Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 29, 2018 | Nov. 01, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CALIX, INC | |
Entity Central Index Key | 1,406,666 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 53,130,167 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 53,033 | $ 39,775 |
Accounts receivable, net | 67,671 | 80,392 |
Inventory | 30,267 | 31,529 |
Prepaid expenses and other current assets | 10,640 | 10,759 |
Total current assets | 161,611 | 162,455 |
Property and equipment, net | 21,252 | 15,681 |
Goodwill | 116,175 | 116,175 |
Other assets | 1,987 | 759 |
Total assets | 301,025 | 295,070 |
Current liabilities: | ||
Accounts payable | 32,792 | 35,977 |
Accrued liabilities | 57,052 | 49,279 |
Deferred revenue | 16,813 | 13,076 |
Line of credit | 30,000 | 30,000 |
Total current liabilities | 136,657 | 128,332 |
Long-term portion of deferred revenue | 18,108 | 20,645 |
Other long-term liabilities | 2,186 | 1,130 |
Total liabilities | 156,951 | 150,107 |
Commitments and contingencies (See Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.025 par value; 5,000 shares authorized; no shares issued and outstanding as of September 29, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $0.025 par value; 100,000 shares authorized; 58,455 shares issued and 53,125 shares outstanding as of September 29, 2018, and 56,839 shares issued and 51,509 shares outstanding as of December 31, 2017 | 1,462 | 1,421 |
Additional paid-in capital | 862,642 | 851,054 |
Accumulated other comprehensive loss | (740) | (169) |
Accumulated deficit | (679,304) | (667,357) |
Treasury stock, 5,330 shares as of September 29, 2018 and December 31, 2017 | (39,986) | (39,986) |
Total stockholders’ equity | 144,074 | 144,963 |
Total liabilities and stockholders’ equity | $ 301,025 | $ 295,070 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 29, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 58,455,000 | 56,839,000 |
Common stock, shares outstanding | 53,125,000 | 51,509,000 |
Treasury stock, shares | 5,330,000 | 5,330,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | ||
Revenue: | |||||
Revenue | $ 114,699 | $ 128,827 | $ 325,804 | $ 372,468 | |
Cost of revenue: | |||||
Cost of revenue | 61,866 | 84,194 | 180,046 | 250,135 | |
Gross profit | 52,833 | 44,633 | 145,758 | 122,333 | |
Operating expenses: | |||||
Research and development | [1] | 21,111 | 32,633 | 68,748 | 99,391 |
Sales and marketing | [1] | 20,722 | 18,448 | 61,150 | 59,306 |
General and administrative | [1] | 10,481 | 10,203 | 29,947 | 30,161 |
Restructuring charges (benefit) | (157) | 612 | 5,976 | 2,268 | |
Gain on sale of product line | 0 | 0 | (6,704) | 0 | |
Total operating expenses | 52,157 | 61,896 | 159,117 | 191,126 | |
Income (loss) from operations | 676 | (17,263) | (13,359) | (68,793) | |
Interest and other income (expense), net: | |||||
Interest income (expense), net | (142) | (60) | (530) | 88 | |
Other income (expense), net | 360 | (305) | 522 | (386) | |
Total interest and other income (expense), net | 218 | (365) | (8) | (298) | |
Income (loss) before provision for income taxes | 894 | (17,628) | (13,367) | (69,091) | |
Provision for income taxes | 85 | 225 | 353 | 1,075 | |
Net income (loss) | $ 809 | $ (17,853) | $ (13,720) | $ (70,166) | |
Net income (loss) per common share: | |||||
Basic (in dollars per share) | $ 0.02 | $ (0.35) | $ (0.26) | $ (1.40) | |
Diluted (in dollars per share) | $ 0.02 | $ (0.35) | $ (0.26) | $ (1.40) | |
Weighted-average number of shares used to compute net loss per common share: | |||||
Basic (in shares) | 53,082 | 50,336 | 52,330 | 49,960 | |
Diluted (in shares) | 53,828 | 50,336 | 52,330 | 49,960 | |
Other comprehensive income (loss), net of tax: | |||||
Unrealized gains on available-for-sale marketable securities, net | $ 0 | $ 4 | $ 0 | $ 3 | |
Foreign currency translation adjustments, net | (343) | 116 | (572) | 309 | |
Total other comprehensive income (loss), net of tax | (343) | 120 | (572) | 312 | |
Comprehensive income (loss) | 466 | (17,733) | (14,292) | (69,854) | |
Systems | |||||
Revenue: | |||||
Revenue | 104,992 | 106,442 | 300,846 | 305,395 | |
Cost of revenue: | |||||
Cost of revenue | [1] | 54,354 | 55,494 | 160,350 | 171,166 |
Services | |||||
Revenue: | |||||
Revenue | 9,707 | 22,385 | 24,958 | 67,073 | |
Cost of revenue: | |||||
Cost of revenue | [1] | $ 7,512 | $ 28,700 | $ 19,696 | $ 78,969 |
[1] | Includes stock-based compensation as follows: Three and Six Months Ended September 29, 2018 and September 30, 2017; Cost of revenue: Products - $123, $137, $376, $349 ; Services - $89, $69, $257, $200; Research and development - $800, $1,215, $2,597, $3,663; Sales and marketing - $830, $816, $2,465, $2,581; General administrative - $657, $759, $2,105, $2,521; |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Systems | ||||
Stock-based compensation | $ 123 | $ 137 | $ 376 | $ 349 |
Services | ||||
Stock-based compensation | 89 | 69 | 257 | 200 |
Research and development | ||||
Stock-based compensation | 800 | 1,215 | 2,597 | 3,663 |
Sales and marketing | ||||
Stock-based compensation | 830 | 816 | 2,465 | 2,581 |
General and administrative | ||||
Stock-based compensation | $ 657 | $ 759 | $ 2,105 | $ 2,521 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Operating activities: | ||
Net loss | $ (13,720) | $ (70,166) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 7,800 | 9,314 |
Depreciation and amortization | 7,092 | 7,632 |
Amortization of intangible assets | 0 | 813 |
Loss on retirement of property and equipment | 311 | 148 |
Gain on sale of product line | (6,704) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 13,213 | 7,109 |
Inventory | (755) | 8,224 |
Prepaid expenses and other assets | (540) | 11,584 |
Accounts payable | (5,096) | 5,543 |
Accrued liabilities | 3,652 | (10,132) |
Deferred revenue | 398 | 1,310 |
Other long-term liabilities | (431) | (4) |
Net cash provided by (used) in operating activities | 5,220 | (28,625) |
Investing activities: | ||
Purchases of property and equipment | (5,561) | (6,786) |
Purchases of marketable securities | 0 | (8,732) |
Sales of marketable securities | 0 | 5,051 |
Maturities of marketable securities | 0 | 24,841 |
Proceeds from sale of product line | 10,350 | 0 |
Net cash provided by investing activities | 4,789 | 14,374 |
Financing activities: | ||
Proceeds from exercise of stock options | 79 | 29 |
Proceeds from employee stock purchase plans | 3,806 | 673 |
Taxes paid for awards vested under equity incentive plan | (53) | (2,743) |
Proceeds from line of credit | 404,763 | 68,534 |
Repayment of line of credit | (404,763) | (38,534) |
Payments to originate or amend the line of credit | (115) | (186) |
Net cash provided by financing activities | 3,717 | 27,773 |
Effect of exchange rate changes on cash and cash equivalents | (468) | 303 |
Net increase in cash and cash equivalents | 13,258 | 13,825 |
Cash and cash equivalents at beginning of period | 39,775 | 50,359 |
Cash and cash equivalents at end of period | $ 53,033 | $ 64,184 |
Company and Basis of Presentati
Company and Basis of Presentation | 9 Months Ended |
Sep. 29, 2018 | |
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” or the “Company”) was incorporated in August 1999, and is a Delaware corporation. The Company is a leading global provider of cloud and software platforms, systems and services required to deliver the unified access network and smart home and business services of tomorrow. The Company’s platforms and services help its customers to build next generation networks by embracing a DevOps operating model, optimizing the subscriber experience by leveraging big data analytics and turn the complexity of the smart home and business into new revenue streams. The Company's cloud and software platforms, systems and services enable communication service providers (“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 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. 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 intercompany balances and transactions have been eliminated in consolidation. The Condensed Consolidated Balance Sheet at December 31, 2017 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 Annual Report on Form 10-K for the year ended December 31, 2017 . The Company’s fiscal year begins on January 1 st and ends on December 31 st . Quarterly periods are based on a 4-4-5 calendar with the first, second and third quarters ending on the 13th Saturday of each fiscal period. As a result, the Company had one fewer day in the nine months ended September 29, 2018 than in the nine months ended September 30, 2017 . 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. Liquidity and Capital Resources Since its inception, the Company has incurred significant losses, and as of September 29, 2018 , the Company had an accumulated deficit of $679.3 million . Based on its current operating plan and operating cash flows, management plans to finance its future operations and capital expenditures with existing cash and cash equivalents and its existing credit facility with Silicon Valley Bank (“SVB”), which it believes will be sufficient to fund its operations and capital expenditures through at least the next twelve months. See Note 6 for more information on the Company's credit facility with SVB. The Company may also need to seek other sources of liquidity, including but not limited to the sale of equity or incremental borrowings, to support its working capital needs. However, there can be no assurances that such capital will be available on terms which are acceptable to the Company or at all or that the Company will achieve profitable operations. If the Company is unable to generate sufficient cash flows or obtain other sources of liquidity, the Company will be forced to limit its development activities, reduce its investment in growth initiatives and institute cost-cutting measures, all of which may adversely impact the Company’s business and growth. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The Company’s significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2017 . The Company’s significant accounting policies did not change during the nine months ended September 29, 2018 , except for those impacted by the newly adopted accounting standard below. Newly Adopted Accounting Standard Revenue from Contracts with Customers 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 Company determines revenue recognition through the following steps: identification of the contract, or contracts, with a customer; identification of the performance obligations in the contract; determination of the transaction price; allocation of the transaction price to the performance obligations in the contract; and recognition of revenue when, or as, the Company satisfies a performance obligation. 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 new standard permits adoption by using either (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. On January 1, 2018, the Company adopted Topic 606 and Subtopic 340-40 using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Accordingly, results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while results for prior periods have not been restated and continues to be reported under the accounting standards in effect for those periods. The Company recognized the cumulative effect of initially applying the standards as an adjustment to the opening balance of accumulated deficit of $1.8 million as of January 1, 2018, with the impact primarily relating to deferring the costs of obtaining contracts (sales commissions) and the upfront recognition of software license revenue. The impact to revenue of applying Topic 606 for the three and nine months ended September 29, 2018 was an increase of $0.9 million and $4.8 million , respectively. Significant changes to the Company’s accounting policies as a result of adopting Topic 606 are discussed below. Revenue Recognition Revenue is recognized when a performance obligation is satisfied, which occurs when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s hardware products contain both software and non-software components that function together to deliver the products’ essential functionality and therefore constitutes a single performance obligation as the promise to transfer the individual software and non-software components is not separately identifiable and, therefore, not distinct. The Company’s contracts may include multiple performance obligations. For such arrangements, the Company allocates the contract’s transaction price to each performance obligation using the relative stand-alone selling price of each distinct good or service in the contract. The Company generally determines stand-alone selling prices based on the prices charged to customers or its best estimate of stand-alone selling price. The Company’s estimate of stand-alone selling price is established considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, characteristics of targeted customers and pricing practices. The determination of estimated stand-alone selling price is made through consultation with and formal approval by management, taking into consideration the go-to-market strategy. For certain revenue arrangements involving delivery of both systems and professional services, each is considered a distinct performance obligation. Systems revenue is recognized at a point in time when management has determined that control over systems has transferred to the customer, which is generally when legal title has transferred to the customer. For the same revenue arrangements, management believes that control of the associated professional services is transferred to the customer over time. As such, professional services revenue is recognized over the period in which the services are provided using a cost input measure. Prior to adoption of Topic 606, the Company recognized revenue (and corresponding cost of revenue) for systems and associated professional services under the same revenue arrangement as services were delivered and milestones were accepted by the customer and as the systems were installed or delivered to the customer. Accordingly, the Company now recognizes revenue when control of the systems and services has been transferred to the customer, which may be earlier than system installation or customer acceptance, in accordance with the agreed-upon specifications in the contract. The Company derives revenue from contracts with customers primarily from the following and categorizes its revenue as follows: • Systems include revenue from the sale of access and premises systems, software platform licenses and cloud-based software subscriptions. • Services include revenue from professional services, customer support, software- and cloud-based maintenance, extended warranty subscriptions, training and managed services. The following is a summary of revenue disaggregated by geographic region based upon the location of the customers (in thousands): Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 (1) September 29, 2018 September 30, 2017 (1) United States $ 99,224 $ 117,686 $ 281,304 $ 332,333 Caribbean 1,794 2,042 4,468 6,755 Canada 3,321 2,289 7,861 7,796 Europe 2,137 1,598 7,108 4,366 Other 8,223 5,212 25,063 21,218 Total $ 114,699 $ 128,827 $ 325,804 $ 372,468 (1) Fiscal 2017 revenue amounts are accounted for under Topic 605. Concentration of Customer Risk The Company had one customer that accounted for more than 10% of its total revenue for the three and nine months ended September 29, 2018 . The Company had one customer that accounted for more than 10% of its total revenue for the three months ended September 30, 2017 and two customers that each accounted for more than 10% of its total revenue for the nine months ended September 30, 2017 . The one customer represented 21% and 19% of the Company’s total revenue for the three and nine months ended September 29, 2018 , respectively. The two customers together represented 41% and 43% of the Company’s total revenue for the three and nine months ended September 30, 2017 , respectively. The one customer represented more than 10% of the Company’s accounts receivable as of December 31, 2017 . Deferred Revenue Deferred revenue results from transactions where the Company billed the customer for products or services and when cash payments are received or due prior to transferring control of the promised goods or services to the customer. The increase in the deferred revenue balance for the three and nine months ended September 29, 2018 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $5.3 million and $10.5 million of revenue recognized that was included in the deferred revenue balance at the beginning of each period, respectively. Revenue allocated to remaining performance obligations represent contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This amount was $34.9 million as of the end of the third quarter of 2018, and the Company expects to recognize 48.1% of such revenue over the next 12 months and the remainder thereafter. Payment terms to customers typically range from net 30 to net 90 days and vary by the type and location of customer and the products or services offered. The period between the transfer of control of the promised good or service to a customer and when payment is due is not significant. Contract Costs In connection with the adoption of Topic 606 on January 1, 2018, the Company also adopted the guidance in ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, with respect to capitalization and amortization of incremental costs of obtaining a contract. The new cost guidance requires the capitalization of all incremental costs incurred to obtain a contract with a customer that it would not have incurred if the contract had not been obtained, provided it expects to recover the costs. As a result of this new guidance, the Company capitalizes certain sales commissions related primarily to extended warranty and Calix Cloud products for which the expected amortization period is greater than one year. The Company expects that sales commissions as a result of obtaining customer contracts are recoverable, and therefore the Company defers and capitalizes them as contract costs. Capitalized commissions are amortized as sales and marketing expenses over the period that the related revenue is recognized, which typically range from three to ten years for extended warranty and cloud offerings. The Company classifies the unamortized portion of deferred commissions as current or noncurrent based on the timing of when the Company expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and other assets, respectively, in the Company’s Condensed Consolidated Balance Sheets. As of September 29, 2018 , the unamortized balance of deferred commissions was $0.8 million . For the three and nine ended September 29, 2018 , the amount of amortization was less than $0.1 million , and there was no impairment loss in relation to the costs capitalized. Practical Expedients The Company expenses sales commissions as sales and marketing expenses when incurred if the expected amortization period is one year or less. This applies generally to all transactions other than extended warranty contracts and Calix Cloud products. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Cumulative Effect of Adoption The cumulative effect of changes made to the Condensed Consolidated January 1, 2018 Balance Sheet was as follows (in thousands): Balance at December 31, 2017 Adjustments Balance at January 1, 2018 Accounts receivable, net $ 80,392 $ 491 $ 80,883 Prepaid expenses and other current assets 10,759 (245 ) 10,514 Other assets 759 698 1,457 Total assets 295,070 944 296,014 Deferred revenue 13,076 (829 ) 12,247 Total liabilities 150,107 (829 ) 149,278 Accumulated deficit (667,357 ) 1,773 (665,584 ) Total liabilities and stockholders’ equity 295,070 944 296,014 The impact of adopting the new revenue standard on the Company’s consolidated financial statements as of and for the three and nine months ended September 29, 2018 were as follows (in thousands): Condensed Consolidated Balance Sheet As of September 29, 2018 (Unaudited) As Reported Adjustments Balances Without Adoption of Topic 606 Accounts receivable, net $ 67,671 $ (3,066 ) $ 64,605 Prepaid expenses and other current assets 10,640 3,451 14,091 Other assets 1,987 (599 ) 1,388 Total assets 301,025 (214 ) 300,811 Accrued liabilities 57,052 (595 ) 56,457 Deferred revenue 34,921 3,677 38,598 Total liabilities 156,951 3,082 160,033 Accumulated deficit (679,304 ) (3,296 ) (682,600 ) Total liabilities and stockholders’ equity 301,025 (214 ) 300,811 Condensed Consolidated Statement of Comprehensive Income (Loss) Three Months Ended September 29, 2018 (Unaudited) As Reported Adjustments Balances Without Adoption of Topic 606 Revenue: Systems $ 104,992 $ (401 ) $ 104,591 Services 9,707 (481 ) 9,226 Total revenue 114,699 (882 ) 113,817 Cost of revenue: Systems 54,354 (292 ) 54,062 Services 7,512 (605 ) 6,907 Total cost of revenue 61,866 (897 ) 60,969 Gross profit 52,833 15 52,848 Sales and marketing 20,722 (14 ) 20,708 Net income 809 29 838 Nine Months Ended September 29, 2018 (Unaudited) As Reported Adjustments Balances Without Adoption of Topic 606 Revenue: Systems $ 300,846 $ (3,596 ) $ 297,250 Services 24,958 (1,233 ) 23,725 Total revenue 325,804 (4,829 ) 320,975 Cost of revenue: Systems 160,350 (2,190 ) 158,160 Services 19,696 (1,070 ) 18,626 Total cost of revenue 180,046 (3,260 ) 176,786 Gross profit 145,758 (1,569 ) 144,189 Sales and marketing 61,150 (46 ) 61,104 Net loss (13,720 ) (1,523 ) (15,243 ) Recent Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires recognition of an asset and liability for lease arrangements longer than twelve months. ASU 2016-02 will be effective for the Company beginning in the first quarter of 2019. Early application is permitted, and the standard can be adopted using either a modified retrospective approach whereby the Company would recognize and measure leases at the beginning of the earliest period presented, or using the effective date approach whereby the Company would initially account for the impact of the adoption with a cumulative-effect adjustment to the January 1, 2019 financial statements. The effective date approach will eliminate the need to restate amounts presented prior to January 1, 2019. The Company is not planning to early adopt, and accordingly, it will adopt the new standard effective January 1, 2019 using the effective date approach. The Company is currently assessing the potential impact of adopting this new guidance on its consolidated financial statements. Income taxes On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118") which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (the “Tax Act”). SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes, for the year ended December 31, 2017. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. The Company has not completed its accounting for tax reform with respect to the year ended December 31, 2017 relating to the calculation of the transition tax. The Company is still within the measurement period as of the third quarter of 2018 and is reviewing the earnings and profits of its material foreign subsidiaries to determine if a true up of the transition tax entry recorded at December 31, 2017 will be needed. Cloud Computing Costs In August 2018, the FASB issued ASU No. 2018-15, Intangibles (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new standard also requires customers to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. This new standard becomes effective for the Company in the first quarter of 2020, with early adoption permitted. This new standard can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently assessing the potential impact of adopting this new guidance on its consolidated financial statements. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 29, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consisted of the following (in thousands): September 29, December 31, Cash and cash equivalents: Cash $ 49,213 $ 35,999 Money market funds 3,820 3,776 $ 53,033 $ 39,775 The carrying amounts of the Company’s money market funds approximate their fair values due to their nature, duration and short maturities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures its cash equivalents and marketable securities at fair value on a recurring basis. 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. The Company utilizes the following three-tier value hierarchy which prioritizes the inputs used in measuring fair value: 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. As of September 29, 2018 and December 31, 2017 , the Company had money market funds of $3.8 million for each period, and each was classified as a level 1 financial asset. 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 Company had no level 2 or level 3 financial assets. |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Sep. 29, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Accounts receivable, net consisted of the following (in thousands): September 29, December 31, Accounts receivable $ 68,284 $ 81,793 Allowance for doubtful accounts (613 ) (579 ) Product return reserve (1) — (822 ) $ 67,671 $ 80,392 (1) With adoption of Topic 606 on January 1, 2018, the product return reserve is considered a contract liability and has been reclassified to accrued liabilities. Inventory consisted of the following (in thousands): September 29, December 31, Raw materials $ 1,554 $ 1,211 Finished goods 28,713 30,318 $ 30,267 $ 31,529 Property and equipment, net consisted of the following (in thousands): September 29, December 31, Test equipment $ 44,040 $ 39,952 Computer equipment and software 39,833 32,175 Furniture and fixtures 2,869 2,714 Leasehold improvements 5,176 6,029 Total 91,918 80,870 Accumulated depreciation and amortization (70,666 ) (65,189 ) $ 21,252 $ 15,681 Accrued liabilities consisted of the following (in thousands): September 29, December 31, Accrued compensation and related benefits $ 22,623 $ 15,563 Accrued warranty and retrofit 8,660 8,708 Accrued professional and consulting fees 7,347 9,604 Accrued excess and obsolete inventory at contract manufacturers 3,307 2,430 Accrued customer rebates/prepayments 1,977 1,432 Accrued freight 1,276 593 Accrued non-income related taxes 1,157 1,778 Accrued business events 878 1,272 Accrued insurance 665 827 Accrued restructuring charges 595 1,417 Product return reserve (1) 591 — Accrued other 7,976 5,655 $ 57,052 $ 49,279 (1) With adoption of Topic 606 on January 1, 2018, the product return reserve is considered a contract liability and has been reclassified to accrued liabilities from accounts receivable. Accrued Warranty and Retrofit The Company provides a standard warranty for its hardware products. Hardware generally has a one -, three - or five -year standard warranty from the date of shipment. Under certain circumstances, the Company also provides fixes on specifically identified performance failures for products that are outside of the standard warranty period and recognizes estimated costs related to retrofit activities upon identification of such product failures. The Company accrues for potential warranty and retrofit claims based on the Company’s historical product failure rates and historical costs incurred in correcting product failures along with other relevant information related to any specifically identified product failures. The Company’s warranty and retrofit accruals are based on estimates of losses that are probable based on information available. 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 and retrofit reserves in the periods as indicated were as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Balance at beginning of period $ 8,188 $ 9,265 $ 8,708 $ 12,214 Provision for warranty and retrofit charged to cost of revenue 1,282 2,057 4,311 5,661 Utilization of reserve (810 ) (2,868 ) (4,359 ) (9,421 ) Balance at end of period $ 8,660 $ 8,454 $ 8,660 $ 8,454 Accrued Restructuring Charges The Company adopted a restructuring plan in March 2017. This restructuring plan realigned the Company’s business, increasing its focus towards its investments in software defined access and cloud products, while reducing its expense structure in its traditional systems business. The Company began to take actions under this plan beginning in March 2017 and recognized $4.2 million of restructuring charges for the year ended December 31, 2017 consisting primarily of severance and other one-time termination benefits. Actions pursuant to this restructuring plan were complete as of December 31, 2017. The Company established a new restructuring plan in February 2018 to further realign its business resources based on the production releases of its platform offerings. The Company incurred restructuring charges of approximately $6.0 million , consisting of primarily of severance and other termination related benefits, in the first nine months of 2018. The following table summarizes the activities pursuant to the above restructuring plans (in thousands): Severance and Related Benefits Facilities Total Balance at December 31, 2017 $ 975 $ 442 $ 1,417 Restructuring charges 5,203 773 5,976 Cash payments (6,032 ) (766 ) (6,798 ) Balance at September 30, 2018 $ 146 $ 449 $ 595 Deferred revenue consisted of the following (in thousands): September 29, December 31, Current: Products and services $ 12,602 $ 9,125 Extended warranty 4,211 3,951 16,813 13,076 Long-term: Products and services 476 18 Extended warranty 17,632 20,627 18,108 20,645 $ 34,921 $ 33,721 |
Credit Agreements
Credit Agreements | 9 Months Ended |
Sep. 29, 2018 | |
Line of Credit Facility [Abstract] | |
Credit Agreements | Credit Agreements Line of Credit On August 7, 2017, the Company entered into a loan and security agreement (the “Loan Agreement”) with SVB. The Loan Agreement provides for a senior secured revolving credit facility with SVB, pursuant to which SVB agreed to make revolving advances available to the Company in a principal amount of up to $30.0 million based on a customary accounts receivable borrowing base, subject to certain exceptions for accounts originating outside the United States and certain specific accounts, which could reduce the amount available to the Company under the credit facility. The credit facility includes affirmative and negative covenants applicable to the Company and its subsidiaries. Furthermore, the Loan Agreement requires the Company to maintain a liquidity ratio at minimum levels set forth in more detail in the Loan Agreement. The credit facility also includes events of default, the occurrence and continuation of which would provide SVB with the right to demand immediate repayment of any principal and unpaid interest under the credit facility, and to exercise remedies against the Company and the collateral securing the loans under the credit facility. For the month ended November 30, 2017, the Company was not able to maintain the minimum Adjusted Quick Ratio, or AQR, (as defined in the Loan Agreement) at the level required in the Loan Agreement, which constituted an event of default. Although SVB waived this event of default effective as of November 30, 2017 and, therefore, this default did not change the Company’s ability to borrow under the Loan Agreement, the Company was required to amend certain covenants under the Loan Agreement. In February 2018, the Company entered into an amendment to the Loan Agreement that, among other things, amended certain affirmative financial covenants, including reductions to the required minimum level of the AQR and the inclusion of an additional financial covenant related to the maintenance of Adjusted EBITDA (as defined in the Loan Agreement, as amended). In August 2018, the Company entered into a second amendment to the Loan Agreement that, among other things, extended the maturity date from August 7, 2019 to August 7, 2020, amended certain financial covenants, including covenants with respect to the AQR and the Adjusted EBITDA, and changed the compliance requirements for the AQR covenant from a monthly basis to a quarterly basis. As of September 29, 2018 , the Company was in compliance with these requirements. As of September 29, 2018 , the Company had borrowings outstanding of $30.0 million , representing the full amount available under the line of credit. Equipment Financing Arrangement In the second and third quarters of 2018, the Company entered into financing arrangements to purchase research and development equipment for approximately $2.4 million . Each agreement is to be paid over 36 months . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company leases office space under non-cancelable operating leases. Certain of the Company’s operating leases contain renewal options and rent acceleration clauses. Future minimum payments under the non-cancelable operating leases consisted of the following as of September 29, 2018 (in thousands): Period Minimum Future Lease Payments Remainder of 2018 $ 699 2019 3,828 2020 3,817 2021 3,468 2022 3,300 Thereafter 9,465 $ 24,577 The Company leases its headquarters office space in San Jose, California under a lease agreement that expires in December 2025. In March 2018, the Company entered into this lease agreement for approximately 65,000 square feet, which commenced in September 2018. The future minimum lease payments under the lease are $16.1 million and are included in the table above. The above table also includes future minimum lease payments for the Company's office facilities in Minneapolis, Minnesota; Nanjing, China; Richardson, Texas; and Petaluma and Santa Barbara, California, which expire at various dates through 2024. In June 2018, the Company entered into a co-location license agreement to lease data center space in West Jordan, Utah for a term of 84 months . The future minimum lease payments under the lease are $3.0 million and are included in the table above. In August 2018, the Company entered into a new office lease agreement for 22,000 square feet in Petaluma, California as its current office lease in Petaluma, California expires in February 2019. The lease is expected to commence in February 2019 for a term of 64 months . The future minimum lease payments of $2.8 million are included in the table above. For the three and nine months ended September 29, 2018 , total rent expense of the Company was $0.8 million and $2.4 million , respectively. For the three and nine months ended September 30, 2017 , total rent expense of the Company was $0.9 million and $2.8 million , respectively. Purchase Commitments The Company’s primary contract manufacturers place orders for component inventory in advance based upon the Company’s build forecasts in order to reduce manufacturing lead times and ensure adequate component supply. The components are used by the contract manufacturers to build the products included in the build forecasts. The Company generally does not take ownership of the components held by contract manufacturers. The Company places purchase orders with its contract manufacturers in order to fulfill its monthly finished product inventory requirements. The Company incurs a liability when the contract manufacturers convert the component inventory to a finished product and takes ownership of the inventory when transferred to the designated shipping warehouse. In the event of termination of services with a contract manufacturer, the Company may be required to purchase the remaining components inventory held by the contract manufacturer as well as any outstanding orders pursuant to the contractual provisions with such contract manufacturer. As of September 29, 2018 , the Company had approximately $59.1 million of outstanding purchase commitments for inventories to be delivered by its suppliers, including contract manufacturers, within one year. The Company has from time to time, and subject to certain conditions, reimbursed its contract manufacturers for component inventory purchases when this inventory has been rendered excess or obsolete, for example due to manufacturing and engineering change orders resulting from design changes, manufacturing discontinuation of parts by its suppliers, or in cases where inventory levels greatly exceed projected demand. The estimated excess and obsolete inventory liabilities related to such manufacturing and engineering change orders and other factors, which are included in accrued liabilities in the accompanying balance sheets, were $3.3 million and $2.4 million as of September 29, 2018 and December 31, 2017 , respectively. The Company records the related charges in cost of systems revenue in its Condensed Consolidated Statements of Comprehensive Income (Loss). In March 2018, the Company entered into an agreement with a vendor for engineering services pursuant to which the Company will be obligated to make future minimum payments of $17.5 million through 2022. Litigation From time to time, the Company is involved in various legal proceedings arising from the normal course of business activities. The Company is not currently a party to any legal proceedings that, if determined adversely to the Company, in management’s opinion, are currently expected to individually or in the aggregate have a material adverse effect on the Company’s business, operating results or financial condition taken as a whole. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 29, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Equity Incentive Plans As of September 29, 2018 , the Company maintains two equity incentive plans, 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 Annual Report on Form 10-K filed with the SEC on March 14, 2018 . Currently, the Company only grants shares from the 2010 Equity Incentive Award Plan. To date, awards granted under the Plans consist of stock options, restricted stock units (“RSUs”) and performance restricted stock units (“PRSUs”). Stock Options During the three months ended September 29, 2018 , stock options exercisable for up to an aggregate of 165,000 shares of common stock were granted with a grant date fair value of $7.00 per share. During the nine months ended September 29, 2018 , stock options exercisable for up to an aggregate of 230,000 shares of common stock were granted with a weighted average grant date fair value of $6.77 per share. In August 2017, the Company granted performance-based stock option awards exercisable for up to an aggregate of 1.2 million shares of common stock to its executives. In February 2018, the Compensation Committee of the Company’s Board of Directors concluded that the performance target was not met and all such performance-based stock options were forfeited and canceled at that time. During the three months ended September 29, 2018 , 4,993 shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $5.47 per share. During the nine months ended September 29, 2018 , 13,488 shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $5.81 per share. As of September 29, 2018 , unrecognized stock-based compensation expense of $3.3 million related to stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.7 years. Restricted Stock Units During the three months ended September 29, 2018 , no RSUs were granted. During the three months ended September 29, 2018 , 88,904 RSUs vested. During the nine months ended September 29, 2018 , 174,146 RSUs were granted with a weighted average grant date fair value of $6.66 per share. During the nine months ended September 29, 2018 , 750,286 RSUs vested. As of September 29, 2018 , unrecognized stock-based compensation expense of $4.4 million related to RSUs, net of estimated forfeitures, was expected to be recognized over a weighted-average period of 1.4 years. Performance Restricted Stock Units During the three and nine months ended September 29, 2018 , no PRSUs were granted. During the three months ended September 29, 2018 , no PRSUs vested. During the nine months ended September 29, 2018 , 87,500 PRSUs vested. As of September 29, 2018 , unrecognized stock-based compensation expense of $0.1 million related to PRSUs, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 0.4 years. Employee Stock Purchase Plans The Company maintains two employee stock purchase plans - the Amended and Restated Employee Stock Purchase Plan (the “ESPP”) and an the Amended and Restated 2017 Nonqualified Employee Stock Purchase Plan (the “Nonqualified ESPP”). The ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 15% 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 May 15 th and November 15 th of each year. The price of common stock purchased under the ESPP is 85% of the lower of the fair market value of the common stock on the commencement date and the end date of each six -month offering period. As of September 29, 2018 , there were 2.0 million shares available for issuance under the ESPP. During the three and nine months ended September 29, 2018 , 485,227 shares were purchased under the ESPP. As of September 29, 2018 , unrecognized stock-based compensation expense of $0.2 million related to the ESPP is expected to be recognized over a remaining service period of 0.1 years. Nonqualified ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 25% of their annual compensation. Eligible employees have the right to (a) purchase the maximum number of whole shares of common stock that can be purchased with the elected payroll deductions during each offering period for which the employee is enrolled at a purchase price equal to the closing price of the Company’s common stock on the last day of such offering period and (b) receive an equal number of shares of the Company’s common stock that are subject to a risk of forfeiture in the event the employee terminates employment within the one year period immediately following the purchase date. The Nonqualified ESPP provides two six -month offering periods, currently from December 21 through June 20 and June 21 through December 20 of each year. At the annual meeting of stockholders of the Company on May 16, 2018, the stockholders approved to amend certain terms and increase the number of shares of common stock issuable under the Nonqualified ESPP by 2,500,000 shares. The maximum number of shares of common stock currently authorized for issuance under the Nonqualified ESPP is 3,500,000 shares, with a maximum of 500,000 shares allocated per purchase period. During the nine months ended September 29, 2018 , shares totaling 165,311 were purchased and issued, with an additional equal number of shares issued subject to a risk of forfeiture. As of September 29, 2018 , there were 2.9 million shares available for issuance under the Nonqualified ESPP. As of September 29, 2018 , unrecognized stock-based compensation expense of $1.9 million related to the Nonqualified ESPP is expected to be recognized over a remaining service period of 1.0 year. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The table below summarizes the changes in accumulated other comprehensive loss by component for the periods indicated (in thousands): Three Months Ended September 29, 2018 September 30, 2017 Foreign Currency Translation Adjustments Unrealized Gains and Losses on Available-for-Sale Marketable Securities Foreign Currency Translation Adjustments Total Balance at beginning of period $ (397 ) $ (7 ) $ (457 ) $ (464 ) Other comprehensive income (loss) (343 ) 4 116 120 Balance at end of period $ (740 ) $ (3 ) $ (341 ) $ (344 ) Nine Months Ended September 29, 2018 September 30, 2017 Foreign Currency Translation Adjustments Unrealized Gains and Losses on Available-for-Sale Marketable Securities Foreign Currency Translation Adjustments Total Balance at beginning of period $ (169 ) $ (6 ) $ (650 ) $ (656 ) Other comprehensive income (loss) (571 ) 3 309 312 Balance at end of period $ (740 ) $ (3 ) $ (341 ) $ (344 ) Realized gains and losses on sales of available-for-sale marketable securities, if any, are reclassified from accumulated other comprehensive loss to “Other income (expense)” in the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss). |
Product Line Divestiture
Product Line Divestiture | 9 Months Ended |
Sep. 29, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Product Line Divestiture | Product Line Divestiture In February 2018, the Company sold its outdoor cabinet product line to Clearfield, Inc. (“Clearfield”) for $10.4 million in cash as well as the assumption by Clearfield of the related product warranty liabilities and open purchase order commitments with its contract manufacturer. The Company transferred $2.1 million in net inventory and agreed to solicit orders on Clearfield’s behalf on the newly transferred outdoor cabinets product lines free of charge for 15 months . The Company established a liability of $1.6 million in deferred revenue for providing this service and is amortizing this amount to service revenue over the corresponding 15-month period. The Company also recognized a $6.7 million gain for the nine months ended September 29, 2018 within operating expenses in the Condensed Consolidated Statements of Comprehensive Income (Loss). |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2018 | |
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 Nine Months Ended September 29, September 30, September 29, September 30, Provision for income taxes $ 85 $ 225 $ 353 $ 1,075 Effective tax rate 9.5 % (1.3 )% (2.6 )% (1.6 )% The income tax provision for the three and nine months ended September 29, 2018 and September 30, 2017 consisted primarily of foreign and state income taxes. The effective tax rate for the three and nine months ended September 29, 2018 and September 30, 2017 was determined using an estimated annual effective tax rate adjusted for discrete items, if any, that occurred during the respective periods. The Company’s effective tax rate for the three and nine months ended September 29, 2018 and September 30, 2017 was impacted by the change in foreign income tax expense. Deferred tax assets are recognized if realization of such assets is more likely than not. The Company has established and continues to maintain a full valuation allowance against its net deferred tax assets, with the exception of certain foreign deferred tax assets, as the Company does not believe that realization of those assets is more likely than not . The Company’s 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 it operates, 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 it conducts business . |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Numerator: Net income (loss) $ 809 $ (17,853 ) $ (13,720 ) $ (70,166 ) Denominator: Weighted-average common shares outstanding used to compute basic net income (loss) per share 53,082 50,336 52,330 49,960 Effect of dilutive common stock equivalents 746 — — — Weighted-average common shares outstanding used to compute diluted net income (loss) per share 53,828 50,336 52,330 49,960 Net income (loss) per common share: Basic net income (loss) per common share $ 0.02 $ (0.35 ) $ (0.26 ) $ (1.40 ) Diluted net income (loss) per common share $ 0.02 $ (0.35 ) $ (0.26 ) $ (1.40 ) Potentially dilutive shares, weighted average 2,513 5,741 6,032 5,704 Potentially dilutive shares have been excluded from the computation of diluted net income (loss) per common share when their effect is antidilutive. These antidilutive shares were primarily from stock options, restricted stock units and performance restricted stock units. For each of the periods presented where the Company reported a net loss, the effect of all potentially dilutive securities would be antidilutive, and as a result diluted net loss per common share is the same as basic net loss per common share. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Newly Adopted Accounting Standard Revenue from Contracts with Customers 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 Company determines revenue recognition through the following steps: identification of the contract, or contracts, with a customer; identification of the performance obligations in the contract; determination of the transaction price; allocation of the transaction price to the performance obligations in the contract; and recognition of revenue when, or as, the Company satisfies a performance obligation. 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 new standard permits adoption by using either (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. On January 1, 2018, the Company adopted Topic 606 and Subtopic 340-40 using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Accordingly, results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while results for prior periods have not been restated and continues to be reported under the accounting standards in effect for those periods. The Company recognized the cumulative effect of initially applying the standards as an adjustment to the opening balance of accumulated deficit of $1.8 million as of January 1, 2018, with the impact primarily relating to deferring the costs of obtaining contracts (sales commissions) and the upfront recognition of software license revenue. The impact to revenue of applying Topic 606 for the three and nine months ended September 29, 2018 was an increase of $0.9 million and $4.8 million , respectively. Significant changes to the Company’s accounting policies as a result of adopting Topic 606 are discussed below. Revenue Recognition Revenue is recognized when a performance obligation is satisfied, which occurs when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s hardware products contain both software and non-software components that function together to deliver the products’ essential functionality and therefore constitutes a single performance obligation as the promise to transfer the individual software and non-software components is not separately identifiable and, therefore, not distinct. The Company’s contracts may include multiple performance obligations. For such arrangements, the Company allocates the contract’s transaction price to each performance obligation using the relative stand-alone selling price of each distinct good or service in the contract. The Company generally determines stand-alone selling prices based on the prices charged to customers or its best estimate of stand-alone selling price. The Company’s estimate of stand-alone selling price is established considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, characteristics of targeted customers and pricing practices. The determination of estimated stand-alone selling price is made through consultation with and formal approval by management, taking into consideration the go-to-market strategy. For certain revenue arrangements involving delivery of both systems and professional services, each is considered a distinct performance obligation. Systems revenue is recognized at a point in time when management has determined that control over systems has transferred to the customer, which is generally when legal title has transferred to the customer. For the same revenue arrangements, management believes that control of the associated professional services is transferred to the customer over time. As such, professional services revenue is recognized over the period in which the services are provided using a cost input measure. Prior to adoption of Topic 606, the Company recognized revenue (and corresponding cost of revenue) for systems and associated professional services under the same revenue arrangement as services were delivered and milestones were accepted by the customer and as the systems were installed or delivered to the customer. Accordingly, the Company now recognizes revenue when control of the systems and services has been transferred to the customer, which may be earlier than system installation or customer acceptance, in accordance with the agreed-upon specifications in the contract. The Company derives revenue from contracts with customers primarily from the following and categorizes its revenue as follows: • Systems include revenue from the sale of access and premises systems, software platform licenses and cloud-based software subscriptions. • Services include revenue from professional services, customer support, software- and cloud-based maintenance, extended warranty subscriptions, training and managed services. The following is a summary of revenue disaggregated by geographic region based upon the location of the customers (in thousands): Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 (1) September 29, 2018 September 30, 2017 (1) United States $ 99,224 $ 117,686 $ 281,304 $ 332,333 Caribbean 1,794 2,042 4,468 6,755 Canada 3,321 2,289 7,861 7,796 Europe 2,137 1,598 7,108 4,366 Other 8,223 5,212 25,063 21,218 Total $ 114,699 $ 128,827 $ 325,804 $ 372,468 (1) Fiscal 2017 revenue amounts are accounted for under Topic 605. Concentration of Customer Risk The Company had one customer that accounted for more than 10% of its total revenue for the three and nine months ended September 29, 2018 . The Company had one customer that accounted for more than 10% of its total revenue for the three months ended September 30, 2017 and two customers that each accounted for more than 10% of its total revenue for the nine months ended September 30, 2017 . The one customer represented 21% and 19% of the Company’s total revenue for the three and nine months ended September 29, 2018 , respectively. The two customers together represented 41% and 43% of the Company’s total revenue for the three and nine months ended September 30, 2017 , respectively. The one customer represented more than 10% of the Company’s accounts receivable as of December 31, 2017 . Deferred Revenue Deferred revenue results from transactions where the Company billed the customer for products or services and when cash payments are received or due prior to transferring control of the promised goods or services to the customer. The increase in the deferred revenue balance for the three and nine months ended September 29, 2018 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $5.3 million and $10.5 million of revenue recognized that was included in the deferred revenue balance at the beginning of each period, respectively. Revenue allocated to remaining performance obligations represent contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This amount was $34.9 million as of the end of the third quarter of 2018, and the Company expects to recognize 48.1% of such revenue over the next 12 months and the remainder thereafter. Payment terms to customers typically range from net 30 to net 90 days and vary by the type and location of customer and the products or services offered. The period between the transfer of control of the promised good or service to a customer and when payment is due is not significant. Contract Costs In connection with the adoption of Topic 606 on January 1, 2018, the Company also adopted the guidance in ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, with respect to capitalization and amortization of incremental costs of obtaining a contract. The new cost guidance requires the capitalization of all incremental costs incurred to obtain a contract with a customer that it would not have incurred if the contract had not been obtained, provided it expects to recover the costs. As a result of this new guidance, the Company capitalizes certain sales commissions related primarily to extended warranty and Calix Cloud products for which the expected amortization period is greater than one year. The Company expects that sales commissions as a result of obtaining customer contracts are recoverable, and therefore the Company defers and capitalizes them as contract costs. Capitalized commissions are amortized as sales and marketing expenses over the period that the related revenue is recognized, which typically range from three to ten years for extended warranty and cloud offerings. The Company classifies the unamortized portion of deferred commissions as current or noncurrent based on the timing of when the Company expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and other assets, respectively, in the Company’s Condensed Consolidated Balance Sheets. As of September 29, 2018 , the unamortized balance of deferred commissions was $0.8 million . For the three and nine ended September 29, 2018 , the amount of amortization was less than $0.1 million , and there was no impairment loss in relation to the costs capitalized. Practical Expedients The Company expenses sales commissions as sales and marketing expenses when incurred if the expected amortization period is one year or less. This applies generally to all transactions other than extended warranty contracts and Calix Cloud products. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Cumulative Effect of Adoption The cumulative effect of changes made to the Condensed Consolidated January 1, 2018 Balance Sheet was as follows (in thousands): Balance at December 31, 2017 Adjustments Balance at January 1, 2018 Accounts receivable, net $ 80,392 $ 491 $ 80,883 Prepaid expenses and other current assets 10,759 (245 ) 10,514 Other assets 759 698 1,457 Total assets 295,070 944 296,014 Deferred revenue 13,076 (829 ) 12,247 Total liabilities 150,107 (829 ) 149,278 Accumulated deficit (667,357 ) 1,773 (665,584 ) Total liabilities and stockholders’ equity 295,070 944 296,014 The impact of adopting the new revenue standard on the Company’s consolidated financial statements as of and for the three and nine months ended September 29, 2018 were as follows (in thousands): Condensed Consolidated Balance Sheet As of September 29, 2018 (Unaudited) As Reported Adjustments Balances Without Adoption of Topic 606 Accounts receivable, net $ 67,671 $ (3,066 ) $ 64,605 Prepaid expenses and other current assets 10,640 3,451 14,091 Other assets 1,987 (599 ) 1,388 Total assets 301,025 (214 ) 300,811 Accrued liabilities 57,052 (595 ) 56,457 Deferred revenue 34,921 3,677 38,598 Total liabilities 156,951 3,082 160,033 Accumulated deficit (679,304 ) (3,296 ) (682,600 ) Total liabilities and stockholders’ equity 301,025 (214 ) 300,811 Condensed Consolidated Statement of Comprehensive Income (Loss) Three Months Ended September 29, 2018 (Unaudited) As Reported Adjustments Balances Without Adoption of Topic 606 Revenue: Systems $ 104,992 $ (401 ) $ 104,591 Services 9,707 (481 ) 9,226 Total revenue 114,699 (882 ) 113,817 Cost of revenue: Systems 54,354 (292 ) 54,062 Services 7,512 (605 ) 6,907 Total cost of revenue 61,866 (897 ) 60,969 Gross profit 52,833 15 52,848 Sales and marketing 20,722 (14 ) 20,708 Net income 809 29 838 Nine Months Ended September 29, 2018 (Unaudited) As Reported Adjustments Balances Without Adoption of Topic 606 Revenue: Systems $ 300,846 $ (3,596 ) $ 297,250 Services 24,958 (1,233 ) 23,725 Total revenue 325,804 (4,829 ) 320,975 Cost of revenue: Systems 160,350 (2,190 ) 158,160 Services 19,696 (1,070 ) 18,626 Total cost of revenue 180,046 (3,260 ) 176,786 Gross profit 145,758 (1,569 ) 144,189 Sales and marketing 61,150 (46 ) 61,104 Net loss (13,720 ) (1,523 ) (15,243 ) Recent Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires recognition of an asset and liability for lease arrangements longer than twelve months. ASU 2016-02 will be effective for the Company beginning in the first quarter of 2019. Early application is permitted, and the standard can be adopted using either a modified retrospective approach whereby the Company would recognize and measure leases at the beginning of the earliest period presented, or using the effective date approach whereby the Company would initially account for the impact of the adoption with a cumulative-effect adjustment to the January 1, 2019 financial statements. The effective date approach will eliminate the need to restate amounts presented prior to January 1, 2019. The Company is not planning to early adopt, and accordingly, it will adopt the new standard effective January 1, 2019 using the effective date approach. The Company is currently assessing the potential impact of adopting this new guidance on its consolidated financial statements. Income taxes On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118") which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (the “Tax Act”). SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes, for the year ended December 31, 2017. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. The Company has not completed its accounting for tax reform with respect to the year ended December 31, 2017 relating to the calculation of the transition tax. The Company is still within the measurement period as of the third quarter of 2018 and is reviewing the earnings and profits of its material foreign subsidiaries to determine if a true up of the transition tax entry recorded at December 31, 2017 will be needed. Cloud Computing Costs In August 2018, the FASB issued ASU No. 2018-15, Intangibles (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new standard also requires customers to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. This new standard becomes effective for the Company in the first quarter of 2020, with early adoption permitted. This new standard can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently assessing the potential impact of adopting this new guidance on its consolidated financial statements. |
Revenue Recognition | Revenue Recognition Revenue is recognized when a performance obligation is satisfied, which occurs when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s hardware products contain both software and non-software components that function together to deliver the products’ essential functionality and therefore constitutes a single performance obligation as the promise to transfer the individual software and non-software components is not separately identifiable and, therefore, not distinct. The Company’s contracts may include multiple performance obligations. For such arrangements, the Company allocates the contract’s transaction price to each performance obligation using the relative stand-alone selling price of each distinct good or service in the contract. The Company generally determines stand-alone selling prices based on the prices charged to customers or its best estimate of stand-alone selling price. The Company’s estimate of stand-alone selling price is established considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, characteristics of targeted customers and pricing practices. The determination of estimated stand-alone selling price is made through consultation with and formal approval by management, taking into consideration the go-to-market strategy. For certain revenue arrangements involving delivery of both systems and professional services, each is considered a distinct performance obligation. Systems revenue is recognized at a point in time when management has determined that control over systems has transferred to the customer, which is generally when legal title has transferred to the customer. For the same revenue arrangements, management believes that control of the associated professional services is transferred to the customer over time. As such, professional services revenue is recognized over the period in which the services are provided using a cost input measure. Prior to adoption of Topic 606, the Company recognized revenue (and corresponding cost of revenue) for systems and associated professional services under the same revenue arrangement as services were delivered and milestones were accepted by the customer and as the systems were installed or delivered to the customer. Accordingly, the Company now recognizes revenue when control of the systems and services has been transferred to the customer, which may be earlier than system installation or customer acceptance, in accordance with the agreed-upon specifications in the contract. The Company derives revenue from contracts with customers primarily from the following and categorizes its revenue as follows: • Systems include revenue from the sale of access and premises systems, software platform licenses and cloud-based software subscriptions. • Services include revenue from professional services, customer support, software- and cloud-based maintenance, extended warranty subscriptions, training and managed services. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following is a summary of revenue disaggregated by geographic region based upon the location of the customers (in thousands): Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 (1) September 29, 2018 September 30, 2017 (1) United States $ 99,224 $ 117,686 $ 281,304 $ 332,333 Caribbean 1,794 2,042 4,468 6,755 Canada 3,321 2,289 7,861 7,796 Europe 2,137 1,598 7,108 4,366 Other 8,223 5,212 25,063 21,218 Total $ 114,699 $ 128,827 $ 325,804 $ 372,468 (1) Fiscal 2017 revenue amounts are accounted for under Topic 605. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of changes made to the Condensed Consolidated January 1, 2018 Balance Sheet was as follows (in thousands): Balance at December 31, 2017 Adjustments Balance at January 1, 2018 Accounts receivable, net $ 80,392 $ 491 $ 80,883 Prepaid expenses and other current assets 10,759 (245 ) 10,514 Other assets 759 698 1,457 Total assets 295,070 944 296,014 Deferred revenue 13,076 (829 ) 12,247 Total liabilities 150,107 (829 ) 149,278 Accumulated deficit (667,357 ) 1,773 (665,584 ) Total liabilities and stockholders’ equity 295,070 944 296,014 The impact of adopting the new revenue standard on the Company’s consolidated financial statements as of and for the three and nine months ended September 29, 2018 were as follows (in thousands): Condensed Consolidated Balance Sheet As of September 29, 2018 (Unaudited) As Reported Adjustments Balances Without Adoption of Topic 606 Accounts receivable, net $ 67,671 $ (3,066 ) $ 64,605 Prepaid expenses and other current assets 10,640 3,451 14,091 Other assets 1,987 (599 ) 1,388 Total assets 301,025 (214 ) 300,811 Accrued liabilities 57,052 (595 ) 56,457 Deferred revenue 34,921 3,677 38,598 Total liabilities 156,951 3,082 160,033 Accumulated deficit (679,304 ) (3,296 ) (682,600 ) Total liabilities and stockholders’ equity 301,025 (214 ) 300,811 Condensed Consolidated Statement of Comprehensive Income (Loss) Three Months Ended September 29, 2018 (Unaudited) As Reported Adjustments Balances Without Adoption of Topic 606 Revenue: Systems $ 104,992 $ (401 ) $ 104,591 Services 9,707 (481 ) 9,226 Total revenue 114,699 (882 ) 113,817 Cost of revenue: Systems 54,354 (292 ) 54,062 Services 7,512 (605 ) 6,907 Total cost of revenue 61,866 (897 ) 60,969 Gross profit 52,833 15 52,848 Sales and marketing 20,722 (14 ) 20,708 Net income 809 29 838 Nine Months Ended September 29, 2018 (Unaudited) As Reported Adjustments Balances Without Adoption of Topic 606 Revenue: Systems $ 300,846 $ (3,596 ) $ 297,250 Services 24,958 (1,233 ) 23,725 Total revenue 325,804 (4,829 ) 320,975 Cost of revenue: Systems 160,350 (2,190 ) 158,160 Services 19,696 (1,070 ) 18,626 Total cost of revenue 180,046 (3,260 ) 176,786 Gross profit 145,758 (1,569 ) 144,189 Sales and marketing 61,150 (46 ) 61,104 Net loss (13,720 ) (1,523 ) (15,243 ) |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Summary of cash and cash equivalents | Cash and cash equivalents consisted of the following (in thousands): September 29, December 31, Cash and cash equivalents: Cash $ 49,213 $ 35,999 Money market funds 3,820 3,776 $ 53,033 $ 39,775 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of accounts receivable, net | Accounts receivable, net consisted of the following (in thousands): September 29, December 31, Accounts receivable $ 68,284 $ 81,793 Allowance for doubtful accounts (613 ) (579 ) Product return reserve (1) — (822 ) $ 67,671 $ 80,392 (1) With adoption of Topic 606 on January 1, 2018, the product return reserve is considered a contract liability and has been reclassified to accrued liabilities. |
Summary of inventory | Inventory consisted of the following (in thousands): September 29, December 31, Raw materials $ 1,554 $ 1,211 Finished goods 28,713 30,318 $ 30,267 $ 31,529 |
Summary of property and equipment, net | Property and equipment, net consisted of the following (in thousands): September 29, December 31, Test equipment $ 44,040 $ 39,952 Computer equipment and software 39,833 32,175 Furniture and fixtures 2,869 2,714 Leasehold improvements 5,176 6,029 Total 91,918 80,870 Accumulated depreciation and amortization (70,666 ) (65,189 ) $ 21,252 $ 15,681 |
Summary of accrued liabilities | Accrued liabilities consisted of the following (in thousands): September 29, December 31, Accrued compensation and related benefits $ 22,623 $ 15,563 Accrued warranty and retrofit 8,660 8,708 Accrued professional and consulting fees 7,347 9,604 Accrued excess and obsolete inventory at contract manufacturers 3,307 2,430 Accrued customer rebates/prepayments 1,977 1,432 Accrued freight 1,276 593 Accrued non-income related taxes 1,157 1,778 Accrued business events 878 1,272 Accrued insurance 665 827 Accrued restructuring charges 595 1,417 Product return reserve (1) 591 — Accrued other 7,976 5,655 $ 57,052 $ 49,279 (1) With adoption of Topic 606 on January 1, 2018, the product return reserve is considered a contract liability and has been reclassified to accrued liabilities from accounts receivable. |
Product warranty activities | Changes in the Company’s warranty and retrofit reserves in the periods as indicated were as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Balance at beginning of period $ 8,188 $ 9,265 $ 8,708 $ 12,214 Provision for warranty and retrofit charged to cost of revenue 1,282 2,057 4,311 5,661 Utilization of reserve (810 ) (2,868 ) (4,359 ) (9,421 ) Balance at end of period $ 8,660 $ 8,454 $ 8,660 $ 8,454 |
Summary of restructuring activities | The following table summarizes the activities pursuant to the above restructuring plans (in thousands): Severance and Related Benefits Facilities Total Balance at December 31, 2017 $ 975 $ 442 $ 1,417 Restructuring charges 5,203 773 5,976 Cash payments (6,032 ) (766 ) (6,798 ) Balance at September 30, 2018 $ 146 $ 449 $ 595 |
Summary of deferred revenue | Deferred revenue consisted of the following (in thousands): September 29, December 31, Current: Products and services $ 12,602 $ 9,125 Extended warranty 4,211 3,951 16,813 13,076 Long-term: Products and services 476 18 Extended warranty 17,632 20,627 18,108 20,645 $ 34,921 $ 33,721 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | Future minimum payments under the non-cancelable operating leases consisted of the following as of September 29, 2018 (in thousands): Period Minimum Future Lease Payments Remainder of 2018 $ 699 2019 3,828 2020 3,817 2021 3,468 2022 3,300 Thereafter 9,465 $ 24,577 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
Accumulated other comprehensive income details | The table below summarizes the changes in accumulated other comprehensive loss by component for the periods indicated (in thousands): Three Months Ended September 29, 2018 September 30, 2017 Foreign Currency Translation Adjustments Unrealized Gains and Losses on Available-for-Sale Marketable Securities Foreign Currency Translation Adjustments Total Balance at beginning of period $ (397 ) $ (7 ) $ (457 ) $ (464 ) Other comprehensive income (loss) (343 ) 4 116 120 Balance at end of period $ (740 ) $ (3 ) $ (341 ) $ (344 ) Nine Months Ended September 29, 2018 September 30, 2017 Foreign Currency Translation Adjustments Unrealized Gains and Losses on Available-for-Sale Marketable Securities Foreign Currency Translation Adjustments Total Balance at beginning of period $ (169 ) $ (6 ) $ (650 ) $ (656 ) Other comprehensive income (loss) (571 ) 3 309 312 Balance at end of period $ (740 ) $ (3 ) $ (341 ) $ (344 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
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 Nine Months Ended September 29, September 30, September 29, September 30, Provision for income taxes $ 85 $ 225 $ 353 $ 1,075 Effective tax rate 9.5 % (1.3 )% (2.6 )% (1.6 )% |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of net income (loss) per share | The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Numerator: Net income (loss) $ 809 $ (17,853 ) $ (13,720 ) $ (70,166 ) Denominator: Weighted-average common shares outstanding used to compute basic net income (loss) per share 53,082 50,336 52,330 49,960 Effect of dilutive common stock equivalents 746 — — — Weighted-average common shares outstanding used to compute diluted net income (loss) per share 53,828 50,336 52,330 49,960 Net income (loss) per common share: Basic net income (loss) per common share $ 0.02 $ (0.35 ) $ (0.26 ) $ (1.40 ) Diluted net income (loss) per common share $ 0.02 $ (0.35 ) $ (0.26 ) $ (1.40 ) Potentially dilutive shares, weighted average 2,513 5,741 6,032 5,704 |
Company and Basis of Presenta_2
Company and Basis of Presentation (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ (679,304) | $ (665,584) | $ (667,357) |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Customer Concentration Risk - Revenue | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Largest One Customer | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 21.00% | 19.00% | ||
Largest Two Customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 41.00% | 43.00% |
Significant Accounting Polici_5
Significant Accounting Policies - Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||
Accumulated deficit | $ (679,304,000) | $ (679,304,000) | $ (665,584,000) | $ (667,357,000) | ||
Total revenues | 114,699,000 | $ 128,827,000 | 325,804,000 | $ 372,468,000 | ||
Revenue recognized | 5,300,000 | 10,500,000 | ||||
Unamortized balance of deferred commissions | 800,000 | 800,000 | ||||
Capitalized contract cost, amortization | 100,000 | |||||
Capitalized contract cost, impairment | 0 | |||||
United States | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 99,224,000 | 117,686,000 | 281,304,000 | 332,333,000 | ||
Caribbean | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 1,794,000 | 2,042,000 | 4,468,000 | 6,755,000 | ||
Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 3,321,000 | 2,289,000 | 7,861,000 | 7,796,000 | ||
Europe | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 2,137,000 | 1,598,000 | 7,108,000 | 4,366,000 | ||
Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 8,223,000 | $ 5,212,000 | 25,063,000 | $ 21,218,000 | ||
Accounting Standards Update 2014-09 | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Accumulated deficit | $ 1,800,000 | |||||
Revenues | $ 900,000 | $ 4,800,000 | ||||
Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Capitalized contract cost, amortization period | 3 years | 3 years | ||||
Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Capitalized contract cost, amortization period | 10 years | 10 years |
Significant Accounting Polici_6
Significant Accounting Policies - Performance Obligations (Details) $ in Thousands | Sep. 29, 2018USD ($) |
Accounting Policies [Abstract] | |
Performance obligations expected to be satisfied | $ 34,921 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 48.10% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Significant Accounting Polici_7
Significant Accounting Policies - Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Accounts receivable, net | $ 67,671 | $ 67,671 | $ 80,883 | $ 80,392 | |||
Prepaid expenses and other current assets | 10,640 | 10,640 | 10,514 | 10,759 | |||
Other assets | 1,987 | 1,987 | 1,457 | 759 | |||
Total assets | 301,025 | 301,025 | 296,014 | 295,070 | |||
Accrued liabilities | 57,052 | 57,052 | 49,279 | ||||
Deferred revenue | 16,813 | 16,813 | 12,247 | 13,076 | |||
Deferred revenue | 34,921 | 34,921 | |||||
Total liabilities | 156,951 | 156,951 | 149,278 | 150,107 | |||
Accumulated deficit | (679,304) | (679,304) | (665,584) | (667,357) | |||
Total liabilities and stockholders’ equity | 301,025 | 301,025 | 296,014 | 295,070 | |||
Revenue | 114,699 | $ 128,827 | 325,804 | $ 372,468 | |||
Cost of revenue | 61,866 | 84,194 | 180,046 | 250,135 | |||
Gross profit | 52,833 | 44,633 | 145,758 | 122,333 | |||
Sales and marketing | [1] | 20,722 | 18,448 | 61,150 | 59,306 | ||
Net loss | 809 | (17,853) | (13,720) | (70,166) | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Accounts receivable, net | 64,605 | 64,605 | 80,392 | ||||
Prepaid expenses and other current assets | 14,091 | 14,091 | 10,759 | ||||
Other assets | 1,388 | 1,388 | 759 | ||||
Total assets | 300,811 | 300,811 | 295,070 | ||||
Accrued liabilities | 56,457 | 56,457 | |||||
Deferred revenue | 13,076 | ||||||
Deferred revenue | 38,598 | 38,598 | |||||
Total liabilities | 160,033 | 160,033 | 150,107 | ||||
Accumulated deficit | (682,600) | (682,600) | (667,357) | ||||
Total liabilities and stockholders’ equity | 300,811 | 300,811 | $ 295,070 | ||||
Revenue | 113,817 | 320,975 | |||||
Cost of revenue | 60,969 | 176,786 | |||||
Gross profit | 52,848 | 144,189 | |||||
Sales and marketing | [1] | 20,708 | 61,104 | ||||
Net loss | 838 | (15,243) | |||||
Accounting Standards Update 2014-09 | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Accumulated deficit | 1,800 | ||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Accounts receivable, net | (3,066) | (3,066) | 491 | ||||
Prepaid expenses and other current assets | 3,451 | 3,451 | (245) | ||||
Other assets | (599) | (599) | 698 | ||||
Total assets | (214) | (214) | 944 | ||||
Accrued liabilities | (595) | (595) | |||||
Deferred revenue | (829) | ||||||
Deferred revenue | 3,677 | 3,677 | |||||
Total liabilities | 3,082 | 3,082 | (829) | ||||
Accumulated deficit | (3,296) | (3,296) | 1,773 | ||||
Total liabilities and stockholders’ equity | (214) | (214) | $ 944 | ||||
Revenue | (882) | (4,829) | |||||
Cost of revenue | (897) | (3,260) | |||||
Gross profit | 15 | (1,569) | |||||
Sales and marketing | [1] | (14) | (46) | ||||
Net loss | 29 | (1,523) | |||||
Systems | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Revenue | 104,992 | 106,442 | 300,846 | 305,395 | |||
Cost of revenue | [1] | 54,354 | 55,494 | 160,350 | 171,166 | ||
Systems | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Revenue | 104,591 | 297,250 | |||||
Cost of revenue | [1] | 54,062 | 158,160 | ||||
Systems | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Revenue | (401) | (3,596) | |||||
Cost of revenue | [1] | (292) | (2,190) | ||||
Services | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Revenue | 9,707 | 22,385 | 24,958 | 67,073 | |||
Cost of revenue | [1] | 7,512 | $ 28,700 | $ 19,696 | 78,969 | ||
Services | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Revenue | 9,226 | 23,725 | |||||
Cost of revenue | [1] | 6,907 | 18,626 | ||||
Services | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Revenue | (481) | (1,233) | |||||
Cost of revenue | [1] | $ (605) | $ (1,070) | ||||
[1] | Includes stock-based compensation as follows: Three and Six Months Ended September 29, 2018 and September 30, 2017; Cost of revenue: Products - $123, $137, $376, $349 ; Services - $89, $69, $257, $200; Research and development - $800, $1,215, $2,597, $3,663; Sales and marketing - $830, $816, $2,465, $2,581; General administrative - $657, $759, $2,105, $2,521; |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 53,033 | $ 39,775 | $ 64,184 | $ 50,359 |
Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 49,213 | 35,999 | ||
Money market funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 3,820 | $ 3,776 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Dec. 31, 2017 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 3.8 | $ 3.8 |
Balance Sheet Details - Account
Balance Sheet Details - Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Summary of accounts receivable, net | |||
Accounts receivable | $ 68,284 | $ 81,793 | |
Allowance for doubtful accounts | (613) | (579) | |
Product return reserve (1) | 0 | (822) | |
Accounts receivable, net | $ 67,671 | $ 80,883 | $ 80,392 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventory (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 |
Summary of inventory, net | ||
Raw materials | $ 1,554 | $ 1,211 |
Finished goods | 28,713 | 30,318 |
Total inventory | $ 30,267 | $ 31,529 |
Balance Sheet Details - Propert
Balance Sheet Details - Property and Equipment, net (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 |
Summary of property and equipment, net | ||
Property and equipment, gross | $ 91,918 | $ 80,870 |
Accumulated depreciation and amortization | (70,666) | (65,189) |
Property and equipment, net | 21,252 | 15,681 |
Test equipment | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 44,040 | 39,952 |
Computer equipment and software | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 39,833 | 32,175 |
Furniture and fixtures | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 2,869 | 2,714 |
Leasehold improvements | ||
Summary of property and equipment, net | ||
Property and equipment, gross | $ 5,176 | $ 6,029 |
Balance Sheet Details - Accrued
Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 |
Summary of accrued liabilities | ||
Accrued compensation and related benefits | $ 22,623 | $ 15,563 |
Accrued warranty and retrofit | 8,660 | 8,708 |
Accrued professional and consulting fees | 7,347 | 9,604 |
Accrued excess and obsolete inventory at contract manufacturers | 3,307 | 2,430 |
Accrued customer rebates/prepayments | 1,977 | 1,432 |
Accrued freight | 1,276 | 593 |
Accrued non-income related taxes | 1,157 | 1,778 |
Accrued business events | 878 | 1,272 |
Accrued insurance | 665 | 827 |
Accrued restructuring charges | 595 | 1,417 |
Product return reserve | 591 | 0 |
Accrued other | 7,976 | 5,655 |
Total accrued liabilities | $ 57,052 | $ 49,279 |
Balance Sheet Details - Warrant
Balance Sheet Details - Warranty Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Other Commitments [Line Items] | ||||
Warranty period | 3 years | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 8,188 | $ 9,265 | $ 8,708 | $ 12,214 |
Provision for warranty and retrofit charged to cost of revenue | 1,282 | 2,057 | 4,311 | 5,661 |
Utilization of reserve | (810) | (2,868) | (4,359) | (9,421) |
Balance at end of period | $ 8,660 | $ 8,454 | $ 8,660 | $ 8,454 |
Minimum | ||||
Other Commitments [Line Items] | ||||
Warranty period | 1 year | |||
Maximum | ||||
Other Commitments [Line Items] | ||||
Warranty period | 5 years |
Balance Sheet Details - Restruc
Balance Sheet Details - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||||||
Restructuring charges (benefit) | $ (157) | $ 612 | $ 5,976 | $ 2,268 | ||
March 2017 Restructuring | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at December 31, 2017 | $ 1,417 | 1,417 | ||||
Restructuring charges (benefit) | 6,000 | 5,976 | $ 4,200 | |||
Cash payments | (6,798) | |||||
Balance at September 30, 2018 | 595 | 595 | 1,417 | |||
March 2017 Restructuring | Severance and Related Benefits | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at December 31, 2017 | 975 | 975 | ||||
Restructuring charges (benefit) | 5,203 | |||||
Cash payments | (6,032) | |||||
Balance at September 30, 2018 | 146 | 146 | 975 | |||
March 2017 Restructuring | Facilities | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at December 31, 2017 | $ 442 | 442 | ||||
Restructuring charges (benefit) | 773 | |||||
Cash payments | (766) | |||||
Balance at September 30, 2018 | $ 449 | $ 449 | $ 442 |
Balance Sheet Details - Deferre
Balance Sheet Details - Deferred Revenue (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | $ 16,813 | $ 13,076 |
Deferred revenue, noncurrent | 18,108 | 20,645 |
Deferred revenue | 34,921 | 33,721 |
Products and services | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | 12,602 | 9,125 |
Deferred revenue, noncurrent | 476 | 18 |
Extended warranty | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | 4,211 | 3,951 |
Deferred revenue, noncurrent | $ 17,632 | $ 20,627 |
Credit Agreements (Details)
Credit Agreements (Details) - USD ($) | 3 Months Ended | |||
Jun. 30, 2018 | Sep. 29, 2018 | Dec. 31, 2017 | Aug. 07, 2017 | |
Debt Instrument [Line Items] | ||||
Line of credit | $ 30,000,000 | $ 30,000,000 | ||
Silicon Valley Bank | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 30,000,000 | |||
Research And Development Equipment | ||||
Debt Instrument [Line Items] | ||||
Purchase obligation | $ 2,400,000 | |||
Purchase obligation, term | 36 months |
Commitments and Contingencies -
Commitments and Contingencies - Textual (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Aug. 31, 2018USD ($)ft² | Jun. 30, 2018 | Mar. 31, 2018USD ($)ft² | Dec. 31, 2017USD ($) | |
Commitments and Contingencies [Line Items] | ||||||||
Future minimum payments due | $ 24,577 | $ 24,577 | ||||||
Rent expense | 800 | $ 900 | 2,400 | $ 2,800 | ||||
Outstanding purchase commitments | 59,100 | 59,100 | ||||||
Accrued customer rebates/prepayments | 3,307 | 3,307 | $ 2,430 | |||||
San Jose, California | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Area of office | ft² | 65 | |||||||
Future minimum payments due | $ 16,100 | |||||||
West Jordan, Utah | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Term of contract | 84 months | |||||||
Future minimum payments due | 3,000 | 3,000 | ||||||
Petaluma, CA | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Area of office | ft² | 22 | |||||||
Term of contract | 64 months | |||||||
Future minimum payments due | $ 2,800 | |||||||
Engineering Services | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Other commitment | $ 17,500 | $ 17,500 |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Leases (Details) $ in Thousands | Sep. 29, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2018 | $ 699 |
2,019 | 3,828 |
2,020 | 3,817 |
2,021 | 3,468 |
2,022 | 3,300 |
Thereafter | 9,465 |
Future minimum payments due | $ 24,577 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Millions | May 16, 2018shares | May 17, 2017periodshares | Aug. 31, 2017shares | Sep. 29, 2018USD ($)Plan$ / sharesshares | Sep. 29, 2018USD ($)Plan$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of equity incentive plans | Plan | 2 | 2 | |||
Stock options granted (in shares) | 165,000 | 230,000 | |||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 7 | $ 6.77 | |||
Stock options exercised (in shares) | 4,993 | 13,488 | |||
Weighted-average exercise price per share, stock options (in dollars per share) | $ / shares | $ 5.47 | $ 5.81 | |||
Unrecognized stock-based compensation expense, stock options | $ | $ 3.3 | $ 3.3 | |||
Weighted-average amortization period | 2 years 8 months 12 days | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted (in shares) | 174,146 | ||||
Weighted-average amortization period | 1 year 4 months 24 days | ||||
Weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 6.66 | ||||
Awards vested (in shares) | 88,904 | 750,286 | |||
Unrecognized stock-based compensation expense | $ | $ 4.4 | $ 4.4 | |||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average amortization period | 1 month 24 days | ||||
Unrecognized stock-based compensation expense | $ | $ 0.2 | $ 0.2 | |||
ESPP, maximum employee payroll deduction percentage | 15.00% | 15.00% | |||
ESPP, maximum number of shares per employee (in shares) | 2,000 | ||||
ESPP, discounted purchase price percentage | 85.00% | ||||
Offering period | 6 months | ||||
Shares available for issuance under the ESPP (in shares) | 1,970,464 | 1,970,464 | |||
ESPP, shares purchased | 485,227 | 485,227 | |||
Performance Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average amortization period | 4 months 24 days | ||||
Awards vested (in shares) | 87,500 | ||||
Unrecognized stock-based compensation expense | $ | $ 0.1 | $ 0.1 | |||
2017 Nonqualified Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation expense, stock options | $ | $ 1.9 | $ 1.9 | |||
Weighted-average amortization period | 1 year | ||||
Shares available for issuance under the ESPP (in shares) | 2,900,000 | 2,900,000 | |||
ESPP, shares purchased | 165,311 | 169,253 | |||
Maximum contribution percent (up to 25%) | 25.00% | ||||
Number of offering periods | period | 2 | ||||
Offering period | 6 months | ||||
Number of additional shares authorized (in shares) | 2,500,000 | ||||
Number of shares authorized | 3,500,000 | ||||
Number of shares authorized per purchase period | 500,000 | ||||
Shares issued in period (in shares) | 169,253 | 169,253 | |||
Executive Officer | Performance Based Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted (in shares) | 1,200,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Balance at beginning of period | $ 144,963 | |||
Other comprehensive income (loss) | $ 120 | $ 312 | ||
Balance at end of period | $ 144,074 | 144,074 | ||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Balance at beginning of period | (7) | (6) | ||
Other comprehensive income (loss) | 4 | 3 | ||
Balance at end of period | (3) | (3) | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Balance at beginning of period | (397) | (457) | (169) | (650) |
Other comprehensive income (loss) | (343) | 116 | (571) | 309 |
Balance at end of period | $ (740) | (341) | $ (740) | (341) |
Total | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Balance at beginning of period | (464) | (656) | ||
Balance at end of period | $ (344) | $ (344) |
Product Line Divestiture (Detai
Product Line Divestiture (Details) - Clearfield, Inc. - Outdoor Cabinet Product Line - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Feb. 28, 2018 | Sep. 29, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal group, consideration | $ 10.4 | |
Inventory transferred | $ 2.1 | |
Period of new orders solicitation | 15 months | |
Disposal group, deferred revenue | $ 1.6 | |
Gain on disposal | $ 6.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 85 | $ 225 | $ 353 | $ 1,075 |
Effective tax rate | 9.50% | (1.30%) | (2.60%) | (1.60%) |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) | $ 809 | $ (17,853) | $ (13,720) | $ (70,166) |
Denominator: | ||||
Weighted-average common shares outstanding used to compute basic net income (loss) per share (in shares) | 53,082 | 50,336 | 52,330 | 49,960 |
Effect of dilutive common stock equivalents (in shares | 746 | 0 | 0 | 0 |
Weighted-average common shares outstanding used to compute diluted net income (loss) per share (in shares | 53,828 | 50,336 | 52,330 | 49,960 |
Basic net income (loss) per common share (in dollars per share) | $ 0.02 | $ (0.35) | $ (0.26) | $ (1.40) |
Diluted net income (loss) per common share (in dollars per share) | $ 0.02 | $ (0.35) | $ (0.26) | $ (1.40) |
Potentially dilutive shares, weighted average (in shares) | 2,513 | 5,741 | 6,032 | 5,704 |