Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 28, 2015 | Apr. 21, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CALIX, INC | |
Entity Central Index Key | 1406666 | |
Document Type | 10-Q | |
Document Period End Date | 28-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 51,805,869 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $29,618 | $48,829 |
Marketable securities | 68,157 | 62,850 |
Restricted cash | 0 | 295 |
Accounts receivable, net | 39,000 | 30,744 |
Inventory | 40,637 | 46,753 |
Deferred cost of revenue | 1,762 | 5,080 |
Prepaid expenses and other current assets | 10,779 | 12,936 |
Total current assets | 189,953 | 207,487 |
Property and equipment, net | 19,403 | 20,144 |
Goodwill | 116,175 | 116,175 |
Intangible assets, net | 20,539 | 25,179 |
Other assets | 1,113 | 1,236 |
Total assets | 347,183 | 370,221 |
Current liabilities: | ||
Accounts payable | 12,792 | 23,629 |
Accrued liabilities | 39,447 | 39,443 |
Deferred revenue | 9,036 | 12,722 |
Total current liabilities | 61,275 | 75,794 |
Long-term portion of deferred revenue | 19,428 | 19,393 |
Other long-term liabilities | 2,091 | 2,443 |
Total liabilities | 82,794 | 97,630 |
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 March 28, 2015 and December 31, 2014 | 0 | 0 |
Common stock, $0.025 par value; 100,000,000 shares authorized; 51,802,890 shares and 51,628,257 shares issued and outstanding as of March 28, 2015 and December 31, 2014, respectively | 1,295 | 1,291 |
Additional paid-in capital | 805,525 | 801,810 |
Accumulated other comprehensive income | 89 | 80 |
Accumulated deficit | -542,520 | -530,590 |
Total stockholders’ equity | 264,389 | 272,591 |
Total liabilities and stockholders’ equity | $347,183 | $370,221 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.03 | $0.03 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.03 | $0.03 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 51,802,890 | 51,628,257 |
Common stock, shares outstanding | 51,802,890 | 51,628,257 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | ||
Revenue | $91,038 | $85,820 | ||
Cost of revenue: | ||||
Products and services | 46,460 | [1] | 46,806 | [1] |
Amortization of intangible assets | 2,088 | 2,088 | ||
Total cost of revenue | 48,548 | 48,894 | ||
Gross profit | 42,490 | 36,926 | ||
Operating expenses: | ||||
Research and development | 21,914 | [1] | 19,630 | [1] |
Sales and marketing | 19,759 | [1] | 17,390 | [1] |
General and administrative | 10,152 | [1] | 7,251 | [1] |
Amortization of intangible assets | 2,552 | 2,552 | ||
Total operating expenses | 54,377 | 46,823 | ||
Loss from operations | -11,887 | -9,897 | ||
Interest and other income (expense), net: | ||||
Interest income | 379 | 4 | ||
Interest expense | -379 | -57 | ||
Other income (expense), net | 48 | 33 | ||
Loss before provision for income taxes | -11,839 | -9,917 | ||
Provision for income taxes | 91 | 110 | ||
Net loss | -11,930 | -10,027 | ||
Net loss per common share: | ||||
Basic and diluted net loss per common share (in dollars per share) | ($0.23) | ($0.20) | ||
Weighted-average shares used to compute basic and diluted net loss per common share (in shares) | 51,732 | 50,271 | ||
Other comprehensive income (loss), net of tax: | ||||
Unrealized gains (losses) on available-for-sale marketable securities adjustment, net | 39 | 0 | ||
Foreign currency translation adjustment, net | -30 | 11 | ||
Total other comprehensive income (loss) | 9 | 11 | ||
Comprehensive loss | -11,921 | -10,016 | ||
Stock-based compensation | 3,662 | 3,902 | ||
Cost of revenue | ||||
Other comprehensive income (loss), net of tax: | ||||
Stock-based compensation | 175 | 354 | ||
Research and development | ||||
Other comprehensive income (loss), net of tax: | ||||
Stock-based compensation | 1,212 | 1,180 | ||
Sales and marketing | ||||
Other comprehensive income (loss), net of tax: | ||||
Stock-based compensation | 1,425 | 1,368 | ||
General and administrative | ||||
Other comprehensive income (loss), net of tax: | ||||
Stock-based compensation | $850 | $1,000 | ||
[1] | Includes stock-based compensation as follows: Three Months Ended March 28, 2015 and March 29, 2014: Cost of revenue - $175, $354; Research and development - $1,212, $1,180; Sales and marketing - $1,425, $1,368; General administrative - $850, $1,000; Total - $3,662, $3,902. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Operating activities: | ||
Net loss | ($11,930) | ($10,027) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,480 | 2,271 |
Loss on retirement of property and equipment | 10 | 0 |
Amortization of intangible assets | 4,640 | 4,640 |
Amortization of premiums related to available-for-sale securities | 287 | 0 |
Stock-based compensation | 3,662 | 3,902 |
Changes in operating assets and liabilities: | ||
Restricted cash | 295 | 0 |
Accounts receivable, net | -8,256 | -614 |
Inventory | 6,115 | 6,011 |
Deferred cost of revenue | 3,318 | 3,233 |
Prepaid expenses and other assets | 1,974 | 1,016 |
Accounts payable | -10,836 | -12,276 |
Accrued liabilities | 54 | 2,485 |
Deferred revenue | -3,651 | -5,811 |
Other long-term liabilities | -59 | -56 |
Net cash used in operating activities | -11,897 | -5,226 |
Investing activities: | ||
Purchases of property and equipment | -1,742 | -1,908 |
Purchases of marketable securities | -17,004 | 0 |
Maturities of marketable securities | 11,450 | 0 |
Net cash used in investing activities | -7,296 | -1,908 |
Financing activities: | ||
Proceeds from exercise of stock options | 564 | 21 |
Taxes paid for awards vested under equity incentive plans | -506 | -473 |
Net cash provided by (used in) financing activities | 58 | -452 |
Effect of exchange rate changes on cash and cash equivalents | -76 | 8 |
Net decrease in cash and cash equivalents | -19,211 | -7,578 |
Cash and cash equivalents at beginning of period | 48,829 | 82,747 |
Cash and cash equivalents at end of period | $29,618 | $75,169 |
Company_and_Basis_of_Presentat
Company and Basis of Presentation | 3 Months Ended |
Mar. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company and Basis of Presentation | Company and Basis of Presentation |
Company | |
Calix, Inc. (together with its subsidiaries, “Calix,” the “Company,” “our,” “we,” or “us”) was incorporated in August 1999, and is a Delaware corporation. The Company is a leading 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, which are designed to enhance and transform CSP access networks to meet the changing demands of subscribers rapidly and cost-effectively. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements, including the accounts of Calix, Inc. and its wholly-owned subsidiaries, have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. generally accepted accounting principles (“GAAP”) can be condensed or omitted. In the opinion of management, the financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of the Company’s financial position and operating results. All significant intercompany balances and transactions have been eliminated in consolidation. The Condensed Consolidated Balance Sheet at December 31, 2014 has been derived from the audited financial statements at that date. | |
The results of the Company’s operations can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year or any future periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements included in the Company’s Form 10-K for the year ended December 31, 2014. | |
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 three months ended March 28, 2015 than in the three months ended March 29, 2014. The preparation of financial statements in conformity with GAAP for interim financial reporting requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Significant_Accounting_Policie
Significant Accounting Policies (Notes) | 3 Months Ended |
Mar. 28, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies |
The Company’s significant accounting policies are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014. Our significant accounting policies did not change during the three months ended March 28, 2015. | |
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 FASB has indicated that there may be certain future changes to the revenue guidance which could impact the timing of adoption and, on April 29, 2015, the FASB issued an exposure draft proposing the deferral of the effective date by one year. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. |
Cash_Cash_Equivalents_and_Mark
Cash, Cash Equivalents and Marketable Securities (Notes) | 3 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||
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 are stated at amounts that approximate fair value based on quoted market prices. Marketable securities are recorded at their fair values. | |||||||||||||||||
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 accumulated other comprehensive income (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 (loss) 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 March 28, 2015 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. | |||||||||||||||||
Cash, cash equivalents and marketable securities consisted of the following (in thousands): | |||||||||||||||||
March 28, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 13,838 | $ | 17,866 | |||||||||||||
Money market funds | 15,780 | 30,963 | |||||||||||||||
Total cash and cash equivalents | 29,618 | 48,829 | |||||||||||||||
Marketable securities: | |||||||||||||||||
Corporate debt securities | 63,063 | 61,050 | |||||||||||||||
Commercial paper | 5,094 | 1,800 | |||||||||||||||
Total marketable securities | 68,157 | 62,850 | |||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 97,775 | $ | 111,679 | |||||||||||||
The carrying amounts of our money market funds approximate their fair values due to their nature, duration and short maturities. | |||||||||||||||||
As of March 28, 2015, the amortized cost and fair value of marketable securities were as follows (in thousands): | |||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||
Corporate debt securities | $ | 63,082 | $ | 8 | $ | (27 | ) | $ | 63,063 | ||||||||
Commercial paper | 5,094 | — | $ | — | 5,094 | ||||||||||||
Total marketable securities | $ | 68,176 | $ | 8 | $ | (27 | ) | $ | 68,157 | ||||||||
As of December 31, 2014, the amortized cost and fair value of marketable securities 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 March 28, 2015 and December 31, 2014, there are no available-for-sale securities that have been in a continuous unrealized loss position in excess of twelve months. | |||||||||||||||||
As of March 28, 2015, 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 | $ | 66,132 | $ | 66,113 | |||||||||||||
Due in 1-2 years | $ | 2,044 | $ | 2,044 | |||||||||||||
Total marketable securities | $ | 68,176 | $ | 68,157 | |||||||||||||
Fair_Value_Measurements_Notes
Fair Value Measurements (Notes) | 3 Months Ended | ||||||||||||
Mar. 28, 2015 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||
In accordance with Accounting Standard Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures, (“ASC Topic 820”), the Company measures its cash equivalents 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 following table sets forth the Company's financial assets measured at fair value on a recurring basis as of March 28, 2015 and December 31, 2014, based on the three-tier fair value hierarchy (in thousands): | |||||||||||||
As of March 28, 2015 | Level 1 | Level 2 | Total | ||||||||||
Money market funds | $ | 15,780 | $ | — | $ | 15,780 | |||||||
Corporate debt securities | — | 63,063 | 63,063 | ||||||||||
Commercial paper | — | 5,094 | 5,094 | ||||||||||
Total | $ | 15,780 | $ | 68,157 | $ | 83,937 | |||||||
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 | |||||||
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 three months ended March 28, 2015 and March 29, 2014. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets (Notes) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||||||||||
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 to goodwill since the acquisition dates. | |||||||||||||||||||||||||
Goodwill is not amortized but instead is subject to an annual impairment test or more frequently if events or changes in circumstances indicate that it may be impaired. We evaluate goodwill on an annual basis at the end of the second quarter of each year. Management has determined that we operate as a single reporting unit and, therefore, evaluates goodwill impairment at the enterprise level. Management assessed qualitative factors to determine whether it was more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the Company was less than its carrying amount, including goodwill, as of June 28, 2014. In assessing the qualitative factors, management considered the impact of these key factors: macro-economic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. Management concluded that the fair value of the Company was more likely than not greater than its carrying amount as of June 28, 2014. As such, it was not necessary to perform the two-step goodwill impairment test at the time. | |||||||||||||||||||||||||
At the end of the first quarter of 2015, management reviewed events and changes to its business subsequent to the 2014 annual impairment test and concluded that there were no indicators of impairment to the carrying value of goodwill during the three months ended March 28, 2015. As of March 28, 2015, there was no impairment to the carrying value of the Company's goodwill. | |||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||
Intangible assets are carried at cost, less accumulated amortization. The details of intangible assets as of March 28, 2015 and December 31, 2014 are disclosed in the following table (in thousands): | |||||||||||||||||||||||||
28-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Core developed technology | $ | 68,964 | $ | (57,782 | ) | $ | 11,182 | $ | 68,964 | $ | (55,694 | ) | $ | 13,270 | |||||||||||
Customer relationships | 54,740 | (45,383 | ) | 9,357 | 54,740 | (42,831 | ) | 11,909 | |||||||||||||||||
Total intangible assets, excluding goodwill | $ | 123,704 | $ | (103,165 | ) | $ | 20,539 | $ | 123,704 | $ | (98,525 | ) | $ | 25,179 | |||||||||||
Amortization expense was $4.6 million for the three months ended March 28, 2015 and March 29, 2014. | |||||||||||||||||||||||||
As of March 28, 2015, expected future amortization expense for the fiscal years indicated is as follows (in thousands): | |||||||||||||||||||||||||
Period | Expected | ||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||
Remainder of 2015 | $ | 13,921 | |||||||||||||||||||||||
2016 | 5,805 | ||||||||||||||||||||||||
2017 | 813 | ||||||||||||||||||||||||
Total | $ | 20,539 | |||||||||||||||||||||||
Balance_Sheet_Details_Notes
Balance Sheet Details (Notes) | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Balance Sheet Details | Balance Sheet Details | ||||||||
Accounts receivable, net consisted of the following (in thousands): | |||||||||
March 28, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accounts receivable | $ | 39,819 | $ | 31,493 | |||||
Allowance for doubtful accounts | (330 | ) | (241 | ) | |||||
Product return reserve | (489 | ) | (508 | ) | |||||
Accounts receivable, net | $ | 39,000 | $ | 30,744 | |||||
Inventory consisted of the following (in thousands): | |||||||||
March 28, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 2,706 | $ | 3,180 | |||||
Finished goods | 37,931 | 43,573 | |||||||
Total inventory | $ | 40,637 | $ | 46,753 | |||||
Property and equipment, net consisted of the following (in thousands): | |||||||||
March 28, | December 31, | ||||||||
2015 | 2014 | ||||||||
Test equipment | $ | 41,755 | $ | 40,766 | |||||
Computer equipment and software | 27,440 | 30,355 | |||||||
Furniture and fixtures | 1,852 | 1,852 | |||||||
Leasehold improvements | 6,541 | 6,550 | |||||||
Total | 77,588 | 79,523 | |||||||
Accumulated depreciation and amortization | (58,185 | ) | (59,379 | ) | |||||
Property and equipment, net | $ | 19,403 | $ | 20,144 | |||||
Accrued liabilities consisted of the following (in thousands): | |||||||||
March 28, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accrued compensation and related benefits | $ | 15,977 | $ | 15,782 | |||||
Accrued warranty | 9,623 | 9,553 | |||||||
Accrued professional and consulting fees | 6,235 | 5,860 | |||||||
Accrued customer rebates | 1,513 | 851 | |||||||
Accrued business travel expenses | 1,079 | 1,414 | |||||||
Accrued excess and obsolete inventory at contract manufacturers | 821 | 888 | |||||||
Sales and use tax payable | 820 | 397 | |||||||
Accrued rent reserve | 394 | 412 | |||||||
Accrued freight | 355 | 303 | |||||||
Income taxes payable | 118 | 269 | |||||||
Accrued other | 2,512 | 3,714 | |||||||
Total accrued liabilities | $ | 39,447 | $ | 39,443 | |||||
Deferred revenue consisted of the following (in thousands): | |||||||||
March 28, | 31-Dec-14 | ||||||||
2015 | |||||||||
Product and services - current | $ | 6,073 | $ | 9,753 | |||||
Extended warranty - current | 2,963 | 2,969 | |||||||
Extended warranty - non-current | 19,289 | 19,211 | |||||||
Product and services - non-current | 139 | 182 | |||||||
Total deferred revenue | $ | 28,464 | $ | 32,115 | |||||
Deferred cost of revenue consisted entirely of products and services. |
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies | Commitments and Contingencies | ||||||||
Commitments | |||||||||
The Company’s principal commitments consist of obligations under operating leases for office space and non-cancelable outstanding purchase obligations. These commitments as of December 31, 2014 are disclosed in our Annual Report on Form 10-K, and have not changed materially during the three months ended March 28, 2015. | |||||||||
Accrued Warranty | |||||||||
The Company provides a warranty for its hardware products. Hardware generally has a one to five-year warranty from the date of shipment. The Company accrues for potential warranty claims based on the Company’s historical claims experience. The adequacy of the accrual is reviewed on a periodic basis and adjusted, if necessary, based on additional information as it becomes available. | |||||||||
Changes in the Company’s warranty reserve were as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 28, | March 29, | ||||||||
2015 | 2014 | ||||||||
Balance at beginning of period | $ | 9,553 | $ | 10,856 | |||||
Warranty charged to cost of revenue | 1,068 | 909 | |||||||
Utilization of warranty | (998 | ) | (938 | ) | |||||
Balance at end of period | $ | 9,623 | $ | 10,827 | |||||
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. ("Jefferies") 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 was heard by the Court on March 23, 2015, and the court has not yet ruled on it. At the hearing the Court vacated the existing April 20, 2015 trial date and indicated it would set a new trial date after ruling on the motion requesting leave to add additional parties. | |||||||||
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. The Company has begun to pay fees and expenses of Jefferies in connection with this matter, and expects that it will make additional payments as the matter proceeds, though at this time the Company is not able to estimate the amount of any future payments. 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 that apply to this lawsuit 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. | |||||||||
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. |
Net_Loss_per_Common_Share
Net Loss per Common Share | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Loss per Common Share | Net Loss per Common Share | ||||||||
The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except per share data): | |||||||||
Three Months Ended | |||||||||
March 28, | March 29, | ||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net loss | $ | (11,930 | ) | $ | (10,027 | ) | |||
Denominator: | |||||||||
Weighted-average shares used to compute basic and diluted net loss per common share | 51,732 | 50,271 | |||||||
Basic and diluted net loss per common share | $ | (0.23 | ) | $ | (0.20 | ) | |||
Potentially dilutive shares, weighted average | 5,625 | 4,452 | |||||||
For all periods presented, unvested restricted stock awards are included in the calculation of weighted-average common shares outstanding because such shares are participating securities; however, the impact was immaterial. | |||||||||
Potentially dilutive shares are excluded from the computation of diluted net loss per common share when their effect is antidilutive. These antidilutive shares were primarily from stock options, restricted stock units and performance restricted stock awards. We have incurred a net loss for all periods presented, hence, diluted net loss per common share is the same as basic net loss per common share since the effect of all potentially dilutive securities is antidilutive. |
Stockholders_Equity_Notes
Stockholders' Equity (Notes) | 3 Months Ended | ||||
Mar. 28, 2015 | |||||
Stockholders' Equity Note [Abstract] | |||||
Stockholders' Equity | Stockholders’ Equity | ||||
Equity Incentive Plans | |||||
The Company maintains three equity incentive plans, the 2000 Stock Plan, the 2002 Stock Plan and the 2010 Equity Incentive Award Plan (together, the “Plans”). These plans were approved by the stockholders and are described in the Company’s Form 10-K filed with the SEC on March 4, 2015. The Company also maintains a Long Term Incentive Program, under the 2010 Equity Incentive Award Plan. Under the Long Term Incentive Program, certain key employees of the Company are eligible for equity awards based on the Company’s stock price performance. To date, awards granted under the Plans consist of stock options, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), and performance restricted stock units ("PRSUs"). | |||||
Stock Options | |||||
During the three months ended March 28, 2015, the Company granted 200,000 stock options at a weighted-average grant date fair value of $4.56 per share. During the three months ended March 28, 2015, 84,352 stock options were exercised at a weighted-average exercise price of $6.68 per share. As of March 28, 2015, unrecognized stock-based compensation expense of $7.5 million related to stock options, net of estimated forfeitures, was expected to be recognized over a weighted-average period of 3.3 years. | |||||
Restricted Stock Units | |||||
During the three months ended March 28, 2015, 235,000 RSUs were granted with a weighted-average grant date fair value of $9.87 per share. During the three months ended March 28, 2015, 1,500 RSUs vested, net of shares withheld at the then-current value equivalent to the employees' minimum statutory obligation for applicable income and other employment taxes, and were converted to an equivalent number of shares of common stock. Taxes withheld from employees of $4,000 were remitted to the relevant taxing authorities during the three months ended March 28, 2015. As of March 28, 2015, unrecognized stock-based compensation expense of $10.9 million related to RSUs, net of estimated forfeitures, was expected to be recognized over a weighted-average period of 2.4 years. | |||||
Performance Restricted Stock Units | |||||
In 2012, the Company commenced granting PRSUs to its executives with two-year and three-year performance periods. The performance criterion is based on the relative total shareholder return (“TSR”) of Calix common stock as compared to the TSR of the Company’s peer group and accounted for as a market condition under ASC Topic 718, Compensation - Stock Compensation ("ASC Topic 718"). The TSR is calculated by dividing (a) the average closing trading price for the 90-day period ending on the last day of the applicable performance period by (b) the average closing trading price for the 90-day period immediately preceding the first day of the applicable performance period. This TSR is then used to derive the achievement ratio, which is then multiplied by the number of units in the grant to derive the common stock to be issued for each performance period, which may equal from zero percent (0%) to two hundred percent (200%) of the target award. | |||||
During the three months ended March 28, 2015, no PRSUs were granted. During the three months ended March 28, 2015, 147,916 PRSUs vested and were converted into 92,359 shares of common stock, net of shares withheld at the then-current value equivalent to the employees' minimum statutory obligation for applicable income and other employment taxes. Taxes withheld from employees of $0.5 million were remitted to the relevant taxing authorities during the three months ended March 28, 2015. As of March 28, 2015, unrecognized stock-based compensation expense of $0.7 million related to PRSUs, net of estimated forfeitures, was expected to be recognized over a weighted-average period of 1.0 year. | |||||
Restricted Stock Awards | |||||
During the three months ended March 28, 2015, no RSAs were granted. Upon the vesting of RSAs during the three months ended March 28, 2015, taxes withheld from employees of $31,000 were remitted to the relevant taxing authorities. As of March 28, 2015, unrecognized stock-based compensation expense of $0.3 million related to RSAs, net of estimated forfeitures, was expected to be recognized over a weighted-average period of 0.3 year. | |||||
Employee Stock Purchase Plan | |||||
The Company’s Amended and Restated Employee Stock Purchase Plan (“ESPP”) allows employees to purchase shares of the Company’s common stock through payroll deductions of up to 15 percent of their annual compensation subject to certain Internal Revenue Code limitations. In addition, no participant may purchase more than 2,000 shares of common stock in each offering period. | |||||
The offering periods under the ESPP are six-month periods commencing on June 1 and December 1 of each year. The price of common stock purchased under the plan is 85 percent of the lower of the fair market value of the common stock on the commencement date and end date of each six-month offering period. As of March 28, 2015, there were 1,890,983 shares available for issuance under the ESPP. | |||||
There were no shares purchased under the ESPP during the three months ended March 28, 2015. As of March 28, 2015, unrecognized stock-based compensation expense of $0.3 million related to the ESPP was expected to be recognized over a remaining service period of 2 months. | |||||
Stock-Based Compensation Expense | |||||
In accordance with ASC Topic 718, stock-based compensation expense associated with stock options, RSUs, PRSUs, RSAs, and purchase rights under the ESPP is measured at the grant date based on the fair value of the award, and is recognized, net of forfeitures, as expense over the remaining requisite service period on a straight-line basis. | |||||
The Company values RSUs and RSAs at the closing market price of the Company’s common stock on the date of grant. | |||||
The fair value of PRSUs with a market condition is estimated on the date of award, using a Monte Carlo simulation model to estimate the TSR of the Company's stock in relation to the peer group over each performance period. Compensation cost on PRSUs with a market condition is not adjusted for subsequent changes in the Company's stock performance or the level of ultimate vesting. | |||||
The Company estimates the fair value of stock options at the grant date using the Black-Scholes option-pricing model. This model requires the use of the following assumptions: | |||||
(i) | Expected volatility of the Company's common stock - The Company computes its expected volatility assumption based on a blended volatility (50% historical volatility and 50% implied volatility from traded options on the Company's common stock). The selection of a blended volatility assumption was based upon the Company's assessment that a blended volatility is more representative of the Company's future stock price trend as it weighs the historical volatility with the future implied volatility. | ||||
(ii) | Expected life of the option award - Represents the weighted-average period that the stock options are expected to remain outstanding. The Company’s computation of expected life utilizes the simplified method in accordance with Staff Accounting Bulletin No. 110 ("SAB 110") due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The mid-point between the vesting date and the expiration date is used as the expected term under this method. | ||||
(iii) | Expected dividend yield - Assumption is based on the Company's history of not paying dividends and no future expectations of dividend payouts. | ||||
(iv) | Risk-free interest rate - Based on the U.S. Treasury yield curve in effect at the time of grant with maturities approximating the grant’s expected life. | ||||
The following table summarizes the weighted-average assumptions used in estimating the grant-date fair value of stock options in the periods indicated: | |||||
Three Months Ended | |||||
28-Mar-15 | March 29, | ||||
2014 | |||||
Expected volatility | 52% | 54% | |||
Expected life (years) | 6.25 | 6.15 | |||
Expected dividend yield | — | — | |||
Risk-free interest rate | 1.56% | 1.91% | |||
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 terminated 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 was $0.6 million, which was recognized on a straight-line basis over the remaining service period through the Termination Date. During the three months ended March 29, 2014, $0.1 million of the total fair value has been recognized in general and administrative expenses. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Notes) | 3 Months Ended | |||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 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). | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
28-Mar-15 | 29-Mar-14 | |||||||||||||||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | |||||||||||||||||||
Balance at beginning of period | $ | (58 | ) | $ | 138 | $ | 80 | $ | — | $ | 190 | $ | 190 | |||||||||||
Other comprehensive income (loss) | 39 | (30 | ) | 9 | — | 11 | 11 | |||||||||||||||||
Balance at end of period | $ | (19 | ) | $ | 108 | $ | 89 | $ | — | $ | 201 | $ | 201 | |||||||||||
Realized gains and losses on sales of available-for-sale marketable securities, if any, are reclassified from accumulated other comprehensive income (loss) to "Other income (expense)" in our Condensed Consolidated Statements of Comprehensive Loss. |
Credit_Facility_Notes
Credit Facility (Notes) | 3 Months Ended |
Mar. 28, 2015 | |
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 any outstanding letters of credit with Silicon Valley Bank. During the three months ended March 28, 2015, Silicon Valley Bank subsequently released the $0.3 million cash restricted for collateralizing the outstanding letters of credit reported as "restricted cash" in our Condensed Consolidated Balance Sheet as of December 31, 2014. | |
On July 29, 2013, the Company entered into a credit agreement with Bank of America, N.A. The credit agreement is structured such that other financial institutions can at a later time become party to the credit agreement through an amendment via a syndication process (collectively, together with Bank of America, N.A., the "Lenders"). The credit agreement provides for a revolving facility in the aggregate principal amount of up to $50.0 million, which includes a $20.0 million sublimit for the issuance of letters of credit and a $10.0 million sublimit for a swingline facility. Subject to customary conditions, up to $25.0 million of the revolving facility may be converted to a term loan facility at any time prior to the maturity of the revolving facility. The revolving facility matures on July 29, 2016, but may be extended up to two times (each extension for an additional one-year period) upon mutual agreement of the Company and the Lenders. The credit facility is secured by substantially all of our assets, including our intellectual property. Proceeds of the credit facility may be used for general corporate purposes and permitted acquisitions. | |
Loans under the credit facility bear interest at an annual rate equal to the base rate plus 0.75% to 1.25% or LIBOR plus 2.00% to 2.50% based on a leverage ratio of consolidated funded indebtedness to consolidated Adjusted EBITDA (customarily defined). Interest on the revolving facility is due quarterly, and any outstanding interest and principal is due on the maturity date of the revolving facility. The Company is required to repay principal on a term loan in twenty equal quarterly payments from the date the Company enters into a term loan, and all outstanding principal and accrued interest is due on the revolving facility maturity date. Swingline loans must be repaid on the earlier of (i) ten business days after a loan is made and (ii) the revolving facility maturity date. The Company is also required to pay commitment fees of 0.25% per year on any unused portions of this facility. | |
The credit facility includes affirmative and negative covenants applicable to the Company that are typical for credit facilities of this type. Furthermore, the credit agreement requires us to maintain certain financial covenants, including a maximum consolidated leverage ratio, and a minimum consolidated liquidity ratio of cash, cash equivalents and accounts receivable to consolidated funded indebtedness. As of March 28, 2015, 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 March 28, 2015, 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 and are included within "other assets" in our Condensed Consolidated Balance Sheets. As of March 28, 2015, unamortized debt issuance costs were $0.1 million. |
Income_Taxes_Notes
Income Taxes (Notes) | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | Income Taxes | ||||||||
The following table presents the provision for income taxes from continuing operations and the effective tax rates for the periods indicated (in thousands, except percentages): | |||||||||
Three Months Ended | |||||||||
March 28, | March 29, | ||||||||
2015 | 2014 | ||||||||
Provision for income taxes | $ | 91 | $ | 110 | |||||
Effective tax rate | (0.8 | )% | (1.1 | )% | |||||
The income tax provision for the first three months of 2015 consisted primarily of foreign income taxes. The effective tax rate for the three months ended March 28, 2015 was determined using an estimated annual effective tax rate adjusted for discrete items, if any, that occurred in the quarter. The Company’s effective tax rate for the first three months of 2015 is impacted by the change in valuation allowances against deferred tax assets and foreign income tax expense. | |||||||||
The income tax provision for the first three months of 2014 primarily consisted of state and foreign income taxes. The effective tax rate for the three months ended March 29, 2014 was determined by estimating the tax provision using the discrete method provided in ASC Topic740. The discrete method was used because of unpredictable trends in the Company’s U.S. net income or loss position. The Company’s effective tax rate for the first three months of 2014 was impacted by the change in valuation allowances against deferred tax assets and state income tax expense. | |||||||||
ASC Topic 740, Income Taxes, ("ASC Topic 740"), provides for the recognition of deferred tax assets if realization of such assets is more likely than not. The Company has established and continues to maintain a full valuation allowance against its net deferred tax assets, with the exception of certain foreign deferred tax assets, as the Company does not believe that realization of those foreign assets is more likely than not. | |||||||||
Our effective tax rate may be subject to fluctuation during the year as new information is obtained, which may affect the assumptions used to estimate the annual effective tax rate, including factors such as the mix of forecasted pre-tax earnings in the various jurisdictions in which we operate, valuation allowances against deferred tax assets, the recognition or de-recognition of tax benefits related to uncertain tax positions, and changes in or the interpretation of tax laws in jurisdictions where we conduct business. |
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 28, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
On April 26, 2015, the Company's Board of Directors approved a program to repurchase up to $40 million of its common stock from time to time. | |
The buyback authorization would equate to approximately 4.8 million shares in the aggregate, or approximately 9% of our common stock issued and outstanding as of February 25, 2015, assuming that the Company repurchases the entire authorized amount at a price per share of $8.42, the closing trading price per share of our common stock on April 27, 2015. | |
Stock may be purchased under this program in open market or private transactions, through block trades, and/or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Exchange Act. Any open market purchases will be made in accordance with the limitations set out in Rule 10b-18 of the Exchange Act. The decision to consummate any repurchases (including any decision to adopt a 10b5-1 plan for this purpose) will be made at management’s discretion at prices management considers to be attractive and in the best interests of the company and its stockholders. | |
The repurchase program may be suspended, terminated or modified at any time. The program does not oblige the Company to purchase any particular number of shares. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 28, 2015 | |
Accounting Policies [Abstract] | |
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 FASB has indicated that there may be certain future changes to the revenue guidance which could impact the timing of adoption and, on April 29, 2015, the FASB issued an exposure draft proposing the deferral of the effective date by one year. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. |
Cash_Cash_Equivalents_and_Mark1
Cash, Cash Equivalents and Marketable Securities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||
Summary of cash and cash equivalents | Cash, cash equivalents and marketable securities consisted of the following (in thousands): | ||||||||||||||||
March 28, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 13,838 | $ | 17,866 | |||||||||||||
Money market funds | 15,780 | 30,963 | |||||||||||||||
Total cash and cash equivalents | 29,618 | 48,829 | |||||||||||||||
Marketable securities: | |||||||||||||||||
Corporate debt securities | 63,063 | 61,050 | |||||||||||||||
Commercial paper | 5,094 | 1,800 | |||||||||||||||
Total marketable securities | 68,157 | 62,850 | |||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 97,775 | $ | 111,679 | |||||||||||||
Amortized cost and fair value of marketable securities | As of March 28, 2015, the amortized cost and fair value of marketable securities were as follows (in thousands): | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||
Corporate debt securities | $ | 63,082 | $ | 8 | $ | (27 | ) | $ | 63,063 | ||||||||
Commercial paper | 5,094 | — | $ | — | 5,094 | ||||||||||||
Total marketable securities | $ | 68,176 | $ | 8 | $ | (27 | ) | $ | 68,157 | ||||||||
As of December 31, 2014, the amortized cost and fair value of marketable securities 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 March 28, 2015, 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 | $ | 66,132 | $ | 66,113 | |||||||||||||
Due in 1-2 years | $ | 2,044 | $ | 2,044 | |||||||||||||
Total marketable securities | $ | 68,176 | $ | 68,157 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||
Mar. 28, 2015 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Summary of fair values of financial assets | The following table sets forth the Company's financial assets measured at fair value on a recurring basis as of March 28, 2015 and December 31, 2014, based on the three-tier fair value hierarchy (in thousands): | ||||||||||||
As of March 28, 2015 | Level 1 | Level 2 | Total | ||||||||||
Money market funds | $ | 15,780 | $ | — | $ | 15,780 | |||||||
Corporate debt securities | — | 63,063 | 63,063 | ||||||||||
Commercial paper | — | 5,094 | 5,094 | ||||||||||
Total | $ | 15,780 | $ | 68,157 | $ | 83,937 | |||||||
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 | |||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of intangible assets | Intangible assets are carried at cost, less accumulated amortization. The details of intangible assets as of March 28, 2015 and December 31, 2014 are disclosed in the following table (in thousands): | ||||||||||||||||||||||||
28-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Core developed technology | $ | 68,964 | $ | (57,782 | ) | $ | 11,182 | $ | 68,964 | $ | (55,694 | ) | $ | 13,270 | |||||||||||
Customer relationships | 54,740 | (45,383 | ) | 9,357 | 54,740 | (42,831 | ) | 11,909 | |||||||||||||||||
Total intangible assets, excluding goodwill | $ | 123,704 | $ | (103,165 | ) | $ | 20,539 | $ | 123,704 | $ | (98,525 | ) | $ | 25,179 | |||||||||||
Expected future amortization | As of March 28, 2015, expected future amortization expense for the fiscal years indicated is as follows (in thousands): | ||||||||||||||||||||||||
Period | Expected | ||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||
Remainder of 2015 | $ | 13,921 | |||||||||||||||||||||||
2016 | 5,805 | ||||||||||||||||||||||||
2017 | 813 | ||||||||||||||||||||||||
Total | $ | 20,539 | |||||||||||||||||||||||
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Summary of accounts receivable, net | Accounts receivable, net consisted of the following (in thousands): | ||||||||
March 28, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accounts receivable | $ | 39,819 | $ | 31,493 | |||||
Allowance for doubtful accounts | (330 | ) | (241 | ) | |||||
Product return reserve | (489 | ) | (508 | ) | |||||
Accounts receivable, net | $ | 39,000 | $ | 30,744 | |||||
Summary of inventory | Inventory consisted of the following (in thousands): | ||||||||
March 28, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 2,706 | $ | 3,180 | |||||
Finished goods | 37,931 | 43,573 | |||||||
Total inventory | $ | 40,637 | $ | 46,753 | |||||
Summary of property and equipment, net | Property and equipment, net consisted of the following (in thousands): | ||||||||
March 28, | December 31, | ||||||||
2015 | 2014 | ||||||||
Test equipment | $ | 41,755 | $ | 40,766 | |||||
Computer equipment and software | 27,440 | 30,355 | |||||||
Furniture and fixtures | 1,852 | 1,852 | |||||||
Leasehold improvements | 6,541 | 6,550 | |||||||
Total | 77,588 | 79,523 | |||||||
Accumulated depreciation and amortization | (58,185 | ) | (59,379 | ) | |||||
Property and equipment, net | $ | 19,403 | $ | 20,144 | |||||
Summary of accrued liabilities | Accrued liabilities consisted of the following (in thousands): | ||||||||
March 28, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accrued compensation and related benefits | $ | 15,977 | $ | 15,782 | |||||
Accrued warranty | 9,623 | 9,553 | |||||||
Accrued professional and consulting fees | 6,235 | 5,860 | |||||||
Accrued customer rebates | 1,513 | 851 | |||||||
Accrued business travel expenses | 1,079 | 1,414 | |||||||
Accrued excess and obsolete inventory at contract manufacturers | 821 | 888 | |||||||
Sales and use tax payable | 820 | 397 | |||||||
Accrued rent reserve | 394 | 412 | |||||||
Accrued freight | 355 | 303 | |||||||
Income taxes payable | 118 | 269 | |||||||
Accrued other | 2,512 | 3,714 | |||||||
Total accrued liabilities | $ | 39,447 | $ | 39,443 | |||||
Summary of deferred revenue | Deferred revenue consisted of the following (in thousands): | ||||||||
March 28, | 31-Dec-14 | ||||||||
2015 | |||||||||
Product and services - current | $ | 6,073 | $ | 9,753 | |||||
Extended warranty - current | 2,963 | 2,969 | |||||||
Extended warranty - non-current | 19,289 | 19,211 | |||||||
Product and services - non-current | 139 | 182 | |||||||
Total deferred revenue | $ | 28,464 | $ | 32,115 | |||||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Product warranty activities | Changes in the Company’s warranty reserve were as follows (in thousands): | ||||||||
Three Months Ended | |||||||||
March 28, | March 29, | ||||||||
2015 | 2014 | ||||||||
Balance at beginning of period | $ | 9,553 | $ | 10,856 | |||||
Warranty charged to cost of revenue | 1,068 | 909 | |||||||
Utilization of warranty | (998 | ) | (938 | ) | |||||
Balance at end of period | $ | 9,623 | $ | 10,827 | |||||
Net_Loss_per_Common_Share_Tabl
Net Loss per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of net loss per share | The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except per share data): | ||||||||
Three Months Ended | |||||||||
March 28, | March 29, | ||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net loss | $ | (11,930 | ) | $ | (10,027 | ) | |||
Denominator: | |||||||||
Weighted-average shares used to compute basic and diluted net loss per common share | 51,732 | 50,271 | |||||||
Basic and diluted net loss per common share | $ | (0.23 | ) | $ | (0.20 | ) | |||
Potentially dilutive shares, weighted average | 5,625 | 4,452 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||
Mar. 28, 2015 | |||||
Stockholders' Equity Note [Abstract] | |||||
Weighted-average assumptions used to estimate the fair value of stock options | The following table summarizes the weighted-average assumptions used in estimating the grant-date fair value of stock options in the periods indicated: | ||||
Three Months Ended | |||||
28-Mar-15 | March 29, | ||||
2014 | |||||
Expected volatility | 52% | 54% | |||
Expected life (years) | 6.25 | 6.15 | |||
Expected dividend yield | — | — | |||
Risk-free interest rate | 1.56% | 1.91% |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Accumulated other comprehensive income details | The table below summarizes the changes in accumulated other comprehensive income (loss) by component for the periods indicated (in thousands). | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
28-Mar-15 | 29-Mar-14 | |||||||||||||||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | |||||||||||||||||||
Balance at beginning of period | $ | (58 | ) | $ | 138 | $ | 80 | $ | — | $ | 190 | $ | 190 | |||||||||||
Other comprehensive income (loss) | 39 | (30 | ) | 9 | — | 11 | 11 | |||||||||||||||||
Balance at end of period | $ | (19 | ) | $ | 108 | $ | 89 | $ | — | $ | 201 | $ | 201 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of income taxes | The following table presents the provision for income taxes from continuing operations and the effective tax rates for the periods indicated (in thousands, except percentages): | ||||||||
Three Months Ended | |||||||||
March 28, | March 29, | ||||||||
2015 | 2014 | ||||||||
Provision for income taxes | $ | 91 | $ | 110 | |||||
Effective tax rate | (0.8 | )% | (1.1 | )% |
Cash_Cash_Equivalents_and_Mark2
Cash, Cash Equivalents and Marketable Securities (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 | Mar. 29, 2014 | Dec. 31, 2013 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $29,618,000 | $48,829,000 | $75,169,000 | $82,747,000 |
Marketable securities | 68,157,000 | 62,850,000 | ||
Total cash, cash equivalents and marketable securities | 97,775,000 | 111,679,000 | ||
Available-for-sale securities in a continuous unrealized loss position in excess of twelve months | 0 | 0 | ||
Corporate debt securities | ||||
Cash and Cash Equivalents [Line Items] | ||||
Marketable securities | 63,063,000 | 61,050,000 | ||
Commercial paper | ||||
Cash and Cash Equivalents [Line Items] | ||||
Marketable securities | 5,094,000 | 1,800,000 | ||
Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 13,838,000 | 17,866,000 | ||
Money market funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $15,780,000 | $30,963,000 |
Cash_Cash_Equivalents_and_Mark3
Cash, Cash Equivalents and Marketable Securities - Amortized Cost and Fair Value (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $68,176 | $62,908 |
Gross Unrealized Gains | 8 | 1 |
Gross Unrealized Losses | -27 | -59 |
Fair Value | 68,157 | 62,850 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 63,082 | 61,108 |
Gross Unrealized Gains | 8 | 1 |
Gross Unrealized Losses | -27 | -59 |
Fair Value | 63,063 | 61,050 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,094 | 1,800 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $5,094 | $1,800 |
Cash_Cash_Equivalents_and_Mark4
Cash, Cash Equivalents and Marketable Securities - Contractual Maturity (Details) (USD $) | Mar. 28, 2015 |
In Thousands, unless otherwise specified | |
Cash and Cash Equivalents [Abstract] | |
Marketable securities due in 1 year or less, amortized cost | $66,132 |
Marketable securities due in 1-2 years, amortized cost | 2,044 |
Marketable securities, amortized cost | 68,176 |
Marketable securities due in 1 year or less, fair value | 66,113 |
Marketable securities due in 1-2 years, fair value | 2,044 |
Marketable securities, fair value | $68,157 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $68,157 | $62,850 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 83,937 | 93,813 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 15,780 | 30,963 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 68,157 | 62,850 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 63,063 | 61,050 |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 63,063 | 61,050 |
Corporate debt securities | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Corporate debt securities | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 63,063 | 61,050 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,094 | 1,800 |
Commercial paper | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,094 | 1,800 |
Commercial paper | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,094 | 1,800 |
Money market funds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 15,780 | 30,963 |
Money market funds | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 15,780 | 30,963 |
Money market funds | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $0 | $0 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $123,704 | $123,704 |
Accumulated Amortization | -103,165 | -98,525 |
Net | 20,539 | 25,179 |
Core developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 68,964 | 68,964 |
Accumulated Amortization | -57,782 | -55,694 |
Net | 11,182 | 13,270 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 54,740 | 54,740 |
Accumulated Amortization | -45,383 | -42,831 |
Net | $9,357 | $11,909 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Expected Future Amortization (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Expected future amortization | ||
Remainder of 2015 | $13,921 | |
2016 | 5,805 | |
2017 | 813 | |
Net | $20,539 | $25,179 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Textual (Details) (USD $) | 3 Months Ended | |
Mar. 28, 2015 | Mar. 29, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated impairment loss, goodwill | $0 | |
Amortization expense | $4,640,000 | $4,640,000 |
Balance_Sheet_Details_Accounts
Balance Sheet Details - Accounts Receivable (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Summary of accounts receivable, net | ||
Accounts receivable | $39,819 | $31,493 |
Allowance for doubtful accounts | -330 | -241 |
Product return reserve | -489 | -508 |
Accounts receivable, net | $39,000 | $30,744 |
Balance_Sheet_Details_Inventor
Balance Sheet Details - Inventory (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Summary of inventory, net | ||
Raw materials | $2,706 | $3,180 |
Finished goods | 37,931 | 43,573 |
Total inventory | $40,637 | $46,753 |
Balance_Sheet_Details_Property
Balance Sheet Details - Property and Equipment, net (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Summary of property and equipment, net | ||
Property and equipment, gross | $77,588 | $79,523 |
Accumulated depreciation and amortization | -58,185 | -59,379 |
Property and equipment, net | 19,403 | 20,144 |
Test equipment | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 41,755 | 40,766 |
Computer equipment and software | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 27,440 | 30,355 |
Furniture and fixtures | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 1,852 | 1,852 |
Leasehold improvements | ||
Summary of property and equipment, net | ||
Property and equipment, gross | $6,541 | $6,550 |
Balance_Sheet_Details_Accrued_
Balance Sheet Details - Accrued Liabilities (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Summary of accrued liabilities | ||
Accrued compensation and related benefits | $15,977 | $15,782 |
Accrued warranty | 9,623 | 9,553 |
Accrued professional and consulting fees | 6,235 | 5,860 |
Accrued customer rebates | 1,513 | 851 |
Accrued business travel expenses | 1,079 | 1,414 |
Accrued excess and obsolete inventory at contract manufacturers | 821 | 888 |
Sales and use tax payable | 820 | 397 |
Accrued rent reserve | 394 | 412 |
Accrued freight | 355 | 303 |
Income taxes payable | 118 | 269 |
Accrued other | 2,512 | 3,714 |
Total accrued liabilities | $39,447 | $39,443 |
Balance_Sheet_Details_Deferred
Balance Sheet Details - Deferred Revenue (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | $9,036 | $12,722 |
Deferred revenue, noncurrent | 19,428 | 19,393 |
Deferred revenue | 28,464 | 32,115 |
Product and services | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | 6,073 | 9,753 |
Deferred revenue, noncurrent | 139 | 182 |
Extended warranty | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | 2,963 | 2,969 |
Deferred revenue, noncurrent | $19,289 | $19,211 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Textual (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 06, 2012 | Sep. 16, 2010 | Mar. 28, 2015 | Feb. 22, 2011 |
Subsidiary | ||||
Commitments and Contingencies [Line Items] | ||||
Number of subsidiaries | 2 | |||
Trading profits | $0.50 | |||
Minimum | ||||
Commitments and Contingencies [Line Items] | ||||
Warranty period | 1 year | |||
Maximum | ||||
Commitments and Contingencies [Line Items] | ||||
Warranty period | 5 years | |||
Occam Acquisition | Occam Shareholders Versus Occam and Occam Board of Directors | ||||
Commitments and Contingencies [Line Items] | ||||
Number of shares held by plaintiffs | 15,147,085 | |||
Occam Acquisition | Occam Shareholders Versus Occam and Occam Board of Directors | Minimum | ||||
Commitments and Contingencies [Line Items] | ||||
Share price, estimated in excess of merger consideration | 7.77 | |||
Occam Acquisition | Occam Shareholders Versus Occam and Occam Board of Directors | Maximum | ||||
Commitments and Contingencies [Line Items] | ||||
Share price, estimated in excess of merger consideration | 9.65 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Product Warranty Activities (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Product warranty activities [Roll Forward] | ||
Balance at beginning of period | $9,553 | $10,856 |
Warranty charged to cost of revenue | 1,068 | 909 |
Utilization of warranty | -998 | -938 |
Balance at end of period | $9,623 | $10,827 |
Net_Loss_per_Common_Share_Basi
Net Loss per Common Share - Basic and Diluted Shares Calculation (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Numerator: | ||
Net loss | ($11,930) | ($10,027) |
Denominator: | ||
Weighted-average shares used to compute basic and diluted net loss per common share | 51,732 | 50,271 |
Basic and diluted net loss per common share (in dollars per share) | ($0.23) | ($0.20) |
Potentially dilutive shares, weighted average (in shares) | 5,625 | 4,452 |
Stockholders_Equity_Weightedav
Stockholders' Equity - Weighted-average Assumptions Used to Estimate Fair Value of Stock Options (Details) (Stock options) | 3 Months Ended | |
Sep. 27, 2014 | Mar. 29, 2014 | |
Stock options | ||
Weighted-average assumptions used to estimate fair value of stock options | ||
Expected volatility | 52.00% | 54.00% |
Expected life (years) | 6 years 3 months | 6 years 55 days |
Expected dividend yield | 0.00% | 0.00% |
Risk free interest rate | 1.56% | 1.91% |
Stockholders_Equity_Textual_De
Stockholders' Equity - Textual (Details) (USD $) | 3 Months Ended | |
Mar. 28, 2015 | Mar. 29, 2014 | |
Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of equity incentive plans | 3 | |
Stock options granted | 0 | |
Stock options, weighted average grant date fair value | $4.56 | |
Stock options exercised | 84,352 | |
Weighted-average exercise price per share, stock options | $6.68 | |
Unrecognized stock-based compensation expense, stock options | $7,500,000 | |
Weighted-average amortization period | 3 years 3 months | |
Taxes paid for awards vested under equity incentive plans | 506,000 | 473,000 |
Weight of historical volatility | 50.00% | |
Weight of implied volatility | 50.00% | |
Restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average amortization period | 2 years 3 months 40 days | |
Awards granted | 235,000 | |
Weighted-average grant date fair value per share | $9.87 | |
Awards vested | 1,500 | |
Taxes paid for awards vested under equity incentive plans | 4,000 | |
Unrecognized stock-based compensation expense | 10,900,000 | |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average amortization period | 3 months 22 days | |
Awards granted | 0 | |
Taxes paid for awards vested under equity incentive plans | 31,000 | |
Unrecognized stock-based compensation expense | 300,000 | |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average amortization period | 0 years 2 months | |
Unrecognized stock-based compensation expense | 300,000 | |
ESPP, maximum employee payroll deduction percentage | 15.00% | |
ESPP, maximum number of shares per employee | 2,000 | |
ESPP, discounted purchase price percentage | 85.00% | |
Shares available for issuance under the ESPP | 1,890,983 | |
Shares issued under the ESPP | 0 | |
Performance Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average amortization period | 1 year | |
Awards granted | 0 | |
Taxes paid for awards vested under equity incentive plans | 500,000 | |
Unrecognized stock-based compensation expense | 700,000 | |
Period of average closing trading price ending on the last day of applicable performance period | 90 days | |
Period of average closing trading price preceding first day of performance period | 90 days | |
Shares converted into common stock | 147,916 | |
Performance Restricted Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 2 years | |
Target performance rate | 0.00% | |
Performance Restricted Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 3 years | |
Target performance rate | 200.00% | |
Transition And Separation Agreement with Roger Weingarth | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of accelerated stock awards | 600,000 | |
Fair value recognized for accelerated stock awards | $100,000 | |
Common Stock | Performance Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of stock issued upon conversion of units | 92,359 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | $80 | $190 |
Other comprehensive income (loss) | 9 | 11 |
Balance at end of period | 89 | 201 |
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | -58 | 0 |
Other comprehensive income (loss) | 39 | 0 |
Balance at end of period | -19 | 0 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | 138 | 190 |
Other comprehensive income (loss) | -30 | 11 |
Balance at end of period | $108 | $201 |
Credit_Facility_Textual_Detail
Credit Facility - Textual (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |
Jul. 29, 2013 | Mar. 28, 2015 | Mar. 29, 2014 | Jun. 30, 2013 | |
extention | ||||
Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $50,000,000 | |||
Maturity date | 29-Jul-16 | |||
Restricted cash released | -295,000 | 0 | ||
Initiation date | 29-Jul-13 | |||
Number of one-year period extensions | 2 | |||
Interest rate description | Loans under the credit facility bear interest at an annual rate equal to the base rate plus 0.75% to 1.25% or LIBOR plus 2.00% to 2.50% based on a leverage ratio of consolidated funded indebtedness to consolidated Adjusted EBITDA (customarily defined). | |||
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% | |||
Outstanding letters of credit | 0 | |||
Debt issuance costs incurred | 300,000 | |||
Period of amortization of debt issuance costs | 3 years | |||
Unamortized debt issuance costs | 100,000 | |||
Base Rate | Minimum | ||||
Credit Facility [Line Items] | ||||
Interest rate margin | 0.75% | |||
Base Rate | Maximum | ||||
Credit Facility [Line Items] | ||||
Interest rate margin | 1.25% | |||
LIBOR | Minimum | ||||
Credit Facility [Line Items] | ||||
Interest rate margin | 2.00% | |||
LIBOR | Maximum | ||||
Credit Facility [Line Items] | ||||
Interest rate margin | 2.50% | |||
Prior Credit Facility | ||||
Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 30,000,000 | |||
Maturity date | 30-Jun-13 | |||
Letter of Credit | ||||
Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 20,000,000 | |||
Swingline Facility Member | ||||
Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 10,000,000 | |||
Term Loan | ||||
Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $25,000,000 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $91 | $110 |
Effective tax rate | -0.80% | -1.10% |
Income_Taxes_Textual_Details
Income Taxes - Textual (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 28, 2015 |
Operating Loss Carryforwards [Line Items] | ||
U.S. federal statutory tax rate | 34.00% | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards (AMT) | $0 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event, USD $) | Apr. 26, 2015 |
Share data in Millions, except Per Share data, unless otherwise specified | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Stock repurchase authorized | $40,000,000 |
Number of shares authorized to be repurchased | 4.8 |
Number of shares authorized to be repurchased as percent of issued and outstanding stock | 9.00% |
Repurchase price per share | $8.42 |