Tax credit carryforwards | 25,052 | 22,507 |
Depreciation and Amortization | 1,275 | 2,996 |
Accruals and reserves | 13,810 | 11,479 |
Deferred revenue | 9,930 | 12,037 |
Stock-based compensation | 5,138 | 5,570 |
Other | 498 | 450 |
Gross deferred tax assets | 221,853 | 223,470 |
Valuation allowance | -212,703 | -207,315 |
Net deferred tax assets | 9,150 | 16,155 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Intangible assets | -8,995 | -15,988 |
Net deferred tax assets reflected in balance sheet | 155 | 167 |
Deferred Tax Assets, Net [Abstract] | ||
Deferred tax assets, current | 785 | 0 |
Deferred tax assets, long-term | 155 | 167 |
Deferred tax liabilities, long-term | ($785) | $0 |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits Activity (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Unrecognized Tax Benefits Roll Forward | ||
Beginning Balance | $14,382 | $13,238 |
Additions For Tax Positions Related To Prior Year | 76 | 317 |
Reductions For Tax Positions Related To Prior Year | 0 | -48 |
Additions For Tax Positions Related To Current Year | 963 | 990 |
Reductions from a lapse of applicable statute of limitations | 0 | -115 |
Ending Balance | $15,421 | $14,382 |
Income_Taxes_Textual_Details
Income Taxes - Textual (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
Provision for (benefit from) income taxes | $581,000 | ($14,000) | $158,000 |
Increase (decrease) In valuation allowance | 5,400,000 | -100,000 | |
Excess tax benefits of stock option deductions included in valuation allowance | 100,000 | 100,000 | |
Research and development credits | 25,052,000 | 22,507,000 | |
Undistributed earnings of foreign subsidiaries | 2,200,000 | ||
Unrecognized tax benefits | 15,421,000 | 14,382,000 | 13,238,000 |
Accrued interest or penalties for uncertain income tax | 0 | ||
US Federal [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforward | 549,100,000 | ||
Deduction related to excess tax benefits from stock options which are not included in net operating loss carryforward | 37,600,000 | 37,200,000 | |
Research and development credits | 20,100,000 | ||
State | |||
Income Taxes [Line Items] | |||
Operating loss carryforward | 119,100,000 | ||
Deduction related to excess tax benefits from stock options which are not included in net operating loss carryforward | 34,000,000 | 34,000,000 | |
California State [Member] | |||
Income Taxes [Line Items] | |||
Research and development credits | 23,600,000 | ||
Other State [Member] | |||
Income Taxes [Line Items] | |||
Research and development credits | $2,100,000 |
Segment_Information_Revenue_by
Segment Information - Revenue by Geographic Region (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $111,633 | $105,769 | $98,005 | $85,820 | $94,003 | $103,628 | $94,439 | $90,548 | $401,227 | $382,618 | $330,218 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 352,458 | 333,403 | 306,003 | ||||||||
Caribbean | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 18,725 | 17,466 | 9,343 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 5,948 | 17,397 | 268 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 9,995 | 10,231 | 10,894 | ||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $14,101 | $4,121 | $3,710 |
Segment_Information_Property_a
Segment Information - Property and Equipment by Geographic Region (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property, Plant and Equipment, Net | $20,144 | $17,473 | $21,083 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property, Plant and Equipment, Net | 17,852 | 14,969 | 18,390 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property, Plant and Equipment, Net | $2,292 | $2,504 | $2,693 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data - Unaudited (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $111,633 | $105,769 | $98,005 | $85,820 | $94,003 | $103,628 | $94,439 | $90,548 | $401,227 | $382,618 | $330,218 |
Gross profit | 51,441 | 45,080 | 44,342 | 36,926 | 40,047 | 47,407 | 42,505 | 41,115 | 177,789 | 171,074 | 137,576 |
Operating loss | -2,853 | -3,744 | -3,890 | -9,897 | -8,056 | -12 | -4,845 | -5,540 | -20,384 | -18,453 | -29,024 |
Net income (loss) | -2,988 | -3,848 | -3,951 | -10,027 | -6,453 | 544 | -5,153 | -6,203 | -20,814 | -17,265 | -28,326 |
Net income (loss) per common share, basic (in dollars per share) | ($0.06) | ($0.08) | ($0.08) | ($0.20) | ($0.13) | $0.01 | ($0.10) | ($0.13) | |||
Net income (loss) per common share, diluted (in dollars per share) | ($0.06) | ($0.08) | ($0.08) | ($0.20) | ($0.13) | $0.01 | ($0.10) | ($0.13) | |||
Gain from utilization of inventory credit | $1,700 | $0 | $1,651 | $0 |
Schedule_II_Valuation_and_Qual1
Schedule II. Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance At Beginning of Year | $358 | $421 | $402 |
Additions Charged to Cost or Expense or Revenue | 154 | -13 | 112 |
Deductions and Write Offs | -271 | -50 | -93 |
Balance At End of Year | 241 | 358 | 421 |
Product return reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance At Beginning of Year | 764 | 1,740 | 835 |
Additions Charged to Cost or Expense or Revenue | 4,805 | 3,535 | 5,474 |
Deductions and Write Offs | -5,061 | -4,511 | -4,569 |
Balance At End of Year | $508 | $764 | $1,740 |