Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Entity Registrant Name | CALIX, INC | ||
Entity Central Index Key | 0001406666 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 56,564,853 | ||
Entity Public Float | $ 303 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 46,829 | $ 49,646 |
Restricted cash | 628 | 628 |
Accounts receivable, net | 46,509 | 67,026 |
Inventory | 40,153 | 50,151 |
Prepaid expenses and other current assets | 9,698 | 7,306 |
Total current assets | 143,817 | 174,757 |
Property and equipment, net | 21,527 | 24,945 |
Right-of-use operating leases | 15,864 | 0 |
Goodwill | 116,175 | 116,175 |
Other assets | 19,440 | 1,203 |
Total assets | 316,823 | 317,080 |
Current liabilities: | ||
Accounts payable | 10,789 | 40,209 |
Accrued liabilities | 57,546 | 57,869 |
Deferred revenue | 17,158 | 15,600 |
Line of credit | 30,000 | 30,000 |
Total current liabilities | 115,493 | 143,678 |
Long-term portion of deferred revenue | 18,340 | 17,496 |
Operating leases | 14,337 | 0 |
Other long-term liabilities | 14,625 | 3,972 |
Total liabilities | 162,795 | 165,146 |
Commitments and contingencies (See Note 6) | ||
Stockholders’ equity: | ||
Preferred stock, $0.025 par value; 5,000 shares authorized; no shares issued and outstanding as of December 31, 2019 and 2018 | 0 | 0 |
Common stock, $0.025 par value; 100,000 shares authorized; 61,778 shares issued and 56,448 shares outstanding as of December 31, 2019, and 59,285 shares issued and 53,955 shares outstanding as of December 31, 2018 | 1,545 | 1,482 |
Additional paid-in capital | 895,899 | 876,073 |
Accumulated other comprehensive loss | (854) | (753) |
Accumulated deficit | (702,576) | (684,882) |
Treasury stock, 5,330 shares as of December 31, 2019 and 2018 | (39,986) | (39,986) |
Total stockholders’ equity | 154,028 | 151,934 |
Total liabilities and stockholders' equity | $ 316,823 | $ 317,080 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 61,777,000 | 59,285,000 |
Common stock, shares outstanding (in shares) | 56,448,000 | 53,955,000 |
Treasury stock (in shares) | 5,330,000 | 5,330,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Revenue | $ 424,330 | $ 441,320 | $ 510,367 |
Cost of revenue: | |||
Cost of revenue | 236,405 | 243,938 | 337,477 |
Gross profit | 187,925 | 197,382 | 172,890 |
Operating expenses: | |||
Research and development | 81,184 | 89,963 | 127,541 |
Sales and marketing | 82,553 | 86,432 | 82,781 |
General and administrative | 37,115 | 40,500 | 39,875 |
Loss on asset retirement | 2,474 | 0 | 0 |
Restructuring charges | 0 | 5,705 | 4,249 |
Gain on sale of product line | 0 | (6,704) | 0 |
Total operating expenses | 203,326 | 215,896 | 254,446 |
Loss from operations | (15,401) | (18,514) | (81,556) |
Interest and other income (expense), net: | |||
Interest expense, net | (958) | (632) | (160) |
Other income (expense), net | (173) | 378 | (73) |
Total interest and other income (expense), net | (1,131) | (254) | (233) |
Loss before provision for income taxes | (16,532) | (18,768) | (81,789) |
Provision for income taxes | 1,162 | 530 | 1,243 |
Net loss | $ (17,694) | $ (19,298) | $ (83,032) |
Net loss per common share: | |||
Basic and diluted (in dollars per share) | $ (0.32) | $ (0.37) | $ (1.66) |
Weighted-average number of shares used to compute net loss per common share: | |||
Basic and diluted (in shares) | 54,993 | 52,609 | 50,155 |
Net loss | $ (17,694) | $ (19,298) | $ (83,032) |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain on available-for-sale marketable securities, net | 0 | 0 | 6 |
Foreign currency translation adjustments, net | (101) | (584) | 481 |
Total other comprehensive income (loss), net of tax | (101) | (584) | 487 |
Comprehensive loss | (17,795) | (19,882) | (82,545) |
Systems | |||
Revenue: | |||
Revenue | 393,231 | 405,923 | 421,890 |
Cost of revenue: | |||
Cost of revenue | 211,309 | 216,529 | 236,137 |
Services | |||
Revenue: | |||
Revenue | 31,099 | 35,397 | 88,477 |
Cost of revenue: | |||
Cost of revenue | $ 25,096 | $ 27,409 | $ 101,340 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Treasury Stock |
Beginning Balance, shares at Dec. 31, 2016 | 49,392 | |||||
Balance at beginning of period at Dec. 31, 2016 | $ 212,964 | $ 1,368 | $ 836,563 | $ (656) | $ (584,325) | $ (39,986) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 12,368 | 12,368 | ||||
Exercise of stock options, shares | 11 | |||||
Exercise of stock options | 62 | $ 0 | 62 | |||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld, shares | 994 | |||||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld | (2,764) | $ 24 | (2,788) | |||
Stock issued under employee stock purchase plans, shares | 1,112 | |||||
Stock issued under employee stock purchase plans | 4,878 | $ 29 | 4,849 | |||
Net loss | (83,032) | (83,032) | ||||
Other comprehensive income (loss) | 487 | 487 | ||||
Ending Balance, shares at Dec. 31, 2017 | 51,509 | |||||
Balance at end of period at Dec. 31, 2017 | 144,963 | $ 1,421 | 851,054 | (169) | (667,357) | (39,986) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 17,473 | 17,473 | ||||
Exercise of stock options, shares | 57 | |||||
Exercise of stock options | 384 | $ 1 | 383 | |||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld, shares | 913 | |||||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld | (74) | $ 22 | (96) | |||
Stock issued under employee stock purchase plans, shares | 1,476 | |||||
Stock issued under employee stock purchase plans | 7,297 | $ 38 | 7,259 | |||
Net loss | (19,298) | (19,298) | ||||
Other comprehensive income (loss) | $ (584) | (584) | ||||
Ending Balance, shares at Dec. 31, 2018 | 53,955 | 53,955 | ||||
Balance at end of period at Dec. 31, 2018 | $ 151,934 | $ 1,482 | 876,073 | (753) | (684,882) | (39,986) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 11,181 | 11,181 | ||||
Exercise of stock options, shares | 74 | 75 | ||||
Exercise of stock options | $ 400 | $ 2 | 440 | |||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld, shares | 611 | |||||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld | (167) | $ 15 | (182) | |||
Stock issued under employee stock purchase plans, shares | 1,807 | |||||
Stock issued under employee stock purchase plans | 8,433 | $ 46 | 8,387 | |||
Net loss | (17,694) | (17,694) | ||||
Other comprehensive income (loss) | $ (101) | (101) | ||||
Ending Balance, shares at Dec. 31, 2019 | 56,448 | 56,448 | ||||
Balance at end of period at Dec. 31, 2019 | $ 154,028 | $ 1,545 | $ 895,899 | $ (854) | $ (702,576) | $ (39,986) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net loss | $ (17,694) | $ (19,298) | $ (83,032) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 11,181 | 17,473 | 12,368 |
Depreciation and amortization | 10,316 | 9,187 | 10,991 |
Loss on asset retirements | 2,636 | 326 | 280 |
Gain on sale of product line | 0 | (6,704) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 20,517 | 13,858 | (29,056) |
Inventory | 9,998 | (20,639) | 13,016 |
Prepaid expenses and other assets | (63) | 3,579 | 35,210 |
Accounts payable | (29,440) | 4,596 | 11,759 |
Accrued liabilities | (1,836) | 2,791 | (20,184) |
Deferred revenue | 2,401 | (1,426) | (14,370) |
Other long-term liabilities | (3,362) | (183) | 246 |
Net cash provided by (used in) operating activities | 4,654 | 3,560 | (62,772) |
Investing activities: | |||
Purchases of property and equipment | (13,353) | (10,426) | (8,026) |
Purchases of marketable securities | 0 | 0 | (8,732) |
Sales of marketable securities | 0 | 0 | 5,051 |
Maturities of marketable securities | 0 | 0 | 31,441 |
Proceeds from sale of product line | 0 | 10,350 | 0 |
Net cash provided by (used in) investing activities | (13,353) | (76) | 19,734 |
Financing activities: | |||
Proceeds from exercise of stock options | 442 | 384 | 62 |
Proceeds from employee stock purchase plans | 8,433 | 7,297 | 4,878 |
Taxes paid for awards vested under equity incentive plan | (167) | (74) | (2,764) |
Payments related to financing arrangements | (2,737) | 0 | 0 |
Proceeds from line of credit | 143,300 | 557,915 | 171,268 |
Repayments of line of credit | (143,300) | (557,915) | (141,268) |
Payments to originate the line of credit | 0 | (115) | (186) |
Net cash provided by financing activities | 5,971 | 7,492 | 31,990 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (89) | (477) | 464 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (2,817) | 10,499 | (10,584) |
Cash, cash equivalents and restricted cash at beginning of year | 50,274 | 39,775 | 50,359 |
Cash, cash equivalents and restricted cash at end of year | 47,457 | 50,274 | 39,775 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 1,123 | 649 | 313 |
Income taxes paid | 403 | 561 | 915 |
Non-cash investing activities: | |||
Changes in accounts payable and accrued liabilities related to purchases of property and equipment | $ (2,435) | $ 8,459 | $ (55) |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Company Calix, Inc. (together with its subsidiaries, “Calix” 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 premises of tomorrow. The Company’s platforms and services help its customers build next generation networks by embracing a DevOps operating model, optimize 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 and Accounting Guidance The accompanying consolidated financial statements have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) and U.S. generally accepted accounting principles (“GAAP”). All significant intercompany balances and transactions have been eliminated in consolidation. Any reference in these notes to applicable accounting guidance (“guidance”) is meant to refer to the authoritative U.S. GAAP as found in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Use of Estimates The preparation of financial statements is in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. For the Company, these estimates include, but are not limited to: allowances for doubtful accounts and sales returns, excess and obsolete inventory, allowances for obligations to its contract manufacturers, valuation of stock-based compensation, useful lives assigned to long-lived assets, standard and extended warranty costs and contingencies. Actual results could differ from those estimates, and such differences could be material to the Company’s financial position and results of operations. Revenue Recognition 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. 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. Specifically, revenue from software platform licenses, which provides the customer with a right to use the software as it exists, is generally recognized upfront when made available to the customer. Revenue from cloud-based software subscriptions, customer support, maintenance, extended warranty subscriptions and managed services is generally recognized ratably over the contract term. Revenue from professional services and training is recognized as the services are completed. 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. 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 the output 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. The Company 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. Cost of Revenue Cost of revenue consists primarily of finished goods inventory purchased from the Company’s contract manufacturers, payroll and related expenses associated with managing the relationships with contract manufacturers, depreciation of manufacturing test equipment, warranty and retrofit costs, excess and obsolete inventory costs, shipping charges and amortization of certain intangible assets. It also includes contractor and other costs of services incurred directly related to the delivery of services to customers. Warranty and Retrofit The Company offers limited warranties for its hardware products for a period of one , three or five years, depending on the product type. The Company recognizes estimated costs related to warranty activities as a component of cost of revenue upon product shipment or upon identification of a specific product failure. 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 as a component of cost of revenue upon identification of such product failures. The Company recognizes estimated warranty and retrofit costs when it is probable that a liability has been incurred and the amount of loss is reasonably estimable. The estimates are based upon historical and projected product failure and claim rates, historical costs incurred in correcting product failures and information available related to any specifically identified product failures. Judgment is required in estimating costs associated with warranty and retrofit activities, and the Company's estimates are limited to information available to the Company at the time of such estimates. In some cases, such as when a specific product failure is first identified or a new product is introduced, the Company may initially have limited information and limited historical failure and claim rates upon which to base its estimates, and such estimates may require revision in future periods. The recorded amount is adjusted from time to time for specifically identified warranty and retrofit exposure. Actual warranty and retrofit expenses are charged against the Company’s estimated warranty and retrofit liability when incurred. Factors that affect the Company’s warranty and retrofit liability include the number of active installed units and historical and anticipated rates of warranty and retrofit claims and cost per claim. Stock-Based Compensation Stock-based compensation expense associated with stock options, performance stock options (“PSOs”), restricted stock units (“RSUs”) and purchase rights under the Amended and Restated Employee Stock Purchase Plan (the “ESPP”) and the Amended and Restated 2017 Nonqualified Employee Stock Purchase Plan (the “NQ ESPP”) is measured at the grant date based on the fair value of the award, and is recognized, net of forfeitures, as expense over the remaining requisite service period (generally the vesting period) on a straight-line basis. The fair value of stock option and employee stock purchase right under the ESPP is estimated at the grant date using the Black-Scholes option valuation model. The fair value of RSUs and employee stock purchase right under the Nonqualified ESPP is based on closing market price of the Company’s common stock on the date of grant. Stock-based compensation expense associated with PSOs with graded vesting features and which contain both a performance and a service condition is measured based on fair value of stock options estimated at the grant date using the Black-Scholes option valuation model, and is recognized, net of forfeitures, as expense over the requisite service period using the graded vesting attribution method. Compensation expense is only recognized if the Company has determined that it is probable that the performance condition will be met. The Company reassesses the probability of vesting at each reporting period and adjusts compensation expense based on its probability assessment. Loss Contingencies From time to time, the Company is involved in legal proceedings arising from the normal course of business activities. The Company evaluates the likelihood of an unfavorable outcome of legal proceedings to which it is a party and accrues a loss contingency when the loss is probable and reasonably estimable. Assessing legal contingencies involves significant judgment and estimates, and the outcome of litigation is inherently uncertain and subject to numerous factors outside the Company’s control. Significant judgment is required when the Company assesses the likelihood of any adverse judgments or outcomes, including the potential range of possible losses, and whether losses are probable and reasonably estimable. Because of uncertainties related to these matters, the Company bases its estimates of whether a loss contingency is probable or reasonably possible, as well as the reasonable range of possible losses associated with each loss contingency, only on the information available at the time. As additional information becomes available, and at least quarterly, the Company reassesses the potential liability on each significant matter and may revise its estimates. These revisions could have a material impact on the Company’s business, operating results or financial condition. The actual outcome of these legal proceedings may materially differ from the Company’s estimates of potential liability, which could have a material adverse effect on the Company’s business, operating results or financial condition. Credit Risk and Inventory Supplier Concentrations Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash equivalents consist of money market funds, which are invested through financial institutions in the United States. Deposits in these financial institutions may, at times, exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company also has approximately $2.4 million of cash held by its foreign subsidiaries in Brazil, China and the United Kingdom. Management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to these cash and cash equivalents. The Company depends primarily on a small number of outside contract manufacturers ("CMs") and original design manufacturers ("ODMs") for the bulk of its finished goods inventory. The Company generally purchases its products through purchase orders with its suppliers. While the Company seeks to maintain a sufficient supply of its products, the Company’s business and results of operations could be adversely affected by a stoppage or delay in receiving such products, the receipt of defective parts, an increase in price of such products or the Company’s inability to obtain lower prices from its CMs, ODMs and other suppliers in response to competitive pressures. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, marketable securities, trade receivables, accounts payable, line of credit and other accrued liabilities approximate their fair value due to their relatively short-term nature. Cash, Cash Equivalents, Restricted Cash and Marketable Securities Cash equivalents and marketable securities are stated at amounts that approximate fair value based on quoted market prices. Restricted cash is cash that is legally restricted as to withdrawal or usage. As of December 31, 2019 , the Company had $0.6 million in restricted cash related to a letter of credit in connection with its San Jose facility lease. The Company has invested its excess cash primarily in money market funds and highly liquid marketable securities such as corporate debt instruments, commercial paper and U.S. government agency securities. The Company considers all investments with maturities of three months or less when purchased to be cash equivalents. Marketable securities represent highly liquid corporate debt instruments, commercial paper and U.S. government agency securities with maturities greater than 90 days at date of purchase. Marketable securities with maturities greater than one year are classified as current because management considers all marketable securities to be available for current operations. The Company’s investments have been classified and accounted for as available-for-sale. Such investments are recorded at fair value and unrealized holding gains and losses are reported as a separate component of comprehensive loss in the stockholders’ equity until realized. Realized gains and losses on sales of marketable securities, if any, are determined on the specific identification method and are reclassified from accumulated other comprehensive loss to results of operations as “Other income (expense), net”. The Company had no investments as of December 31, 2019 and 2018. Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company records a specific allowance based on an analysis of individual past-due balances. Additionally, based on historical write-offs and the Company’s collection experience, the Company records an additional allowance based on a percentage of outstanding receivables. The Company performs credit evaluations of its customers’ financial condition. These evaluations require judgment and are based on a variety of factors including, but not limited to, current economic trends, payment history and a financial review of the customer. Actual collection losses may differ from management’s estimates, and such differences could be material to the Company's financial position and results of operations. Inventory Valuation Inventory, which primarily consists of finished goods purchased from CMs or ODMs, is stated at the lower of cost (determined by the first-in, first-out method) or market value. Inbound shipping costs and U.S. tariffs are included in cost of inventory. In addition, the Company, from time to time, procures component inventory primarily as a result of manufacturing discontinuation of critical components by suppliers. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based on the Company’s estimate of demand for its products, potential obsolescence of technology, product life cycles and whether pricing trends or forecasts indicate that the carrying value of inventory exceeds its estimated selling price. These factors are impacted by market and economic conditions, technology changes and new product introductions and require significant estimates that may include elements that are uncertain. Actual demand may differ from forecasted demand and may have a material effect on gross profit. If inventory is written down, a new cost basis is established that cannot be increased in future periods. Shipments from suppliers before the Company receives them are recorded as in-transit inventory when title and the significant risks and rewards of ownership have passed to the Company. Contract Costs The Company capitalizes sales commissions primarily related to extended warranty and Calix Cloud contracts for which the expected amortization period is greater than one year. 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 Consolidated Balance Sheets. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and are depreciated using the straight-line method over the estimated useful life of each asset. Generally, computer equipment is depreciated over two years; purchased software is depreciated over three to five years; test equipment is depreciated over three years; furniture and fixtures are depreciated over seven years; and leasehold improvements are depreciated over the shorter of the respective lease term or the estimated useful life of the asset. Maintenance and repairs are charged to expense as incurred. Goodwill Goodwill was recorded as a result of the Company’s acquisitions of Occam Networks, Inc. in February 2011 and Optical Solutions, Inc. in February 2006. The Company records goodwill when consideration paid in a business acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized but instead is subject to an annual impairment test or more frequently if events or changes in circumstances indicate that it may be impaired. The Company evaluates goodwill on an annual basis as of the end of the second quarter of each fiscal year. Management has determined that it operates as a single reporting unit and, therefore, evaluates goodwill impairment at the enterprise level. In an annual impairment test, the Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In assessing the qualitative factors, management considers the impact of these key factors: macro-economic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. If the Company determines as a result of the qualitative assessment that it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, then the quantitative test is required. Otherwise, no further testing is required. In a quantitative test, the Company compares its fair value to its carrying value including goodwill. The Company determines its fair value using both an income approach and a market approach. Under the income approach, the Company determines fair value based on estimated future cash flows, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the Company and the rate of return an outside investor would expect to earn. Under the market-based approach, the Company utilizes information regarding the Company as well as publicly available industry information to determine earnings multiples that are used to value the Company. If the carrying value of the Company exceeds its fair value, the Company will determine the amount of impairment loss by comparing the implied fair value of goodwill with the carrying value of goodwill. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. At the end of the second quarter of 2019 , the Company completed its annual goodwill impairment test. Based on its assessment of the above qualitative factors, management concluded that the fair value of the Company was more likely than not greater than its carrying amount as of June 30, 2019 . As such, it was not necessary to perform the two-step quantitative goodwill impairment test at the time. There have been no significant events or changes in circumstances subsequent to the 2019 annual impairment test that would more likely than not indicate that the carrying value of goodwill may have been impaired as of December 31, 2019 . Therefore, there was no impairment to the carrying value of the Company’s goodwill as of December 31, 2019 . There were no impairment losses for goodwill for the years ended December 31, 2018 or 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. Payment terms to customers typically range from net 30 to net 90 days and vary by the size 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. Income Taxes The Company evaluates its tax positions and estimates its current tax exposure along with assessing temporary differences that result from different book to tax treatment of items not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities on the Company’s Consolidated Balance Sheets, which are estimated based upon the difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates that will be in effect when these differences reverse. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in the Company’s Consolidated Statements of Comprehensive Loss become deductible expenses under applicable income tax laws or loss or credit carryforwards are utilized. Accordingly, realization of the Company’s deferred tax assets is dependent on future taxable income against which these deductions, losses and credits can be utilized. The Company must assess the likelihood that the Company’s deferred tax assets will be recovered from future taxable income, and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance. Management judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and any valuation allowance recorded against the Company’s net deferred tax assets. Excluding foreign operations, the Company recorded a full valuation allowance at each balance sheet date presented because, based on the available evidence, the Company believes it is more likely than not that it will not be able to utilize all of its deferred tax assets in the future. The Company intends to maintain the full valuation allowance until sufficient evidence exists to support the reversal of the valuation allowance. Newly Adopted Accounting Standards Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), which requires recognition of an asset and liability for lease arrangements longer than twelve months. The Company adopted the new standard effective January 1, 2019 using the effective date approach which eliminates the need to restate amounts presented prior to that date. The Company also elected the package of practical expedients but not the hindsight practical expedient. The adoption had a material impact on the Company's Consolidated Balance Sheets but did not impact the Company's Consolidated Statements of Comprehensive Loss, Cash Flows or Stockholders' Equity. Upon adoption on January 1, 2019, the Company recognized an operating lease right-of-use asset of $15.8 million and a lease liability of $16.7 million . Recent Accounting Pronouncements Not Yet Adopted There have been no accounting pronouncements or changes in accounting pronouncements that are significant or potentially significant to the Company. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash consisted of the following (in thousands): December 31, 2019 2018 Cash and cash equivalents: Cash $ 46,815 $ 45,806 Money market funds 14 3,840 Total cash and cash equivalents 46,829 49,646 Restricted cash 628 628 $ 47,457 $ 50,274 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 | 12 Months Ended |
Dec. 31, 2019 | |
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. The fair value hierarchy also requires the Company to maximize the use of observable inputs, when available, and to minimize the use of unobservable inputs when determining inputs and determining fair value. As of December 31, 2019 and 2018 , the Company had money market funds of $14,000 and $3.8 million , respectively, 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 | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Accounts receivable, net consisted of the following (in thousands): December 31, 2019 2018 Accounts receivable $ 46,883 $ 67,396 Allowance for doubtful accounts (374 ) (370 ) $ 46,509 $ 67,026 The table below summarizes the changes in allowance for doubtful accounts and product return liability for the periods indicated (in thousands): Balance at Beginning of Year Additions Charged to Costs or Expenses or Revenue Deductions and Write Offs Balance at End of Year Year Ended December 31, 2019 Allowance for doubtful accounts $ 370 $ 168 $ (164 ) $ 374 Product return liability 880 1,620 (1,581 ) 919 Year Ended December 31, 2018 Allowance for doubtful accounts $ 579 $ (5 ) $ (204 ) $ 370 Product return liability 822 771 (713 ) 880 Year Ended December 31, 2017 Allowance for doubtful accounts $ 518 $ 103 $ (42 ) $ 579 Product return liability 938 3,682 (3,798 ) 822 Inventory consisted of the following (in thousands): December 31, 2019 2018 Raw materials $ 656 $ 10,815 Finished goods 39,497 39,336 $ 40,153 $ 50,151 Property and equipment, net consisted of the following (in thousands): December 31, 2019 2018 Test equipment $ 37,001 $ 39,148 Software 20,646 24,355 Computer equipment 10,835 10,342 Furniture and fixtures 2,342 1,976 Leasehold improvements 2,047 3,559 72,871 79,380 Accumulated depreciation and amortization (51,344 ) (54,435 ) $ 21,527 $ 24,945 Depreciation and amortization expenses were $10.3 million , $9.2 million and $11.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Loss on Asset Retirement In July 2018, in connection with establishing a direct relationship with Verizon Communications, Inc. (“Verizon”), the Company licensed software from a former partner to support the Company's deployments at Verizon. During the third quarter of 2019, Verizon informed the Company that it no longer required this software. As a result, the Company wrote off the software in the third quarter of 2019, resulting in a $2.5 million charge in the Company's Consolidated Statements of Comprehensive Income (Loss). Other long-term assets consisted of the following (in thousands): December 31, 2019 2018 Intangible asset $ 12,148 $ — Capitalized cloud implementation costs 6,089 — Other long-term assets 1,203 1,203 $ 19,440 $ 1,203 Intangible Asset Acquisition In March 2018, the Company entered into an agreement with a vendor to develop certain software product and related enhancements pursuant to which the Company may be obligated to make minimum revenue-share payments under the program of up to $15.8 million over the three years following availability for sale. The payments are based on a revenue-share rate applied to revenue from the developed-product and the corresponding hardware sales subject to a minimum and a maximum aggregate amount over the three-year sales period. The Company had its first sale in August 2019, and as a result, the Company capitalized an intangible asset with a value of $13.2 million in the third quarter of 2019 and also recognized a liability of $13.2 million (a non-cash investing activity). The balance of $13.5 million is included in accrued liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2019 . The values of the intangible asset and liability were based on the net present value of the expected payments using a 6.5% discount rate. The intangible asset has a five -year useful life and will be amortized using the ratio of current gross revenue for the products to the total of current and anticipated future gross revenue for the products, or the straight-line method, whichever is greater. Accrued liabilities consisted of the following (in thousands): December 31, 2019 2018 Compensation and related benefits $ 19,010 $ 19,811 Warranty and retrofit 7,294 8,547 Customer advances or rebates 7,252 6,103 Professional and consulting fees 4,996 6,060 Current portion of financing arrangements 4,044 2,359 Operating leases 2,663 — Taxes payable 2,021 1,516 Component inventory held by suppliers 1,925 2,667 Operations 1,053 1,059 Product returns 919 880 Insurance 852 917 Freight 808 1,187 Business events — 1,696 Other 4,709 5,067 $ 57,546 $ 57,869 Changes in the Company’s accrued warranty and retrofit liability were as follows (in thousands): Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 8,547 $ 8,708 $ 12,214 Provision for warranty and retrofit charged to cost of revenue 4,425 5,215 8,720 Utilization of reserve (5,678 ) (5,376 ) (12,226 ) Balance at end of year $ 7,294 $ 8,547 $ 8,708 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 align its business resources based on the production releases of its platform offerings. The Company incurred restructuring charges of approximately $5.7 million for the year ended December 31, 2018, consisting primarily of severance and other termination related benefits. The following table summarizes the activities pursuant to the above restructuring plans (in thousands): Severance and Related Benefits Facilities Total Balance as of December 31, 2017 $ 975 $ 442 $ 1,417 Restructuring charges for the year 5,203 502 5,705 Cash payments (6,178 ) (916 ) (7,094 ) Balance as of December 31, 2018 — 28 28 Cash payments — (28 ) (28 ) Balance as of December 31, 2019 $ — $ — $ — |
Credit Agreements
Credit Agreements | 12 Months Ended |
Dec. 31, 2019 | |
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 with Silicon Valley Bank (the “SVB Loan Agreement”). The SVB Loan Agreement provides for a senior secured revolving credit facility, 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 SVB Loan Agreement requires the Company to maintain a liquidity ratio at minimum levels set forth in more detail in the SVB 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. In February 2019, the Company entered into a third amendment to the SVB Loan Agreement to reduce the required minimum level of the Adjusted Quick Ratio (“AQR”) for the first half of 2019 and the required minimum Adjusted EBITDA for the first fiscal quarter of 2019 to accommodate the increased costs and use of cash that the Company anticipated for the first half of 2019 related to activities to mitigate the impact of the U.S. tariffs. As of September 28, 2019 and December 31, 2019, the Company was in compliance with all these requirements except for the minimum AQR covenant. The Company was not able to maintain the minimum AQR at the level required in the SVB Loan Agreement, which constituted events of default. SVB waived the events of default effective as of September 28, 2019 and December 31, 2019, respectively, and, therefore, these defaults did not change the Company’s ability to borrow under the SVB Loan Agreement. As of December 31, 2019 and 2018, the Company had borrowings outstanding of $30.0 million under the line of credit, which represents the full capacity available under the facility. The Company's interest rate on the line of credit was 6.3% as of December 31, 2019 and 7.0% as of December 31, 2018. In January 2020, the Company replaced the SVB Loan Agreement with a new asset-based credit facility with Bank of America (“BofA”). See Note 15 “Subsequent Event”. Financing Arrangements During 2018, the Company entered into financing arrangements to purchase lab and test equipment for approximately $5.1 million , which are non-cash investing activities. Each agreement is to be paid over 36 months with a weighted average interest rate of 6.2% . As of December 31, 2019 , there was $2.9 million outstanding under these financing arrangements, which is included in accrued liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheet. During 2017, 2018 and 2019, the Company entered into financing arrangements for consulting services of $5.4 million in connection with the Company’s enterprise resource planning (“ERP”) implementation. These were non-cash investing activities of $2.0 million , $1.8 million and $1.6 million for years ended December 31, 2019 , 2018 and 2017 , respectively. The current amounts due under this agreement are to be paid over a weighted average term of 2.4 years with a weighted average interest rate of 6.5% . As of December 31, 2019 , there was $2.1 million outstanding under these arrangements, which is included in accrued liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheet. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company leases office space under non-cancelable operating leases. Certain of the Company’s operating leases contain renewal options and rent acceleration clauses. Future minimum payments under the non-cancelable operating leases consisted of the following as of December 31, 2019 (in thousands): Year Ending December 31, Future Minimum Lease Payments 2020 $ 3,769 2021 3,604 2022 3,461 2023 3,578 2024 3,388 Thereafter 2,881 Total future minimum lease payments 20,681 Less imputed interest (3,681 ) $ 17,000 Operating lease liability consisted of the following (in thousands): December 31, Accrued liabilities - current portion of operating leases $ 2,663 Operating leases 14,337 $ 17,000 Prior to the adoption of Topic 842, future minimum lease payments under the non-cancelable operating leases as of December 31, 2018 , which were undiscounted, were as follows (in thousands): Year Ending December 31, Future Minimum Lease Payments 2019 $ 3,750 2020 3,817 2021 3,468 2022 3,300 2023 3,411 Thereafter 6,053 $ 23,799 The Company leases its headquarters office space in San Jose, California under a lease agreement that expires in December 2025. The future minimum lease payments under the lease are $14.0 million and are included in the table for the year ended December 31, 2019 above. In August 2018, the Company entered into a new office lease agreement in Petaluma, California. The lease commenced in February 2019 for a term of 64 months . The future minimum lease payments of $2.5 million are included in the table for the year ended December 31, 2019 above. The Company recorded a right-of-use operating lease asset and operating lease liability of $2.2 million in the first quarter of 2019. The Company’s previous lease in Petaluma, California expired in March 2019. The above tables also include future minimum lease payments for the Company's office facilities in Nanjing, China; Plymouth, Minnesota; Richardson, Texas; and West Jordan, Utah, which expire at various dates through 2025. The weighted average discount rate for the Company's operating leases as of December 31, 2019 was 7.0% . The weighted average remaining lease term as of December 31, 2019 was 5.1 years . For the years ended December 31, 2019 , 2018 and 2017 , total rent expense of the Company was $4.7 million , $3.4 million and $3.7 million , respectively. Cash paid within operating cash flows for operating leases was $3.7 million for year ended December 31, 2019 . Purchase Commitments The Company’s CMs and ODMs place orders for certain component inventory in advance of the Company’s orders based upon the Company’s forecasts in order to reduce manufacturing lead times and ensure adequate component supply. The Company generally does not take ownership of the components held by CMs and ODMs. The Company places purchase orders with its CMs and ODMs in order to fulfill its monthly finished product inventory requirements. The Company incurs a liability when the CMs and ODMs convert the component inventory to a finished product subject to purchase orders and takes ownership of the finished goods inventory. In the event of termination of services with a manufacturing partner, the Company has purchased, and may be required to purchase in the future, certain of the remaining components inventory held by the CM or ODM as well as any outstanding orders pursuant to the contractual provisions with such CM or ODM. As of December 31, 2019 , the Company had approximately $52.5 million of outstanding purchase commitments for inventory to be delivered by its suppliers, including CMs and ODMs, within one year. The Company has, from time to time and subject to certain conditions, purchased from suppliers component inventory when this inventory has been rendered excess or obsolete due to manufacturing and engineering change orders resulting from design changes or manufacturing discontinuation of parts by its suppliers, or in cases where inventory levels greatly exceed projected demand. The estimated excess and obsolete inventory at suppliers was $1.9 million and $2.7 million as of December 31, 2019 and 2018 , respectively, which is included in accrued liabilities in the accompanying Consolidated Balance Sheets. The Company records the related charges in cost of systems revenue in its Consolidated Statements of Comprehensive Loss. 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. Indemnifications The Company from time to time enters into contracts that require it to indemnify various parties against claims from third parties. These contracts primarily relate to (i) certain real estate leases, under which the Company may be required to indemnify property owners for environmental and other liabilities, and other claims arising from the Company’s use of the applicable premises, (ii) agreements with the Company’s officers, directors and certain employees, under which the Company may be required to indemnify such persons for liabilities arising out of their relationship with the Company, (iii) contracts under which the Company may be required to indemnify customers against third-party claims that a Company product infringes a patent, copyright or other intellectual property right and (iv) agreements under which the Company may be required to indemnify the counterparty for certain claims that may be brought against them arising from the Company’s acts or omissions with respect to the transactions contemplated by such agreements. Because any potential obligation associated with these types of contractual provisions are not quantified or stated, the overall maximum amount of the obligation cannot be reasonably estimated. Historically, the Company has not been required to make payments under these obligations, and no liabilities have been recorded for these obligations in the accompanying Consolidated Balance Sheets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock The Board of Directors has the authority, without action by stockholders with the exception of stockholders who hold board positions, to designate and issue up to 5.0 million shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of common stock. The issuance of the Company’s preferred stock could adversely affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control of the Company or other corporate action. Since the Company’s initial public offering, the Board of Directors has not designated any rights, preference or powers of any preferred stock and no shares of preferred stock have been issued. Common Stock Holders of the Company’s common stock are entitled to receive dividends, if any, as may be declared from time to time by the Board of Directors out of legally available funds. No dividends have been declared or paid as of December 31, 2019 . In the event of the Company’s liquidation, dissolution or winding up, holders of the Company’s common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of the Company’s debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then outstanding shares of preferred stock. Equity Incentive Plans 2019 Equity Incentive Award Plan At the Company’s annual meeting of stockholders in May 2019, the stockholders approved the 2019 Equity Incentive Award Plan (the “2019 Plan”). The 2019 Plan supersedes and replaces the 2010 Equity Incentive Award Plan (the “2010 Plan”) and preceding plans. No further awards will be granted under the 2010 Plan; however, the terms and conditions of the 2010 Plan will continue to govern any outstanding awards granted under the 2010 Plan. Employees and consultants of the Company, its subsidiaries and affiliates, as well as members of the Company's Board of Directors, are eligible to receive awards under the 2019 Plan. The 2019 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, RSUs, other stock or cash-based awards and dividend equivalents to eligible individuals. The number of shares available for issuance under the 2019 Plan includes an initial reserve of 1.7 million shares of common stock, any shares of common stock that are available for issuance under the 2010 Plan as of the effective date of the 2019 Plan and any shares of common stock subject to issued and outstanding awards under the 2010 Plan that expire, are cancelled or otherwise terminate following the effective date of the 2019 Plan. As of December 31, 2019 , there were 2.0 million shares available for issuance under the 2019 Plan. Stock options granted under the 2019 Plan are granted in general at a price not less than 100% of the fair market value of the common stock on the date of grant. Stock options issued under the 2019 Plan generally vest 25% on the first anniversary of the vesting commencement date and on a quarterly basis thereafter for a period of an additional three years . The options have a maximum term of ten years . Each RSU granted under the 2019 Plan represents a right to receive one share of the Company’s common stock (subject to adjustment for certain specified changes in the capital structure of the Company) upon the completion of a specific period of continued service. In October 2017, in connection with the hiring of its Chief Financial Offer, the Company made an “inducement” award of non-qualified stock options to purchase 0.3 million shares of the Company's common stock with an exercise price of $5.05 per share, equal to the grant date fair value based upon the closing price of the Company's common stock. The stock option was granted outside the terms of the Company's 2010 Equity Incentive Award Plan (under the employee inducement award exemption under the New York Stock Exchange Listed Company Manual Rule 303A.08). The stock option will vest and become exercisable over four years from the date of grant, with 25% of the shares vesting on the one -year anniversary of the grant date and the remaining shares vesting quarterly thereafter over the next three years, subject to continued employment with the Company. In December 2017, the Company granted 1.6 million shares of performance-based stock option awards to its executives. These performance-based stock option awards contain a one -year performance period and a subsequent two -year service period. The performance target is based on the Company’s non-GAAP operating income during the performance period and accounted for as a performance condition. After the one-year performance period, if the performance target is met and subject to certification by the Compensation Committee of the Company’s Board of Directors, each performance-based stock option award shall vest with respect to 50% of the earned shares on January 1, 2019 and 6.25% of the earned shares quarterly thereafter, subject to the executive’s continuous service with the Company from the grant date through the respective vesting dates. If the performance target is not met, all such performance-based stock options shall be immediately forfeited and canceled. In November 2018, the Compensation Committee of the Company’s Board of Directors modified the performance target. Subsequently, in February 2019, the Compensation Committee of the Company’s Board of Directors concluded that the revised performance target was met based on the actual non-GAAP net income achieved for 2018. As such, each stock option was earned subject to the executive's continuous service with the Company from the grant date through the remaining vesting dates. In February 2019, PSOs exercisable for up to an aggregate of 2.0 million shares of common stock were granted to Company executives with a grant date fair value of $8.03 per share. These PSOs contain a one -year performance period and a subsequent three -year service period. The actual number of shares earned is contingent upon achievement of both annual and quarterly corporate financial targets for revenue, non-GAAP gross margin and non-GAAP net income per share for 2019 (collectively, the “2019 Performance Targets”) during the one -year performance period. These PSOs would vest, subject to certification by the Compensation Committee of the Company’s Board of Directors, of the achievement of the 2019 Performance Targets, as to 25% of the shares of common stock earned on the date of such certification, and as to the remaining 75% of the shares of common stock earned, in substantially equal quarterly installments over the subsequent 3 years , subject to the executive’s continuous service with the Company through the respective vesting dates. If all of the 2019 Performance targets are met, each executive receives 100% of their target shares. Furthermore, each executive may receive a number of shares above their target shares for achievement of at least 125% above the non-GAAP net income per share target, up to a maximum of 200% of the target shares for achievement above 125% of the net income per share target. In August 2019, the Compensation Committee of the Company’s Board of Directors amended the 2019 Performance Targets to provide for the award of up to 40% of the total number of shares subject to a stock option award in the event the annual corporate financial targets are not met but the quarterly corporate financial targets are met. As a result, the probability of meeting some of the performance conditions related to these PSOs was assessed to be probable, and $0.5 million of stock-based compensation expense was recognized in 2019. Stock Options The following table summarizes the activity of stock options under the Company’s equity incentive plans (in thousands, except per share data): Weighted- Average Weighted- Remaining Average Contractual Aggregate Number of Exercise Price Life Intrinsic Stock Options Shares Per Share (in years) Value (1) Outstanding as of December 31, 2018 4,442 $ 7.40 Granted 2,925 7.97 Exercised (74 ) 5.94 Canceled (416 ) 7.45 Outstanding as of December 31, 2019 6,877 $ 7.66 7.3 $ 5,303 Vested and expected to vest as of December 31, 2019 6,782 $ 7.66 7.3 $ 5,235 Options exercisable as of December 31, 2019 3,199 $ 7.82 5.3 $ 3,448 (1) Amounts represent the difference between the exercise price and the fair market value of common stock at December 31, 2019 of $8.00 per share for all in the money options outstanding. During the years ended December 31, 2019 , 2018 and 2017 , total intrinsic value of stock options exercised was $0.2 million , $0.1 million and $10 thousand , respectively. Total cash received from employees as a result of stock option exercises in 2019 , 2018 and 2017 was $0.4 million , $0.4 million and $0.1 million , respectively. Total fair values of stock options vested during 2019 , 2018 and 2017 were $7.6 million , $2.7 million and $2.1 million , respectively. Restricted Stock Units and Performance Restricted Stock Units (“PRSUs”) The following table summarizes the activities of the Company’s RSUs and PRSUs under the Company’s equity incentive plans (in thousands, except per share data): RSUs PRSUs Weighted- Weighted- Average Average Grant Date Grant Date Number of Fair Value Number of Fair Value Shares Per Share Shares Per Share Outstanding at December 31, 2018 788 $ 7.26 63 $ 7.42 Granted 190 6.62 — — Vested (571 ) 7.39 (63 ) 7.42 Canceled (73 ) 7.10 — — Outstanding at December 31, 2019 334 $ 6.71 — $ — Upon vesting of certain RSUs and PRSUs, the Company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes and remitted the cash to the appropriate taxing authorities. The number of shares withheld was based on the value of the RSUs or PRSUs on their vesting date as determined by the Company’s closing stock price. The withheld shares are reserved for future grant and issuance under the 2019 Plan. Employee Stock Purchase Plans The Company maintains two employee stock purchase plans - the ESPP and the NQ 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. At the Company’s annual meeting of stockholders in May 2019, the stockholders approved an increase in the number of shares of common stock issuable under the ESPP by 2.5 million shares. The total shares authorized for issuance under the ESPP increased from 7.3 million shares to 9.8 million shares. For the year ended December 31, 2019 , shares totaling 0.9 million were purchased and issued. As of December 31, 2019 , there were 3.2 million shares available for future issuance. The NQ 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 NQ ESPP provides six-month offering periods commencing June 21 st and December 21 st of each year. At the Company’s annual meeting of stockholders in May 2018, the stockholders approved an amendment of certain terms and an increase in the number of shares of common stock issuable under the NQ ESPP by 2.5 million shares. The maximum number of shares of common stock currently authorized for issuance under the NQ ESPP as of December 31, 2019 is 3.5 million shares, with a maximum of 0.5 million shares allocated per purchase period. For the year ended December 31, 2019 , 0.5 million shares were purchased and issued, with an additional equal number of shares issued subject to a risk of forfeiture. As of December 31, 2019 , there were 2.0 million shares available for future issuance. Stock-Based Compensation During the years ended December 31, 2019 , 2018 and 2017 , the Company recorded stock-based compensation expense of $11.2 million , $17.5 million and $12.4 million , respectively. The following table summarizes stock-based compensation expense (in thousands): Years Ended December 31, 2019 2018 2017 Cost of revenue: Products $ 507 $ 885 $ 473 Services 389 363 276 Research and development 3,913 5,969 4,869 Sales and marketing 3,415 5,787 3,433 General and administrative 2,957 4,469 3,317 $ 11,181 $ 17,473 $ 12,368 The following table summarizes the weighted-average grant date fair values of the Company’s stock-based awards granted in the periods indicated: Years Ended December 31, 2019 2018 2017 Stock options $ 3.66 $ 3.41 $ 3.19 RSUs $ 6.62 $ 6.66 $ 6.75 ESPP $ 2.04 $ 2.21 $ 1.76 Nonqualified ESPP $ 7.24 $ 7.34 $ 6.90 The Company values the RSUs and employee stock purchase rights under the Nonqualified ESPP at the closing market price of the Company’s common stock on the date of grant. The probability of meeting the performance condition related to the PSOs granted in December 2017 was assessed as probable as of December 31, 2018. As a result, the Company recognized a stock-based compensation expense of $6.9 million in 2018 and $1.6 million in 2019, based on a fair value assessment as of the date of modification. The probability of meeting one of the performance conditions related to the PSOs granted in February 2019 was assessed as probable as of December 31, 2019 . As a result, the Company recognized a cumulative stock-based compensation expense of $0.5 million in 2019, based on a fair value assessment as of the date of modification. The Company estimates the fair value of stock options and employee stock purchase right under the ESPP at the grant date using the Black-Scholes option-pricing model. This model requires the use of the following assumptions: (i) Expected volatility of the Company’s common stock – The Company computes its expected volatility assumption based on a blended volatility ( 50% historical volatility and 50% implied volatility from traded options on the Company’s common stock). The selection of a blended volatility assumption was based upon the Company’s assessment that a blended volatility is more representative of the Company’s future stock price trend as it weighs the historical volatility with the future implied volatility. (ii) Expected life of the option award – Represents the weighted-average period that the stock options are expected to remain outstanding. The Company’s computation of expected life utilizes the simplified method in accordance with Staff Accounting Bulletin No. 110 (“SAB 110”) due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The mid-point between the vesting date and the expiration date is used as the expected term under this method. (iii) Expected dividend yield – Assumption is based on the Company’s history of not paying dividends and no future expectations of dividend payouts. (iv) Risk-free interest rate – Based on the U.S. Treasury yield curve in effect at the time of grant with maturities approximating the grant’s expected life. The following table summarizes the weighted-average assumptions used in estimating the grant-date fair value of stock options and of each employee’s purchase right under the ESPP in the periods indicated: Years Ended December 31, Stock Options 2019 2018 2017 Expected volatility 47 % 50 % 52 % Expected life (years) 6.11 6.11 5.88 Expected dividend yield — — — Risk-free interest rate 1.67 % 2.83 % 2.10 % Years Ended December 31, ESPP 2019 2018 2017 Expected volatility 48 % 42 % 45 % Expected life (years) 0.49 0.50 0.49 Expected dividend yield — — — Risk-free interest rate 2.03 % 2.21 % 1.24 % In addition, the Company applies an estimated forfeiture rate to awards granted and records stock-based compensation expense only for those awards that are expected to vest. Forfeiture rates are estimated at the time of grant based on the Company’s historical experience. Further, to the extent the Company’s actual forfeiture rate is different from management’s estimate, stock-based compensation is adjusted accordingly. As of December 31, 2019 , unrecognized stock-based compensation expenses by award type, net of estimated forfeitures, and their expected weighted-average recognition periods are summarized in the following table (in thousands). December 31, 2019 Stock Option RSU ESPPs Unrecognized stock-based compensation expense $ 5,327 $ 1,254 $ 4,208 Weighted-average amortization period (in years) 2.9 0.6 1.1 The Company expects to recognize stock-based compensation expense of $7.1 million in 2020, $2.0 million in 2021, $1.0 million in 2022 and $0.7 million in 2023. Shares Reserved for Future Issuance The Company had common shares reserved for future issuance as follows (in thousands): December 31, 2019 2018 Stock options outstanding 6,877 4,442 Restricted stock units outstanding 334 788 Performance restricted stock units outstanding — 63 Shares available for future grant under 2019 Plan 2,034 2,306 Shares available for future issuance under ESPP 3,178 1,550 Shares available for future issuance under Nonqualified ESPP 2,021 2,764 14,444 11,913 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company sponsors a 401(k) tax-deferred savings plan for all employees who meet certain eligibility requirements. Participants may contribute, on a pre-tax basis, a percentage of their annual compensation, but not to exceed a maximum contribution amount pursuant to Section 401(k) of the Internal Revenue Code. The Company, at the discretion of the Board of Directors, may make additional matching contributions on behalf of the participants. The Company made matching contributions totaling $2.5 million , $2.5 million and $3.0 million in 2019 , 2018 and 2017 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The table below summarizes the changes in accumulated other comprehensive loss by component: Foreign Currency Translation Adjustments Balance at December 31, 2017 $ (169 ) Other comprehensive loss (584 ) Balance at December 31, 2018 (753 ) Other comprehensive loss (101 ) Balance at December 31, 2019 $ (854 ) Assets and liabilities of the Company’s wholly owned foreign subsidiaries are translated from their respective functional currencies at exchange rates in effect at the balance sheet date, and revenue and expenses are translated at the monthly average exchanges rates. These translations result in differences called foreign currency translation adjustments. Realized foreign currency transaction gains or losses were not significant during the years ended December 31, 2019 , 2018 and 2017 and are recorded in “Other income (expense), net” in the Company's Consolidated Statements of Comprehensive Loss. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of loss before provision for incomes taxes were as follows (in thousands): Years Ended December 31, 2019 2018 2017 Domestic $ (17,935 ) $ (20,463 ) $ (84,387 ) Foreign 1,403 1,695 2,598 $ (16,532 ) $ (18,768 ) $ (81,789 ) Provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Current: State $ 313 $ 105 $ 115 Foreign 835 360 577 Current income tax 1,148 465 692 Deferred foreign income tax 14 65 551 $ 1,162 $ 530 $ 1,243 The differences between the statutory tax rate and the effective tax rate, expressed as a percentage of loss before income taxes, were as follows: Years Ended December 31, 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 34.0 % State statutory rate 5.6 5.7 4.5 Foreign operations (2.8 ) 0.3 0.5 R&D tax credits 6.2 7.2 2.7 Foreign income inclusion (1.3 ) (1.2 ) (0.1 ) Non-deductible stock compensation (5.1 ) (4.3 ) (3.7 ) Other permanent items (2.0 ) (1.6 ) (0.4 ) Tax true-up (11.8 ) (2.3 ) (1.7 ) Valuation allowance (16.9 ) (25.6 ) 67.3 Tax reform — — (104.6 ) ASC 606 adjustment — (2.0 ) — Effective tax rate (7.1 )% (2.8 )% (1.5 )% The significant components of the Company’s deferred tax assets were as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 135,019 $ 132,420 Tax credit carryforwards 47,324 46,884 Depreciation and amortization 1,541 1,924 Accruals and reserves 9,316 10,021 Deferred revenue 8,488 7,815 Stock-based compensation 4,761 4,447 Intangible assets (111 ) 37 Other (10 ) 5 Gross deferred tax assets 206,328 203,553 Valuation allowance (206,339 ) (203,550 ) $ (11 ) $ 3 All deferred tax assets, along with any related valuation allowance, are classified in the Consolidated Balance Sheet as long-term. Management reviews the recognition of deferred tax assets to determine if realization of such assets is more likely than not. The realization of the Company’s deferred tax assets is dependent upon future earnings. The Company has been in a cumulative loss position since inception, which represents a significant piece of negative evidence. Using the more likely than not criteria specified in the applicable accounting guidance, this negative evidence cannot be overcome by positive evidence currently available to the Company. As a result, the Company has established a full valuation allowance against its deferred tax assets with the exception of certain foreign deferred tax assets. The Company’s valuation allowance increased by $2.8 million and $4.8 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019, the Company had U.S. federal and state net operating losses of approximately $608.9 million and $216.4 million , respectively. The U.S. federal net operating loss carryforwards have begun to expire and will continue to expire at various dates through 2039 if not utilized. The state net operating loss carryforwards have begun to expire and will continue to expire at various dates through 2039, if not utilized. Additionally, the Company has U.S. federal, California and other U.S. states research and development credits of approximately $35.0 million , $36.2 million and $3.0 million , respectively, as of December 31, 2019. The U.S. federal research and development credits will begin to expire in 2020 and the California research and development credits have no expiration date. The credits related to other various U.S. states have begun to expire and will continue to expire at various dates through 2034. In 2019, the Company reassessed its plan to continue to reinvest its foreign earnings overseas. The Company no longer asserts ASC 740-30 indefinite reinvestment of its historical non-U.S. earnings or future non-U.S. earnings. As such, the Company recorded a tax expense of $0.6 million for the estimated withholding, state income tax and foreign income tax associated with repatriating non-U.S. earnings back to the United States. Uncertain Tax Positions ASC 740, “Income Taxes,” prescribes a recognition threshold and measurement attribute to the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance also provides guidance on derecognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions. The standard requires the Company to recognize the financial statement effects of an uncertain tax position when it is more likely than not that such position will be sustained upon audit. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as interest expense and income tax expense, respectively, in statements of comprehensive loss. The following table reconciles the Company’s unrecognized tax benefits (in thousands): Years Ended December 31, 2019 2018 Balance at beginning of year $ 21,998 $ 20,289 Addition (reduction) for tax positions related to prior year (382 ) 516 Additions for tax positions related to current year 648 1,193 Balance at end of year $ 22,264 $ 21,998 As of December 31, 2019 and 2018 , the Company had unrecognized tax benefits of $22.3 million and $22.0 million , respectively, none of which would affect the Company’s effective tax rate if recognized. There were no accrued interest or penalties for uncertain income tax as of December 31, 2019 . The Company files tax returns in the United States and various state jurisdictions, the United Kingdom, China and Brazil. The tax years 2000 through 2019 remain open and subject to examination by the appropriate governmental agencies in the U.S. due to tax attribute carryforwards. |
Net Loss Per Common Share
Net Loss Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Net Loss Per Common Share The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except per share data): Years Ended December 31, 2019 2018 2017 Numerator: Net loss $ (17,694 ) $ (19,298 ) $ (83,032 ) Denominator: Weighted-average common shares outstanding 54,993 52,609 50,155 Basic and diluted net loss per common share $ (0.32 ) $ (0.37 ) $ (1.66 ) Potentially dilutive shares, weighted-average 6,607 5,833 3,446 Unvested restricted stock awards are included in the calculation of basic weighted-average shares because such shares are participating securities; however, the impact was immaterial. Potentially dilutive shares have been excluded from the computation of diluted net loss per common share when their effect is antidilutive. These antidilutive shares were primarily from stock options and RSUs. 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company develops, markets and sells communications access systems and software, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the Company unit level. Accordingly, the Company is considered to be in a single reporting segment and operating unit structure. The Company’s chief operating decision maker is the Company’s Chief Executive Officer, who reviews financial information presented on a Company-wide basis, for purposes of allocating resources and evaluating financial performance. Geographic Information: The following is a summary of revenue by geographic region based upon the location of the customers (in thousands): Years Ended December 31, 2019 2018 2017 (1) United States $ 365,586 $ 386,341 $ 452,956 Middle East 18,664 18,814 18,267 Canada 14,531 10,542 13,105 Europe 11,480 8,858 6,575 Caribbean 5,809 7,075 9,853 Other 8,260 9,690 9,611 $ 424,330 $ 441,320 $ 510,367 (1) Revenue amounts are accounted for under ASC 605 for 2017. The Company’s property and equipment, net of accumulated depreciation, are located in the following geographical areas (in thousands): December 31, 2019 2018 United States $ 20,510 $ 23,249 China 1,017 1,696 $ 21,527 $ 24,945 Contract Asset The primary contract asset is revenue recognized on professional services contracts where the services are transferred to the customer over time, which has yet to be billed, and is classified within accounts receivable. Amounts are billed in accordance with the agreed-upon contractual terms. The balance at December 31, 2018 was $5.9 million of which $1.0 million remained in the Company's Consolidated Balance Sheet at December 31, 2019 . The closing balance at December 31, 2019 was $5.0 million of which the Company expects to bill 82% of the balance during 2020. The decrease in the contract asset was driven by the timing and volume of professional services contracts with a major customer in fiscal 2019 partially offset by additional business from other customers. Contract Liability Deferred revenue consisted of the following (in thousands): December 31, 2019 2018 Current: Products and services $ 12,480 $ 11,600 Extended warranty 4,678 4,000 17,158 15,600 Long-term: Products and services 790 440 Extended warranty 17,550 17,056 18,340 17,496 $ 35,498 $ 33,096 The increase in the deferred revenue balance for the year ended December 31, 2019 is primarily driven by cash payments received or due in advance of satisfying the Company's performance obligations, offset by $15.0 million of revenue recognized that was included in the deferred revenue balance at the beginning of the year. Revenue allocated to remaining performance obligations represent contract revenue that has not yet been recognized for contracts greater than one year, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This amount was $57.7 million as of December 31, 2019 , and the Company expects to recognize 40% of such revenue over the next 12 months and the remainder thereafter. Contract Costs 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. As of December 31, 2019, the unamortized balance of deferred commissions was $0.7 million . For the year ended December 31, 2019, the amount of amortization was $0.2 million , and there was no impairment loss in relation to the costs capitalized. Concentration of Customer Risk Concentrations of credit risk in relation to customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenue of 10% or greater of total revenue are presented below for the periods indicated. Percentage of Accounts Receivable Percentage of Revenue December 31, Years Ended December 31, 2019 2018 2019 2018 2017 CenturyLink 17% 16% 15% 18% 31% |
Product Line Divestiture
Product Line Divestiture | 12 Months Ended |
Dec. 31, 2019 | |
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 a CM. 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 amortized this amount to service revenue over the corresponding 15-month period. The Company also recognized a $6.7 million gain for the year ended December 31, 2018 within operating expenses in the accompanying Consolidated Statements of Comprehensive Loss. |
Quarterly Financial Data_Unaudi
Quarterly Financial Data—Unaudited | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data—Unaudited | Quarterly Financial Data—Unaudited The Company’s fiscal year begins on January 1st and ends on December 31 st . Quarterly periods are based on a 4-4-5 fiscal calendar with the first, second and third fiscal quarters ending on the 13 th Saturday of each fiscal period. As a result, the Company had one fewer day in the first quarter of 2019 and one more day in the fourth quarter of 2019 than in the respective 2018 periods. The following table presents selected unaudited quarterly financial data of the Company (in thousands, except per share data). The Company’s quarterly results of operations for these periods are not necessarily indicative of future results of operations. Fiscal Year 2019 Quarter Ended March 30 June 29 September 28 December 31 Revenue $ 89,350 $ 100,304 $ 114,485 $ 120,191 Gross profit 38,343 44,668 50,202 54,712 Operating income (loss) (9,113 ) (4,931 ) (2,851 ) 1,494 Net income (loss) (9,767 ) (5,045 ) (3,379 ) 497 Net income (loss) per common share, basic and diluted $ (0.18 ) $ (0.09 ) $ (0.06 ) $ 0.01 Fiscal Year 2018 Quarter Ended March 31 June 30 September 29 December 31 Revenue $ 99,403 $ 111,702 $ 114,699 $ 115,516 Gross profit 42,059 50,866 52,833 51,624 Operating income (loss) (11,109 ) (2,926 ) 676 (5,155 ) Net income (loss) (11,736 ) (2,793 ) 809 (5,578 ) Net income (loss) per common share, basic and diluted $ (0.23 ) $ (0.05 ) $ 0.02 $ (0.10 ) |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In January 2020, the Company terminated the SVB Loan Agreement and entered into a new loan and security agreement with Bank of America, N.A. The new loan and security agreement (“BofA Loan Agreement”) provides for a revolving facility up to a principal amount of up to $35.0 million , including a $10.0 million sublimit for letters of credit. The BofA Loan Agreement matures, and all outstanding amounts become due and payable, in January 2023. The BofA Loan Agreement is secured by substantially all of the Company’s assets, including the Company’s intellectual property. Loans under the credit facility will bear interest at a rate per annum equal to LIBOR (customarily defined) plus an applicable margin between 1.50% to 2.25% and Prime Rate (customarily defined) plus an applicable margin between 0.50% to 1.25% , in each case largely based on a fixed charge coverage ratio measured at the end of each fiscal quarter. The Availability (as defined in the BofA Loan Agreement) of borrowings under the BofA Loan Agreement is subject to certain conditions and requirements, including among others, if at any time the Company’s Availability is less than $5.0 million , the Company must maintain a minimum fixed charge coverage ratio of 1.0 to 1.0. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Accounting Guidance The accompanying consolidated financial statements have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) and U.S. generally accepted accounting principles (“GAAP”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Applicable Accounting Guidance | Any reference in these notes to applicable accounting guidance (“guidance”) is meant to refer to the authoritative U.S. GAAP as found in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). |
Use of Estimates | Use of Estimates The preparation of financial statements is in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. For the Company, these estimates include, but are not limited to: allowances for doubtful accounts and sales returns, excess and obsolete inventory, allowances for obligations to its contract manufacturers, valuation of stock-based compensation, useful lives assigned to long-lived assets, standard and extended warranty costs and contingencies. Actual results could differ from those estimates, and such differences could be material to the Company’s financial position and results of operations. |
Revenue Recognition | 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. Payment terms to customers typically range from net 30 to net 90 days and vary by the size 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. Revenue Recognition 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. 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. Specifically, revenue from software platform licenses, which provides the customer with a right to use the software as it exists, is generally recognized upfront when made available to the customer. Revenue from cloud-based software subscriptions, customer support, maintenance, extended warranty subscriptions and managed services is generally recognized ratably over the contract term. Revenue from professional services and training is recognized as the services are completed. 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. 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 the output 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. The Company 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. |
Cost of Revenue | Cost of Revenue Cost of revenue consists primarily of finished goods inventory purchased from the Company’s contract manufacturers, payroll and related expenses associated with managing the relationships with contract manufacturers, depreciation of manufacturing test equipment, warranty and retrofit costs, excess and obsolete inventory costs, shipping charges and amortization of certain intangible assets. It also includes contractor and other costs of services incurred directly related to the delivery of services to customers. |
Warranty and Retrofit | Warranty and Retrofit The Company offers limited warranties for its hardware products for a period of one , three or five years, depending on the product type. The Company recognizes estimated costs related to warranty activities as a component of cost of revenue upon product shipment or upon identification of a specific product failure. 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 as a component of cost of revenue upon identification of such product failures. The Company recognizes estimated warranty and retrofit costs when it is probable that a liability has been incurred and the amount of loss is reasonably estimable. The estimates are based upon historical and projected product failure and claim rates, historical costs incurred in correcting product failures and information available related to any specifically identified product failures. Judgment is required in estimating costs associated with warranty and retrofit activities, and the Company's estimates are limited to information available to the Company at the time of such estimates. In some cases, such as when a specific product failure is first identified or a new product is introduced, the Company may initially have limited information and limited historical failure and claim rates upon which to base its estimates, and such estimates may require revision in future periods. The recorded amount is adjusted from time to time for specifically identified warranty and retrofit exposure. Actual warranty and retrofit expenses are charged against the Company’s estimated warranty and retrofit liability when incurred. Factors that affect the Company’s warranty and retrofit liability include the number of active installed units and historical and anticipated rates of warranty and retrofit claims and cost per claim. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense associated with stock options, performance stock options (“PSOs”), restricted stock units (“RSUs”) and purchase rights under the Amended and Restated Employee Stock Purchase Plan (the “ESPP”) and the Amended and Restated 2017 Nonqualified Employee Stock Purchase Plan (the “NQ ESPP”) is measured at the grant date based on the fair value of the award, and is recognized, net of forfeitures, as expense over the remaining requisite service period (generally the vesting period) on a straight-line basis. The fair value of stock option and employee stock purchase right under the ESPP is estimated at the grant date using the Black-Scholes option valuation model. The fair value of RSUs and employee stock purchase right under the Nonqualified ESPP is based on closing market price of the Company’s common stock on the date of grant. Stock-based compensation expense associated with PSOs with graded vesting features and which contain both a performance and a service condition is measured based on fair value of stock options estimated at the grant date using the Black-Scholes option valuation model, and is recognized, net of forfeitures, as expense over the requisite service period using the graded vesting attribution method. Compensation expense is only recognized if the Company has determined that it is probable that the performance condition will be met. The Company reassesses the probability of vesting at each reporting period and adjusts compensation expense based on its probability assessment. |
Loss Contingencies | Loss Contingencies From time to time, the Company is involved in legal proceedings arising from the normal course of business activities. The Company evaluates the likelihood of an unfavorable outcome of legal proceedings to which it is a party and accrues a loss contingency when the loss is probable and reasonably estimable. Assessing legal contingencies involves significant judgment and estimates, and the outcome of litigation is inherently uncertain and subject to numerous factors outside the Company’s control. Significant judgment is required when the Company assesses the likelihood of any adverse judgments or outcomes, including the potential range of possible losses, and whether losses are probable and reasonably estimable. Because of uncertainties related to these matters, the Company bases its estimates of whether a loss contingency is probable or reasonably possible, as well as the reasonable range of possible losses associated with each loss contingency, only on the information available at the time. As additional information becomes available, and at least quarterly, the Company reassesses the potential liability on each significant matter and may revise its estimates. These revisions could have a material impact on the Company’s business, operating results or financial condition. The actual outcome of these legal proceedings may materially differ from the Company’s estimates of potential liability, which could have a material adverse effect on the Company’s business, operating results or financial condition. |
Credit Risk and Inventory Supplier Concentrations | Credit Risk and Inventory Supplier Concentrations Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash equivalents consist of money market funds, which are invested through financial institutions in the United States. Deposits in these financial institutions may, at times, exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company also has approximately $2.4 million of cash held by its foreign subsidiaries in Brazil, China and the United Kingdom. Management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to these cash and cash equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, marketable securities, trade receivables, accounts payable, line of credit and other accrued liabilities approximate their fair value due to their relatively short-term nature. |
Cash, Cash Equivalents, Restricted Cash and Marketable Securities | Cash, Cash Equivalents, Restricted Cash and Marketable Securities Cash equivalents and marketable securities are stated at amounts that approximate fair value based on quoted market prices. Restricted cash is cash that is legally restricted as to withdrawal or usage. As of December 31, 2019 , the Company had $0.6 million in restricted cash related to a letter of credit in connection with its San Jose facility lease. The Company has invested its excess cash primarily in money market funds and highly liquid marketable securities such as corporate debt instruments, commercial paper and U.S. government agency securities. The Company considers all investments with maturities of three months or less when purchased to be cash equivalents. Marketable securities represent highly liquid corporate debt instruments, commercial paper and U.S. government agency securities with maturities greater than 90 days at date of purchase. Marketable securities with maturities greater than one year are classified as current because management considers all marketable securities to be available for current operations. The Company’s investments have been classified and accounted for as available-for-sale. Such investments are recorded at fair value and unrealized holding gains and losses are reported as a separate component of comprehensive loss in the stockholders’ equity until realized. Realized gains and losses on sales of marketable securities, if any, are determined on the specific identification method and are reclassified from accumulated other comprehensive loss to results of operations as “Other income (expense), net”. The Company had no investments as of December 31, 2019 and 2018. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company records a specific allowance based on an analysis of individual past-due balances. Additionally, based on historical write-offs and the Company’s collection experience, the Company records an additional allowance based on a percentage of outstanding receivables. The Company performs credit evaluations of its customers’ financial condition. These evaluations require judgment and are based on a variety of factors including, but not limited to, current economic trends, payment history and a financial review of the customer. Actual collection losses may differ from management’s estimates, and such differences could be material to the Company's financial position and results of operations. |
Inventory Valuation | Inventory Valuation Inventory, which primarily consists of finished goods purchased from CMs or ODMs, is stated at the lower of cost (determined by the first-in, first-out method) or market value. Inbound shipping costs and U.S. tariffs are included in cost of inventory. In addition, the Company, from time to time, procures component inventory primarily as a result of manufacturing discontinuation of critical components by suppliers. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based on the Company’s estimate of demand for its products, potential obsolescence of technology, product life cycles and whether pricing trends or forecasts indicate that the carrying value of inventory exceeds its estimated selling price. These factors are impacted by market and economic conditions, technology changes and new product introductions and require significant estimates that may include elements that are uncertain. Actual demand may differ from forecasted demand and may have a material effect on gross profit. If inventory is written down, a new cost basis is established that cannot be increased in future periods. Shipments from suppliers before the Company receives them are recorded as in-transit inventory when title and the significant risks and rewards of ownership have passed to the Company. |
Contract Costs | Contract Costs The Company capitalizes sales commissions primarily related to extended warranty and Calix Cloud contracts for which the expected amortization period is greater than one year. 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 Consolidated Balance Sheets. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and are depreciated using the straight-line method over the estimated useful life of each asset. Generally, computer equipment is depreciated over two years; purchased software is depreciated over three to five years; test equipment is depreciated over three years; furniture and fixtures are depreciated over seven years; and leasehold improvements are depreciated over the shorter of the respective lease term or the estimated useful life of the asset. Maintenance and repairs are charged to expense as incurred. |
Goodwill | Goodwill Goodwill was recorded as a result of the Company’s acquisitions of Occam Networks, Inc. in February 2011 and Optical Solutions, Inc. in February 2006. The Company records goodwill when consideration paid in a business acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized but instead is subject to an annual impairment test or more frequently if events or changes in circumstances indicate that it may be impaired. The Company evaluates goodwill on an annual basis as of the end of the second quarter of each fiscal year. Management has determined that it operates as a single reporting unit and, therefore, evaluates goodwill impairment at the enterprise level. In an annual impairment test, the Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In assessing the qualitative factors, management considers the impact of these key factors: macro-economic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. If the Company determines as a result of the qualitative assessment that it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, then the quantitative test is required. Otherwise, no further testing is required. In a quantitative test, the Company compares its fair value to its carrying value including goodwill. The Company determines its fair value using both an income approach and a market approach. Under the income approach, the Company determines fair value based on estimated future cash flows, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the Company and the rate of return an outside investor would expect to earn. Under the market-based approach, the Company utilizes information regarding the Company as well as publicly available industry information to determine earnings multiples that are used to value the Company. If the carrying value of the Company exceeds its fair value, the Company will determine the amount of impairment loss by comparing the implied fair value of goodwill with the carrying value of goodwill. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. At the end of the second quarter of 2019 , the Company completed its annual goodwill impairment test. Based on its assessment of the above qualitative factors, management concluded that the fair value of the Company was more likely than not greater than its carrying amount as of June 30, 2019 . As such, it was not necessary to perform the two-step quantitative goodwill impairment test at the time. |
Income Taxes | Income Taxes The Company evaluates its tax positions and estimates its current tax exposure along with assessing temporary differences that result from different book to tax treatment of items not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities on the Company’s Consolidated Balance Sheets, which are estimated based upon the difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates that will be in effect when these differences reverse. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in the Company’s Consolidated Statements of Comprehensive Loss become deductible expenses under applicable income tax laws or loss or credit carryforwards are utilized. Accordingly, realization of the Company’s deferred tax assets is dependent on future taxable income against which these deductions, losses and credits can be utilized. The Company must assess the likelihood that the Company’s deferred tax assets will be recovered from future taxable income, and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance. Management judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and any valuation allowance recorded against the Company’s net deferred tax assets. Excluding foreign operations, the Company recorded a full valuation allowance at each balance sheet date presented because, based on the available evidence, the Company believes it is more likely than not that it will not be able to utilize all of its deferred tax assets in the future. The Company intends to maintain the full valuation allowance until sufficient evidence exists to support the reversal of the valuation allowance. |
Recent Accounting Pronouncements | Newly Adopted Accounting Standards Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), which requires recognition of an asset and liability for lease arrangements longer than twelve months. The Company adopted the new standard effective January 1, 2019 using the effective date approach which eliminates the need to restate amounts presented prior to that date. The Company also elected the package of practical expedients but not the hindsight practical expedient. The adoption had a material impact on the Company's Consolidated Balance Sheets but did not impact the Company's Consolidated Statements of Comprehensive Loss, Cash Flows or Stockholders' Equity. Upon adoption on January 1, 2019, the Company recognized an operating lease right-of-use asset of $15.8 million and a lease liability of $16.7 million . Recent Accounting Pronouncements Not Yet Adopted There have been no accounting pronouncements or changes in accounting pronouncements that are significant or potentially significant to the Company. |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Summary of cash and cash equivalents | Cash, cash equivalents and restricted cash consisted of the following (in thousands): December 31, 2019 2018 Cash and cash equivalents: Cash $ 46,815 $ 45,806 Money market funds 14 3,840 Total cash and cash equivalents 46,829 49,646 Restricted cash 628 628 $ 47,457 $ 50,274 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, net | Accounts receivable, net consisted of the following (in thousands): December 31, 2019 2018 Accounts receivable $ 46,883 $ 67,396 Allowance for doubtful accounts (374 ) (370 ) $ 46,509 $ 67,026 |
Changes In Allowance For Doubtful Accounts And Product Reserve | The table below summarizes the changes in allowance for doubtful accounts and product return liability for the periods indicated (in thousands): Balance at Beginning of Year Additions Charged to Costs or Expenses or Revenue Deductions and Write Offs Balance at End of Year Year Ended December 31, 2019 Allowance for doubtful accounts $ 370 $ 168 $ (164 ) $ 374 Product return liability 880 1,620 (1,581 ) 919 Year Ended December 31, 2018 Allowance for doubtful accounts $ 579 $ (5 ) $ (204 ) $ 370 Product return liability 822 771 (713 ) 880 Year Ended December 31, 2017 Allowance for doubtful accounts $ 518 $ 103 $ (42 ) $ 579 Product return liability 938 3,682 (3,798 ) 822 |
Inventory | Inventory consisted of the following (in thousands): December 31, 2019 2018 Raw materials $ 656 $ 10,815 Finished goods 39,497 39,336 $ 40,153 $ 50,151 |
Property and Equipment, net | Property and equipment, net consisted of the following (in thousands): December 31, 2019 2018 Test equipment $ 37,001 $ 39,148 Software 20,646 24,355 Computer equipment 10,835 10,342 Furniture and fixtures 2,342 1,976 Leasehold improvements 2,047 3,559 72,871 79,380 Accumulated depreciation and amortization (51,344 ) (54,435 ) $ 21,527 $ 24,945 |
Schedule of Other Assets, Noncurrent | Other long-term assets consisted of the following (in thousands): December 31, 2019 2018 Intangible asset $ 12,148 $ — Capitalized cloud implementation costs 6,089 — Other long-term assets 1,203 1,203 $ 19,440 $ 1,203 |
Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, 2019 2018 Compensation and related benefits $ 19,010 $ 19,811 Warranty and retrofit 7,294 8,547 Customer advances or rebates 7,252 6,103 Professional and consulting fees 4,996 6,060 Current portion of financing arrangements 4,044 2,359 Operating leases 2,663 — Taxes payable 2,021 1,516 Component inventory held by suppliers 1,925 2,667 Operations 1,053 1,059 Product returns 919 880 Insurance 852 917 Freight 808 1,187 Business events — 1,696 Other 4,709 5,067 $ 57,546 $ 57,869 |
Schedule of Product Warranty Liability | Changes in the Company’s accrued warranty and retrofit liability were as follows (in thousands): Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 8,547 $ 8,708 $ 12,214 Provision for warranty and retrofit charged to cost of revenue 4,425 5,215 8,720 Utilization of reserve (5,678 ) (5,376 ) (12,226 ) Balance at end of year $ 7,294 $ 8,547 $ 8,708 |
Restructuring and Related Costs | The following table summarizes the activities pursuant to the above restructuring plans (in thousands): Severance and Related Benefits Facilities Total Balance as of December 31, 2017 $ 975 $ 442 $ 1,417 Restructuring charges for the year 5,203 502 5,705 Cash payments (6,178 ) (916 ) (7,094 ) Balance as of December 31, 2018 — 28 28 Cash payments — (28 ) (28 ) Balance as of December 31, 2019 $ — $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | Future minimum payments under the non-cancelable operating leases consisted of the following as of December 31, 2019 (in thousands): Year Ending December 31, Future Minimum Lease Payments 2020 $ 3,769 2021 3,604 2022 3,461 2023 3,578 2024 3,388 Thereafter 2,881 Total future minimum lease payments 20,681 Less imputed interest (3,681 ) $ 17,000 |
Lessee, Operating Leases | Operating lease liability consisted of the following (in thousands): December 31, Accrued liabilities - current portion of operating leases $ 2,663 Operating leases 14,337 $ 17,000 |
Schedule of Future Minimum Rental Payments for Operating Leases | Prior to the adoption of Topic 842, future minimum lease payments under the non-cancelable operating leases as of December 31, 2018 , which were undiscounted, were as follows (in thousands): Year Ending December 31, Future Minimum Lease Payments 2019 $ 3,750 2020 3,817 2021 3,468 2022 3,300 2023 3,411 Thereafter 6,053 $ 23,799 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Options Activity | The following table summarizes the activity of stock options under the Company’s equity incentive plans (in thousands, except per share data): Weighted- Average Weighted- Remaining Average Contractual Aggregate Number of Exercise Price Life Intrinsic Stock Options Shares Per Share (in years) Value (1) Outstanding as of December 31, 2018 4,442 $ 7.40 Granted 2,925 7.97 Exercised (74 ) 5.94 Canceled (416 ) 7.45 Outstanding as of December 31, 2019 6,877 $ 7.66 7.3 $ 5,303 Vested and expected to vest as of December 31, 2019 6,782 $ 7.66 7.3 $ 5,235 Options exercisable as of December 31, 2019 3,199 $ 7.82 5.3 $ 3,448 (1) Amounts represent the difference between the exercise price and the fair market value of common stock at December 31, 2019 of $8.00 per share for all in the money options outstanding. |
Schedule of Restricted Stock and Restricted Stock Units Activity | The following table summarizes the activities of the Company’s RSUs and PRSUs under the Company’s equity incentive plans (in thousands, except per share data): RSUs PRSUs Weighted- Weighted- Average Average Grant Date Grant Date Number of Fair Value Number of Fair Value Shares Per Share Shares Per Share Outstanding at December 31, 2018 788 $ 7.26 63 $ 7.42 Granted 190 6.62 — — Vested (571 ) 7.39 (63 ) 7.42 Canceled (73 ) 7.10 — — Outstanding at December 31, 2019 334 $ 6.71 — $ — |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarizes stock-based compensation expense (in thousands): Years Ended December 31, 2019 2018 2017 Cost of revenue: Products $ 507 $ 885 $ 473 Services 389 363 276 Research and development 3,913 5,969 4,869 Sales and marketing 3,415 5,787 3,433 General and administrative 2,957 4,469 3,317 $ 11,181 $ 17,473 $ 12,368 |
Schedule of Grant Date Fair Values | The following table summarizes the weighted-average grant date fair values of the Company’s stock-based awards granted in the periods indicated: Years Ended December 31, 2019 2018 2017 Stock options $ 3.66 $ 3.41 $ 3.19 RSUs $ 6.62 $ 6.66 $ 6.75 ESPP $ 2.04 $ 2.21 $ 1.76 Nonqualified ESPP $ 7.24 $ 7.34 $ 6.90 |
Valuation Assumptions, Stock Options | The following table summarizes the weighted-average assumptions used in estimating the grant-date fair value of stock options and of each employee’s purchase right under the ESPP in the periods indicated: Years Ended December 31, Stock Options 2019 2018 2017 Expected volatility 47 % 50 % 52 % Expected life (years) 6.11 6.11 5.88 Expected dividend yield — — — Risk-free interest rate 1.67 % 2.83 % 2.10 % |
Valuation Assumptions, ESPP | Years Ended December 31, ESPP 2019 2018 2017 Expected volatility 48 % 42 % 45 % Expected life (years) 0.49 0.50 0.49 Expected dividend yield — — — Risk-free interest rate 2.03 % 2.21 % 1.24 % |
Schedule of Unrecognized Compensation Cost | As of December 31, 2019 , unrecognized stock-based compensation expenses by award type, net of estimated forfeitures, and their expected weighted-average recognition periods are summarized in the following table (in thousands). December 31, 2019 Stock Option RSU ESPPs Unrecognized stock-based compensation expense $ 5,327 $ 1,254 $ 4,208 Weighted-average amortization period (in years) 2.9 0.6 1.1 |
Shares Reserved For Future Issuance | Shares Reserved for Future Issuance The Company had common shares reserved for future issuance as follows (in thousands): December 31, 2019 2018 Stock options outstanding 6,877 4,442 Restricted stock units outstanding 334 788 Performance restricted stock units outstanding — 63 Shares available for future grant under 2019 Plan 2,034 2,306 Shares available for future issuance under ESPP 3,178 1,550 Shares available for future issuance under Nonqualified ESPP 2,021 2,764 14,444 11,913 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below summarizes the changes in accumulated other comprehensive loss by component: Foreign Currency Translation Adjustments Balance at December 31, 2017 $ (169 ) Other comprehensive loss (584 ) Balance at December 31, 2018 (753 ) Other comprehensive loss (101 ) Balance at December 31, 2019 $ (854 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of loss before provision for incomes taxes were as follows (in thousands): Years Ended December 31, 2019 2018 2017 Domestic $ (17,935 ) $ (20,463 ) $ (84,387 ) Foreign 1,403 1,695 2,598 $ (16,532 ) $ (18,768 ) $ (81,789 ) |
Schedule of Components of Income Tax Expense (Benefit) | Provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Current: State $ 313 $ 105 $ 115 Foreign 835 360 577 Current income tax 1,148 465 692 Deferred foreign income tax 14 65 551 $ 1,162 $ 530 $ 1,243 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between the statutory tax rate and the effective tax rate, expressed as a percentage of loss before income taxes, were as follows: Years Ended December 31, 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 34.0 % State statutory rate 5.6 5.7 4.5 Foreign operations (2.8 ) 0.3 0.5 R&D tax credits 6.2 7.2 2.7 Foreign income inclusion (1.3 ) (1.2 ) (0.1 ) Non-deductible stock compensation (5.1 ) (4.3 ) (3.7 ) Other permanent items (2.0 ) (1.6 ) (0.4 ) Tax true-up (11.8 ) (2.3 ) (1.7 ) Valuation allowance (16.9 ) (25.6 ) 67.3 Tax reform — — (104.6 ) ASC 606 adjustment — (2.0 ) — Effective tax rate (7.1 )% (2.8 )% (1.5 )% |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets were as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 135,019 $ 132,420 Tax credit carryforwards 47,324 46,884 Depreciation and amortization 1,541 1,924 Accruals and reserves 9,316 10,021 Deferred revenue 8,488 7,815 Stock-based compensation 4,761 4,447 Intangible assets (111 ) 37 Other (10 ) 5 Gross deferred tax assets 206,328 203,553 Valuation allowance (206,339 ) (203,550 ) $ (11 ) $ 3 |
Unrecognized Tax Benefits Activity | The following table reconciles the Company’s unrecognized tax benefits (in thousands): Years Ended December 31, 2019 2018 Balance at beginning of year $ 21,998 $ 20,289 Addition (reduction) for tax positions related to prior year (382 ) 516 Additions for tax positions related to current year 648 1,193 Balance at end of year $ 22,264 $ 21,998 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of net loss per share | The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except per share data): Years Ended December 31, 2019 2018 2017 Numerator: Net loss $ (17,694 ) $ (19,298 ) $ (83,032 ) Denominator: Weighted-average common shares outstanding 54,993 52,609 50,155 Basic and diluted net loss per common share $ (0.32 ) $ (0.37 ) $ (1.66 ) Potentially dilutive shares, weighted-average 6,607 5,833 3,446 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Concentrations of credit risk in relation to customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenue of 10% or greater of total revenue are presented below for the periods indicated. Percentage of Accounts Receivable Percentage of Revenue December 31, Years Ended December 31, 2019 2018 2019 2018 2017 CenturyLink 17% 16% 15% 18% 31% |
Revenue by Geographic Region | The following is a summary of revenue by geographic region based upon the location of the customers (in thousands): Years Ended December 31, 2019 2018 2017 (1) United States $ 365,586 $ 386,341 $ 452,956 Middle East 18,664 18,814 18,267 Canada 14,531 10,542 13,105 Europe 11,480 8,858 6,575 Caribbean 5,809 7,075 9,853 Other 8,260 9,690 9,611 $ 424,330 $ 441,320 $ 510,367 (1) Revenue amounts are accounted for under ASC 605 for 2017. |
Property and Equipment by Geographic Region | The Company’s property and equipment, net of accumulated depreciation, are located in the following geographical areas (in thousands): December 31, 2019 2018 United States $ 20,510 $ 23,249 China 1,017 1,696 $ 21,527 $ 24,945 |
Contract with Customer, Asset and Liability | Deferred revenue consisted of the following (in thousands): December 31, 2019 2018 Current: Products and services $ 12,480 $ 11,600 Extended warranty 4,678 4,000 17,158 15,600 Long-term: Products and services 790 440 Extended warranty 17,550 17,056 18,340 17,496 $ 35,498 $ 33,096 |
Quarterly Financial Data_Unau_2
Quarterly Financial Data—Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents selected unaudited quarterly financial data of the Company (in thousands, except per share data). The Company’s quarterly results of operations for these periods are not necessarily indicative of future results of operations. Fiscal Year 2019 Quarter Ended March 30 June 29 September 28 December 31 Revenue $ 89,350 $ 100,304 $ 114,485 $ 120,191 Gross profit 38,343 44,668 50,202 54,712 Operating income (loss) (9,113 ) (4,931 ) (2,851 ) 1,494 Net income (loss) (9,767 ) (5,045 ) (3,379 ) 497 Net income (loss) per common share, basic and diluted $ (0.18 ) $ (0.09 ) $ (0.06 ) $ 0.01 Fiscal Year 2018 Quarter Ended March 31 June 30 September 29 December 31 Revenue $ 99,403 $ 111,702 $ 114,699 $ 115,516 Gross profit 42,059 50,866 52,833 51,624 Operating income (loss) (11,109 ) (2,926 ) 676 (5,155 ) Net income (loss) (11,736 ) (2,793 ) 809 (5,578 ) Net income (loss) per common share, basic and diluted $ (0.23 ) $ (0.05 ) $ 0.02 $ (0.10 ) |
Description of Business and S_3
Description of Business and Significant Accounting Policies - Customer Concentration Risk (Details) $ in Millions | Dec. 31, 2019USD ($) |
Concentration Risk [Line Items] | |
Cash held by foreign subsidiaries | $ 2.4 |
Description of Business and S_4
Description of Business and Significant Accounting Policies - Contract Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |
Capitalized contract cost, gross | $ 0.7 |
Capitalized contract cost, amortization | $ 0.2 |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Capitalized contract cost, amortization period | 3 years |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Capitalized contract cost, amortization period | 10 years |
Description of Business and S_5
Description of Business and Significant Accounting Policies - Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 2 years |
Purchased Software | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Test Equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 7 years |
Description of Business and S_6
Description of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Schedule of Certain Terms [Line Items] | ||||
Product warranty period | 3 years | |||
Restricted cash | $ 628,000 | $ 628,000 | ||
Goodwill, impairment loss | 0 | 0 | $ 0 | |
Operating lease, right-of-use asset | 15,864,000 | $ 0 | ||
Operating lease, liability | $ 17,000,000 | |||
Minimum | ||||
Schedule of Certain Terms [Line Items] | ||||
Product warranty period | 1 year | |||
Maximum | ||||
Schedule of Certain Terms [Line Items] | ||||
Product warranty period | 5 years | |||
Accounting Standards Update 2016-02 | ||||
Schedule of Certain Terms [Line Items] | ||||
Operating lease, right-of-use asset | $ 15,800,000 | |||
Operating lease, liability | $ 16,700,000 |
Description of Business and S_7
Description of Business and Significant Accounting Policies - Performance Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 29, 2018 |
Accounting Policies [Abstract] | ||
Performance obligations expected to be satisfied | $ 57.7 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, percentage | 40.00% | |
Performance obligations expected to be satisfied, expected timing | 1 year | 1 year |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | $ 46,829 | $ 49,646 | ||
Restricted cash | 628 | 628 | ||
Total cash | 47,457 | 50,274 | $ 39,775 | $ 50,359 |
Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | 46,815 | 45,806 | ||
Money market funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | $ 14 | $ 3,840 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 14 | $ 3,800 |
Balance Sheet Details - Account
Balance Sheet Details - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of accounts receivable, net | ||
Accounts receivable | $ 46,883 | $ 67,396 |
Allowance for doubtful accounts | (374) | (370) |
Accounts receivable, net | $ 46,509 | $ 67,026 |
Balance Sheet Details - Allowan
Balance Sheet Details - Allowance and Product Return Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 370 | $ 579 | $ 518 |
Additions Charged to Costs or Expenses or Revenue | 168 | (5) | 103 |
Deductions and Write Offs | (164) | (204) | (42) |
Balance at End of Year | 374 | 370 | 579 |
Product return liability | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 880 | 822 | 938 |
Additions Charged to Costs or Expenses or Revenue | 1,620 | 771 | 3,682 |
Deductions and Write Offs | (1,581) | (713) | (3,798) |
Balance at End of Year | $ 919 | $ 880 | $ 822 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of inventory, net | ||
Raw materials | $ 656 | $ 10,815 |
Finished goods | 39,497 | 39,336 |
Total inventory | $ 40,153 | $ 50,151 |
Balance Sheet Details - Propert
Balance Sheet Details - Property and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 72,871 | $ 79,380 | |
Accumulated depreciation and amortization | (51,344) | (54,435) | |
Property and equipment, net | 21,527 | 24,945 | |
Depreciation and amortization | 10,316 | 9,187 | $ 10,991 |
Test equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 37,001 | 39,148 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 20,646 | 24,355 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 10,835 | 10,342 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,342 | 1,976 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,047 | $ 3,559 |
Balance Sheet Details - Loss on
Balance Sheet Details - Loss on Asset Retirement (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Sep. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Loss on asset retirement | $ 2,474 | $ 0 | $ 0 | ||
Intangible asset | 12,148 | 0 | |||
Capitalized cloud implementation costs | 6,089 | 0 | |||
Other long-term assets | 1,203 | 1,203 | |||
Other assets | 19,440 | 1,203 | |||
Other long-term liabilities | 14,625 | $ 3,972 | |||
Licensed Software | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Loss on asset retirement | $ 2,500 | ||||
Royalty payment commitment amount | $ 15,800 | ||||
Royalty payment commitment period | 3 years | ||||
Intangible assets, current | 13,200 | ||||
Other liabilities | $ 13,200 | ||||
Other long-term liabilities | $ 13,500 | ||||
Discount rate | 6.50% | ||||
Useful life | 5 years |
Balance Sheet Details - Accrued
Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of accrued liabilities | ||
Compensation and related benefits | $ 19,010 | $ 19,811 |
Warranty and retrofit | 7,294 | 8,547 |
Customer advances or rebates | 7,252 | 6,103 |
Professional and consulting fees | 4,996 | 6,060 |
Current portion of financing arrangements | 4,044 | 2,359 |
Operating leases | 2,663 | 0 |
Taxes payable | 2,021 | 1,516 |
Component inventory held by suppliers | 1,925 | 2,667 |
Operations | 1,053 | 1,059 |
Product returns | 919 | 880 |
Insurance | 852 | 917 |
Freight | 808 | 1,187 |
Business events | 0 | 1,696 |
Other | 4,709 | 5,067 |
Total accrued liabilities | $ 57,546 | $ 57,869 |
Balance Sheet Details - Product
Balance Sheet Details - Product Warranty Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Product warranty activities [Roll Forward] | |||
Balance at beginning of period | $ 8,547 | $ 8,708 | $ 12,214 |
Provision for warranty and retrofit charged to cost of revenue | 4,425 | 5,215 | 8,720 |
Utilization of reserve | (5,678) | (5,376) | (12,226) |
Balance at end of period | $ 7,294 | $ 8,547 | $ 8,708 |
Balance Sheet Details - Restruc
Balance Sheet Details - Restructuring (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | $ 28 | $ 1,417 | |
Restructuring charges for the year | 0 | 5,705 | $ 4,249 |
Cash payments | (28) | (7,094) | |
Balance at end of period | 0 | 28 | 1,417 |
Severance and Related Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | 975 | |
Restructuring charges for the year | 5,203 | ||
Cash payments | 0 | (6,178) | |
Balance at end of period | 0 | 0 | 975 |
Facilities | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 28 | 442 | |
Restructuring charges for the year | 502 | ||
Cash payments | (28) | (916) | |
Balance at end of period | $ 0 | $ 28 | $ 442 |
Credit Agreements (Details)
Credit Agreements (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 07, 2017 | |
Line of Credit Facility [Line Items] | ||||
Line of credit | $ 30,000,000 | $ 30,000,000 | ||
Research And Development Equipment | ||||
Line of Credit Facility [Line Items] | ||||
Purchase obligation | $ 5,100,000 | |||
Purchase obligation, term | 36 months | |||
Weighted average interest rate | 6.20% | |||
Long-term debt | $ 2,900,000 | |||
Silicon Valley Bank | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum capacity | $ 30,000,000 | |||
Interest rate | 6.30% | 7.00% | ||
Consulting Services | ||||
Line of Credit Facility [Line Items] | ||||
Purchase obligation | $ 5,400,000 | |||
Financing arrangements, non-cash investing activities | $ 2,000,000 | $ 1,800,000 | $ 1,600,000 | |
Purchase obligation, term | 2 years 5 months | |||
Weighted average interest rate | 6.50% | |||
Long-term debt | $ 2,100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Operating Lease (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 3,769 |
2021 | 3,604 |
2022 | 3,461 |
2023 | 3,578 |
2024 | 3,388 |
Thereafter | 2,881 |
Total future minimum lease payments | 20,681 |
Less imputed interest | (3,681) |
Operating lease, liability | $ 17,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued liabilities - current portion of operating leases | $ 2,663 | $ 0 |
Operating leases | 14,337 | $ 0 |
Operating lease liability | $ 17,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Minimum Payments Under Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 3,750 |
2020 | 3,817 |
2021 | 3,468 |
2022 | 3,300 |
2023 | 3,411 |
Thereafter | 6,053 |
Total | $ 23,799 |
Commitments and Contingencies_4
Commitments and Contingencies - Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 30, 2019 | Aug. 31, 2018 | |
Loss Contingencies [Line Items] | |||||
Total future minimum lease payments | $ 20,681 | ||||
Operating lease, right-of-use asset | $ 15,864 | $ 0 | |||
Operating lease, weighted average discount rate, percent | 7.00% | ||||
Operating lease, weighted average remaining lease term | 5 years 1 month 12 days | ||||
Rent expense | $ 4,700 | 3,400 | $ 3,700 | ||
Operating lease, payments | 3,700 | ||||
Purchase commitments | 52,500 | ||||
Accrued professional and consulting fees | 1,925 | $ 2,667 | |||
San Jose, California | |||||
Loss Contingencies [Line Items] | |||||
Total future minimum lease payments | $ 14,000 | ||||
Petaluma, CA | |||||
Loss Contingencies [Line Items] | |||||
Total future minimum lease payments | $ 2,500 | ||||
Operating lease, right-of-use asset | $ 2,200 | ||||
Term of contract | 64 months |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Stock Options, Number of Shares: | |
Stock options outstanding, beginning | shares | 4,442 |
Stock options granted | shares | 2,925 |
Stock options exercised | shares | (74) |
Stock options forfeited | shares | (416) |
Stock options outstanding, ending | shares | 6,877 |
Stock options vested and expected to vest | shares | 6,782 |
Stock options exercisable | shares | 3,199 |
Stock Options, Weighted-Average Exercise Price Per Share: | |
Stock options outstanding, beginning (in dollars per share) | $ 7.40 |
Stock options granted (in dollars per share) | 7.97 |
Stock options exercised (in dollars per share) | 5.94 |
Stock options forfeited (in dollars per share) | 7.45 |
Stock options outstanding, ending (in dollars per share) | 7.66 |
Stock options vested and expected to vest (in dollars per share) | 7.66 |
Stock options exercisable (in dollars per share) | $ 7.82 |
Weighted-average remaining contractual term, stock options outstanding | 7 years 4 months 6 days |
Weighted-average remaining contractual term, stock options vested and expected to vest | 7 years 3 months 23 days |
Weighted-average remaining contractual term, stock options exercisable | 5 years 3 months 18 days |
Aggregate intrinsic value, stock options outstanding | $ | $ 5,303 |
Aggregate intrinsic value, stock options vested and expected to vest | $ | 5,235 |
Aggregate intrinsic value, stock options exercisable | $ | $ 3,448 |
Stock options, intrinsic value per share (in dollars per share) | $ 8 |
Stockholders' Equity - RSU, PRS
Stockholders' Equity - RSU, PRSU and RSA Activities (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RSUs | |||
RSU, PRSU and RSA, Number of Shares: | |||
Outstanding, beginning | 788 | ||
Granted | 190 | ||
Vested | (571) | ||
Canceled | (73) | ||
Outstanding, ending | 334 | 788 | |
RSU, PRSU and RSA, Weighted-Average Grant Date Fair Value Per Value: | |||
Outstanding, beginning (in dollars per share) | $ 7.26 | ||
Granted (in dollars per share) | 6.62 | $ 6.66 | $ 6.75 |
Vested (in dollars per share) | 7.39 | ||
Canceled (in dollars per share) | 7.10 | ||
Outstanding, ending (in dollars per share) | $ 6.71 | $ 7.26 | |
PRSUs | |||
RSU, PRSU and RSA, Number of Shares: | |||
Outstanding, beginning | 63 | ||
Granted | 0 | ||
Vested | (63) | ||
Canceled | 0 | ||
Outstanding, ending | 0 | 63 | |
RSU, PRSU and RSA, Weighted-Average Grant Date Fair Value Per Value: | |||
Outstanding, beginning (in dollars per share) | $ 7.42 | ||
Granted (in dollars per share) | 0 | ||
Vested (in dollars per share) | 7.42 | ||
Canceled (in dollars per share) | 0 | ||
Outstanding, ending (in dollars per share) | $ 0 | $ 7.42 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value of Awards Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share, stock options | $ 3.66 | $ 3.41 | $ 3.19 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share | 6.62 | 6.66 | 6.75 |
PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share | 0 | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share | 2.04 | 2.21 | 1.76 |
2017 Nonqualified Employee Stock Purchase Plan | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share | $ 7.24 | $ 7.34 | $ 6.90 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation | $ 11,181 | $ 17,473 | $ 12,368 |
Products | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation | 507 | 885 | 473 |
Services | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation | 389 | 363 | 276 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation | 3,913 | 5,969 | 4,869 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation | 3,415 | 5,787 | 3,433 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation | $ 2,957 | $ 4,469 | $ 3,317 |
Stockholders' Equity - Assumpti
Stockholders' Equity - Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options | |||
Weighted average assumptions used to estimate fair value of stock options | |||
Expected volatility | 47.00% | 50.00% | 52.00% |
Expected life | 6 years 1 month 10 days | 6 years 1 month 10 days | 5 years 10 months 17 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.67% | 2.83% | 2.10% |
ESPP | |||
Weighted average assumptions used to estimate fair value of stock options | |||
Expected volatility | 48.00% | 42.00% | 45.00% |
Expected life | 5 months 27 days | 5 months 29 days | 5 months 27 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 2.03% | 2.21% | 1.24% |
Stockholders' Equity - Unrecogn
Stockholders' Equity - Unrecognized Stock-based Compensation Expenses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation expense to be recognized in 2018 | $ 7,100 |
Stock-based compensation expense to be recognized in 2019 | 2,000 |
Stock-based compensation expense to be recognized in 2020 | 1,000 |
Stock-based compensation expense to be recognized in 2021 | 700 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 5,327 |
Weighted-average amortization period | 2 years 11 months |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 1,254 |
Weighted-average amortization period | 7 months |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 4,208 |
Weighted-average amortization period | 1 year 23 days |
Stockholders' Equity - Shares R
Stockholders' Equity - Shares Reserved For Future Issuance (Details) - shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding | 6,877 | 4,442 |
Shares available for future issuance under ESPP | 14,444 | 11,913 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding awards, instruments other than options | 334 | 788 |
PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding awards, instruments other than options | 0 | 63 |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future issuance under ESPP | 3,178 | 1,550 |
2010 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future grant under 2019 Plan | 2,034 | 2,306 |
2017 Nonqualified Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future issuance under ESPP | 2,000 | |
2017 Nonqualified Employee Stock Purchase Plan | ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future issuance under ESPP | 2,021 | 2,764 |
Stockholders' Equity - Textual
Stockholders' Equity - Textual (Details) $ / shares in Units, $ in Thousands | May 16, 2018shares | Mar. 21, 2010 | Aug. 31, 2019 | May 31, 2019shares | Feb. 28, 2019$ / sharesshares | Dec. 31, 2017shares | Oct. 31, 2017$ / sharesshares | Aug. 31, 2017 | Sep. 29, 2018USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016 | Apr. 30, 2019shares | May 17, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Dividends declared or paid | $ / shares | $ 0 | ||||||||||||||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | |||||||||||||
Stock split, conversion ratio | 1.5 | ||||||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||||||||
Shares available for future issuance under ESPP | 14,444,000 | 11,913,000 | |||||||||||||
Stock-based compensation | $ | $ 11,181 | $ 17,473 | $ 12,368 | ||||||||||||
Stock options granted | 2,925,000 | ||||||||||||||
Weighted-average grant date fair value per share, stock options | $ / shares | $ 3.66 | $ 3.41 | $ 3.19 | ||||||||||||
Total intrinsic value for exercised stock options | $ | $ 200 | $ 100 | $ 10 | ||||||||||||
Exercise of stock options | $ | 400 | 384 | 62 | ||||||||||||
Total fair value of stock options vested | $ | 7,600 | 2,700 | 2,100 | ||||||||||||
Stock based compensation | $ | $ 11,181 | $ 17,473 | $ 12,368 | ||||||||||||
Percent of historical volatility | 50.00% | ||||||||||||||
Percent of implied volatility | 50.00% | ||||||||||||||
RSUs | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Conversion basis description | Each RSU granted under the 2019 Plan represents a right to receive one share of the Company’s common stock (subject to adjustment for certain specified changes in the capital structure of the Company) upon the completion of a specific period of continued service. | ||||||||||||||
Awards granted, shares | 190,000 | ||||||||||||||
Grant date fair value (in dollars per share) | $ / shares | $ 6.71 | $ 7.26 | |||||||||||||
PRSUs | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Awards granted, shares | 0 | ||||||||||||||
Grant date fair value (in dollars per share) | $ / shares | $ 0 | $ 7.42 | |||||||||||||
Stock based compensation | $ | $ 1,600 | $ 6,900 | |||||||||||||
Stock based compensation, cumulative | $ | $ 500 | ||||||||||||||
ESPP | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares available for future issuance under ESPP | 3,178,000 | 1,550,000 | |||||||||||||
Shares purchased for award | 900,000 | ||||||||||||||
Shares issued in period | 900,000 | ||||||||||||||
Maximum employee subscription rate | 15.00% | ||||||||||||||
Maximum number of shares employee can purchase during offering period | 2,000 | ||||||||||||||
ESPP, discounted purchase price percentage | 85.00% | ||||||||||||||
Offering period | 6 months | ||||||||||||||
Number of additional shares authorized (in shares) | 2,500,000 | ||||||||||||||
Shares authorized | 9,800,000 | 7,300,000 | |||||||||||||
2019 Equity Incentive Award Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares available for future grant | 1,700,000 | 2,000,000 | |||||||||||||
2010 Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares available for future grant | 2,034,000 | 2,306,000 | |||||||||||||
Minimum exercise price of stock option, percentage | 100.00% | ||||||||||||||
Contractual term, stock options | 10 years | ||||||||||||||
2010 Plan | RSUs | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Vesting period | 4 years | ||||||||||||||
RSU granted converted into common stock | 1 | ||||||||||||||
Award vesting rights, percentage | 25.00% | ||||||||||||||
2017 Nonqualified Employee Stock Purchase Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares available for future issuance under ESPP | 2,000,000 | ||||||||||||||
Maximum contribution percent | 25.00% | ||||||||||||||
Shares purchased for award | 500,000 | ||||||||||||||
Shares issued in period | 300,000 | ||||||||||||||
Number of additional shares authorized (in shares) | 2,500,000 | ||||||||||||||
Shares authorized | 3,500,000 | ||||||||||||||
Number of shares authorized per purchase period | 500,000 | ||||||||||||||
2017 Nonqualified Employee Stock Purchase Plan | ESPP | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares available for future issuance under ESPP | 2,021,000 | 2,764,000 | |||||||||||||
Period One | Performance Based Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting rights, percentage | 50.00% | ||||||||||||||
Period One | 2010 Plan | Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting rights, percentage | 25.00% | 25.00% | |||||||||||||
Period Two | Performance Based Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting rights, percentage | 6.25% | ||||||||||||||
Period Two | 2010 Plan | Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Vesting period | 3 years | 3 years | |||||||||||||
Executive Officer | Performance Based Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Awards granted, shares | 2,000,000 | 1,600,000 | |||||||||||||
Performance period | 1 year | 1 year | |||||||||||||
Subsequent performance period | 3 years | 2 years | |||||||||||||
Target achievement performance threshold, percent | 125.00% | ||||||||||||||
Percent of shares received upon meeting targets | 40.00% | 100.00% | |||||||||||||
Stock-based compensation | $ | $ 500 | ||||||||||||||
Grant date fair value (in dollars per share) | $ / shares | $ 8.03 | ||||||||||||||
Executive Officer | Period One | Performance Based Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting rights, percentage | 25.00% | ||||||||||||||
Executive Officer | Period Two | Performance Based Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Vesting period | 3 years | ||||||||||||||
Award vesting rights, percentage | 75.00% | ||||||||||||||
Chief Financial Officer | Inducement Award | Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Vesting period | 4 years | ||||||||||||||
Stock options granted | 300,000 | ||||||||||||||
Weighted-average grant date fair value per share, stock options | $ / shares | $ 5.05 | ||||||||||||||
Chief Financial Officer | Period One | Inducement Award | Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting, anniversary period | 1 year | ||||||||||||||
Award vesting rights, percentage | 25.00% | ||||||||||||||
Chief Financial Officer | Period Two | Inducement Award | Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Vesting period | 3 years | ||||||||||||||
Maximum | Executive Officer | Performance Based Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Percent of shares received upon meeting targets | 200.00% |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Company matching contributions, 401(K) Plan | $ 2.5 | $ 2.5 | $ 3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | $ 151,934 | $ 144,963 |
Balance at end of period | 154,028 | 151,934 |
Foreign Currency Translation Adjustments | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | (753) | (169) |
Other comprehensive income | (101) | (584) |
Balance at end of period | (854) | (753) |
Total | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | (753) | (169) |
Balance at end of period | $ (854) | $ (753) |
Income Taxes - Loss before Prov
Income Taxes - Loss before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (17,935) | $ (20,463) | $ (84,387) |
Foreign | 1,403 | 1,695 | 2,598 |
Loss before provision for income taxes | $ (16,532) | $ (18,768) | $ (81,789) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
State | $ 313 | $ 105 | $ 115 |
Foreign | 835 | 360 | 577 |
Current income tax | 1,148 | 465 | 692 |
Deferred foreign income tax | 14 | 65 | 551 |
Provision for income taxes | $ 1,162 | $ 530 | $ 1,243 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 34.00% |
State statutory rate | 5.60% | 5.70% | 4.50% |
Foreign operations | (2.80%) | 0.30% | 0.50% |
R&D tax credits | 6.20% | 7.20% | 2.70% |
Foreign income inclusion | (1.30%) | (1.20%) | (0.10%) |
Non-deductible stock compensation | (5.10%) | (4.30%) | (3.70%) |
Other permanent items | (2.00%) | (1.60%) | (0.40%) |
Tax true-up | (11.80%) | (2.30%) | (1.70%) |
Valuation allowance | (16.90%) | (25.60%) | 67.30% |
Tax reform | 0 | 0 | (1.046) |
ASC 606 adjustment | 0.00% | (2.00%) | 0.00% |
Effective tax rate | (7.10%) | (2.80%) | (1.50%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 135,019 | $ 132,420 |
Tax credit carryforwards | 47,324 | 46,884 |
Depreciation and amortization | 1,541 | 1,924 |
Accruals and reserves | 9,316 | 10,021 |
Deferred revenue | 8,488 | 7,815 |
Stock-based compensation | 4,761 | 4,447 |
Intangible assets | (111) | 37 |
Other | (10) | 5 |
Gross deferred tax assets | 206,328 | 203,553 |
Valuation allowance | (206,339) | (203,550) |
Net deferred tax liabilities | $ 11 | |
Net deferred tax assets | $ 3 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of year | $ 21,998 | $ 20,289 |
Reduction for tax positions related to prior year | (382) | |
Addition for tax positions related to prior year | 516 | |
Additions for tax positions related to current year | 648 | 1,193 |
Balance at end of year | $ 22,264 | $ 21,998 |
Income Taxes - Textual (Details
Income Taxes - Textual (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Increase (decrease) in valuation allowance | $ 2,800,000 | $ 4,800,000 | |
Research and development credits | 47,324,000 | 46,884,000 | |
Effective income tax rate reconciliation, repatriation of foreign earnings, amount | 600,000 | ||
Unrecognized tax benefits | 22,264,000 | $ 21,998,000 | $ 20,289,000 |
Accrued interest or penalties for uncertain income tax | 0 | ||
U.S. Federal | |||
Income Taxes [Line Items] | |||
Operating loss carryforward | 608,900,000 | ||
Research and development credits | 35,000,000 | ||
State | |||
Income Taxes [Line Items] | |||
Operating loss carryforward | 216,400,000 | ||
California State | |||
Income Taxes [Line Items] | |||
Research and development credits | 36,200,000 | ||
Other State | |||
Income Taxes [Line Items] | |||
Research and development credits | $ 3,000,000 |
Net Loss Per Common Share - Bas
Net Loss Per Common Share - Basic and Diluted Shares Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net loss | $ 497 | $ (3,379) | $ (5,045) | $ (9,767) | $ (5,578) | $ 809 | $ (2,793) | $ (11,736) | $ (17,694) | $ (19,298) | $ (83,032) |
Denominator: | |||||||||||
Weighted-average common shares outstanding (in shares) | 54,993 | 52,609 | 50,155 | ||||||||
Net income (loss) per common share, basic and diluted (in dollars per share) | $ 0.01 | $ (0.06) | $ (0.09) | $ (0.18) | $ (0.10) | $ 0.02 | $ (0.05) | $ (0.23) | $ (0.32) | $ (0.37) | $ (1.66) |
Potentially dilutive shares, weighted-average (in shares) | 6,607 | 5,833 | 3,446 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 120,191 | $ 114,485 | $ 100,304 | $ 89,350 | $ 115,516 | $ 114,699 | $ 111,702 | $ 99,403 | $ 424,330 | $ 441,320 | $ 510,367 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 365,586 | 386,341 | 452,956 | ||||||||
Middle East | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 18,664 | 18,814 | 18,267 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 14,531 | 10,542 | 13,105 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 11,480 | 8,858 | 6,575 | ||||||||
Middle East | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 5,809 | 7,075 | 9,853 | ||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 8,260 | $ 9,690 | $ 9,611 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Property and Equipment by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 21,527 | $ 24,945 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 20,510 | 23,249 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 1,017 | $ 1,696 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Capitalized contract cost, gross | $ 0.7 |
Capitalized contract cost, amortization | $ 0.2 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Performance Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 29, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Performance obligations expected to be satisfied | $ 57.7 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, percentage | 40.00% | |
Performance obligations expected to be satisfied, expected timing | 1 year | 1 year |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Contract with customer, asset | $ 5,000 | $ 5,900 |
Contract with customer, asset, prior period, not recognized | 1,000 | |
Contract with customer, asset, expected to be billed remainder of year, percent | 82.00% | |
Deferred revenue, current | $ 17,158 | 15,600 |
Deferred revenue, long-term | 18,340 | 17,496 |
Deferred revenue | 35,498 | 33,096 |
Contract with customer, liability, revenue recognized | 15,000 | |
Products and services | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | 12,480 | 11,600 |
Deferred revenue, long-term | 790 | 440 |
Extended warranty | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | 4,678 | 4,000 |
Deferred revenue, long-term | $ 17,550 | $ 17,056 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Concentration Risk (Details) - CenturyLink - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Percentage of Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk, percentage | 17.00% | 16.00% | |
Percentage of Revenue | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk, percentage | 15.00% | 18.00% | 31.00% |
Product Line Divestiture (Detai
Product Line Divestiture (Details) - Clearfield, Inc. - Outdoor Cabinet Product Line - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Feb. 28, 2018 | Dec. 31, 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 |
Quarterly Financial Data_Unau_3
Quarterly Financial Data—Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 120,191 | $ 114,485 | $ 100,304 | $ 89,350 | $ 115,516 | $ 114,699 | $ 111,702 | $ 99,403 | $ 424,330 | $ 441,320 | $ 510,367 |
Gross profit | 54,712 | 50,202 | 44,668 | 38,343 | 51,624 | 52,833 | 50,866 | 42,059 | 187,925 | 197,382 | 172,890 |
Operating income (loss) | 1,494 | (2,851) | (4,931) | (9,113) | (5,155) | 676 | (2,926) | (11,109) | (15,401) | (18,514) | (81,556) |
Net income (loss) | $ 497 | $ (3,379) | $ (5,045) | $ (9,767) | $ (5,578) | $ 809 | $ (2,793) | $ (11,736) | $ (17,694) | $ (19,298) | $ (83,032) |
Net income (loss) per common share, basic and diluted (in dollars per share) | $ 0.01 | $ (0.06) | $ (0.09) | $ (0.18) | $ (0.10) | $ 0.02 | $ (0.05) | $ (0.23) | $ (0.32) | $ (0.37) | $ (1.66) |
Subsequent Event (Details)
Subsequent Event (Details) - Bank Of America - Subsequent Event | Jan. 20, 2020USD ($) |
Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Revolving credit facility, maximum capacity | $ 35,000,000 |
Covenant compliance, minimum availability | $ 5,000,000 |
Covenant compliance, minimum fixed charge coverage ratio | 1 |
Letter of Credit | |
Subsequent Event [Line Items] | |
Revolving credit facility, maximum capacity | $ 10,000,000 |
London Interbank Offered Rate (LIBOR) | Minimum | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.50% |
London Interbank Offered Rate (LIBOR) | Maximum | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 2.25% |
Prime Rate | Minimum | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 0.50% |
Prime Rate | Maximum | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.25% |
Uncategorized Items - calx-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,773,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,773,000 |