Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | RBCN | |
Entity Registrant Name | RUBICON TECHNOLOGY, INC. | |
Entity Central Index Key | 1410172 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,197,843 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $25,127 | $24,353 |
Restricted cash | 179 | 183 |
Short-term investments | 15,876 | 20,562 |
Accounts receivable, net | 7,553 | 8,323 |
Inventories | 21,798 | 22,739 |
Other inventory supplies | 8,000 | 8,208 |
Prepaid expenses and other current assets | 920 | 1,035 |
Total current assets | 79,453 | 85,403 |
Property and equipment, net | 104,593 | 107,676 |
Other assets | 1,604 | 1,827 |
Total assets | 185,650 | 194,906 |
Liabilities and stockholders' equity | ||
Accounts payable | 2,640 | 3,754 |
Accrued payroll | 249 | 514 |
Accrued and other current liabilities | 1,174 | 925 |
Corporate income and franchise taxes | 80 | 270 |
Accrued real estate taxes | 335 | 280 |
Advance payments | 7 | 10 |
Total current liabilities | 4,485 | 5,753 |
Deferred tax liability | 622 | 593 |
Total liabilities | 5,107 | 6,346 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.001 par value, 5,000,000 undesignated shares authorized, no shares issued or outstanding | ||
Common stock, $0.001 par value, 40,000,000 shares authorized and 27,972,687 and 27,913,788 shares issued; 26,197,843 and 26,138,944 shares outstanding | 28 | 28 |
Additional paid-in capital | 372,644 | 372,319 |
Treasury stock, at cost, 1,774,844 shares | -12,148 | -12,148 |
Accumulated other comprehensive loss | -37 | -43 |
Accumulated deficit | -179,944 | -171,596 |
Total stockholders' equity | 180,543 | 188,560 |
Total liabilities and stockholders' equity | $185,650 | $194,906 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 27,972,687 | 27,913,788 |
Common stock, shares outstanding | 26,197,843 | 26,138,944 |
Treasury stock, shares | 1,774,844 | 1,774,844 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $8,910 | $14,268 |
Cost of goods sold | 14,019 | 21,762 |
Gross loss | -5,109 | -7,494 |
Operating expenses: | ||
General and administrative | 2,068 | 2,388 |
Sales and marketing | 338 | 467 |
Research and development | 433 | 576 |
Loss from operations | -7,948 | -10,925 |
Other income: | ||
Interest income | 16 | 21 |
Interest expense | -23 | -23 |
Realized (loss) gain on foreign currency translation | -357 | 39 |
Total other (expense) income | -364 | 37 |
Loss before income taxes | -8,312 | -10,888 |
Income tax expense | 36 | 6 |
Net loss | ($8,348) | ($10,894) |
Net loss per common share | ||
Basic | ($0.32) | ($0.43) |
Diluted | ($0.32) | ($0.43) |
Weighted average common shares outstanding used in computing net loss per common share basic and diluted | 26,129,276 | 25,317,147 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net loss | ($8,348) | ($10,894) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on investments, net of tax | 6 | -156 |
Unrealized loss on currency translation | 1 | |
Other comprehensive income (loss) | 6 | -155 |
Comprehensive loss | ($8,342) | ($11,049) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net loss | ($8,348) | ($10,894) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 3,317 | 3,507 |
Stock-based compensation | 334 | 448 |
Deferred taxes | 29 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 770 | -4,597 |
Inventories | 647 | 5,781 |
Other inventory supplies | 100 | -140 |
Prepaid expenses and other assets | 332 | -354 |
Accounts payable | -1,050 | 1,192 |
Accrued payroll | -258 | -56 |
Corporate income and franchise taxes | -189 | -92 |
Advanced payments | -4 | 347 |
Accrued and other current liabilities | 313 | 385 |
Net cash used in operating activities | -4,007 | -4,473 |
Cash flows from investing activities | ||
Purchases of property and equipment | -234 | -1,924 |
Purchases of investments | -307 | -26,675 |
Proceeds from sale of investments | 5,000 | 4,500 |
Net cash provided by (used in) investing activities | 4,459 | -24,099 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock, net of issuance costs | 34,961 | |
Proceeds from exercise of options | 256 | |
Taxes paid related to net share settlement of equity awards | -8 | |
Restricted cash | 4 | 4 |
Net cash (used in) provided by financing activities | -4 | 35,221 |
Net effect of currency translation | 326 | -39 |
Net increase in cash and cash equivalents | 774 | 6,610 |
Cash and cash equivalents, beginning of period | 24,353 | 21,071 |
Cash and cash equivalents, end of period | $25,127 | $27,681 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION |
Interim financial data | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements and should be read in conjunction with Rubicon Technology, Inc.’s (the “Company”) annual report filed on Form 10-K for the fiscal year ended December 31, 2014. In the opinion of management, all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair presentation of the results of operations have been included. Consolidated operating results for the three month periods ended March 31, 2015 are not necessarily indicative of results that may be expected for the year ending December 31, 2015. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Principles of consolidation | |||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Rubicon Worldwide LLC and Rubicon Sapphire Technology (Malaysia) SDN BHD. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||
Foreign currency translation and transactions | |||||||||
Rubicon Worldwide LLC’s assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates and capital accounts at historical exchange rates. The results of operations are translated into U.S. dollars at the average exchange rates during the respective period. Translation adjustments resulting from fluctuations in exchange rates for Rubicon Worldwide LLC are recorded as a separate component of accumulated other comprehensive loss within stockholders’ equity. | |||||||||
The Company has determined that the functional currency of Rubicon Sapphire Technology (Malaysia) SDN BHD is the U.S. dollar. Rubicon Sapphire Technology (Malaysia) SDN BHD’s assets and liabilities are translated into U.S. dollars using the remeasurement method. Non-monetary assets are translated at historical exchange rates and monetary assets are translated at exchange rates existing at the respective balance sheet dates. Translation adjustments for Rubicon Sapphire Technology (Malaysia) SDN BHD are included in determining net income (loss) for the period. The results of operations are translated into U.S. dollars at the average exchange rates during the respective period. The Company records these gains and losses in other income (expense). | |||||||||
Foreign currency transaction gains and losses are generated from the effects of exchange rate changes on transactions denominated in a currency other than the functional currency of the Company, which is the U.S. dollar. Gains and losses on foreign currency transactions are generally required to be recognized in the determination of net loss for the period. The Company records these gains and losses in other income (expense). | |||||||||
Investments | |||||||||
The Company invests available cash primarily in investment grade commercial paper, corporate notes, FDIC guaranteed certificates of deposits, common stock, and government securities. Investments classified as available-for-sale securities are carried at fair market value with unrealized gains and losses recorded in accumulated other comprehensive loss. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in other income (expense), in the Consolidated Statement of Operations. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations, are classified as short-term. | |||||||||
The Company reviews its available-for-sale securities investments at the end of each quarter for other-than-temporary declines in fair value based on the specific identification method. The Company considers various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, changes in underlying credit ratings, forecasted recovery, its ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that an other-than-temporary impairment has resulted, the difference between the fair value and carrying value is written off and recorded as a charge on the Consolidated Statement of Operations. As of March 31, 2015, no impairment was recorded. | |||||||||
Accounts receivable | |||||||||
The majority of the Company’s accounts receivable is due from manufacturers serving the LED and optical systems and specialty electronics devices industries. Credit is extended based on an evaluation of the customer’s financial condition. Accounts receivable are due based on contract terms and at stated amounts due from customers, net of an allowance for doubtful accounts. | |||||||||
Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time past due, the customer’s current ability to pay and the condition of the general economy and industry as a whole. The Company writes off accounts receivable when they are deemed uncollectible, and payments subsequently received on such receivables are recorded as a reduction to bad debt expense. The following table shows the activity of the allowance for doubtful accounts: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 140 | $ | 50 | |||||
Charges to costs and expenses | (63 | ) | 105 | ||||||
Accounts charged off, less recoveries | — | (15 | ) | ||||||
Ending balance | $ | 77 | $ | 140 | |||||
Inventories | |||||||||
Inventories are valued at the lower of cost or market. Raw materials cost is determined using the first-in, first-out method, and work-in-process and finished goods costs are determined on a weighted-average cost basis which includes materials, labor and overhead. The Company reduces the carrying value of its inventories for differences between the cost and the estimated net realizable value, taking into account usage, expected demand, technological obsolescence and other information. At times in 2015 and 2014, the Company accepted sales orders for core and wafer products at prices lower than cost. Based on these sales prices, the Company recorded for the three months ended March 31, 2015 and 2014, a lower of cost or market adjustment which reduced inventory and increased cost of goods sold by $252,000 and $1.1 million, respectively. Inventories are composed of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 12,913 | $ | 14,503 | |||||
Work in progress | 7,468 | 6,357 | |||||||
Finished goods | 1,417 | 1,879 | |||||||
$ | 21,798 | $ | 22,739 | ||||||
The Company establishes inventory reserves when conditions exist that suggest inventory may be in excess of anticipated demand or is obsolete based on customer specifications. The Company evaluates the ability to realize the value of its inventory based on a combination of factors, including forecasted sales, estimated current and future market value and changes in customers’ product specifications. The Company’s method of estimating excess and obsolete inventory has remained consistent for all periods presented. | |||||||||
Property and equipment | |||||||||
Property and equipment consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Land and land improvements | $ | 4,133 | $ | 4,133 | |||||
Buildings | 32,487 | 32,482 | |||||||
Machinery, equipment and tooling | 127,404 | 127,158 | |||||||
Leasehold improvements | 7,640 | 7,640 | |||||||
Furniture and fixtures | 961 | 961 | |||||||
Information systems | 1,140 | 1,140 | |||||||
Construction in progress | 3,650 | 3,734 | |||||||
Total cost | 177,415 | 177,248 | |||||||
Accumulated depreciation and amortization | (72,822 | ) | (69,572 | ) | |||||
Property and equipment, net | $ | 104,593 | $ | 107,676 | |||||
Impairment of long-lived assets | |||||||||
When circumstances, such as adverse market conditions, indicate that the carrying value of a long-lived asset may be impaired, the Company performs an analysis to review the recoverability of the asset’s carrying value. The Company makes estimates of the undiscounted cash flows (excluding interest charges) from the expected future operations of the asset. These estimates consider factors such as expected future operating income, operating trends and prospects, as well as the effects of demand, competition and other factors. If the analysis indicates that the carrying value is not recoverable from future cash flows, an impairment loss is recognized to the extent that the carrying value exceeds the estimated fair value. Any impairment losses are recorded as operating expenses, which reduce net income. In response to the Company’s current period operating losses combined with its history of continuing operating losses, the Company evaluated the recoverability of certain property and equipment. Based upon the Company’s assessment using its most recent projections, no impairment to these assets was indicated as of March 31, 2015, as the recoverable amount of undiscounted cash flows exceeded the carrying amount of these assets. To the extent these projections are not achieved, there may be a negative effect on the valuation and carrying value of these assets. | |||||||||
There were no impairment losses on long lived assets for the three months ended March 31, 2015. | |||||||||
Revenue recognition | |||||||||
Revenues recognized include product sales and billings for costs and fees for government contracts. | |||||||||
Product Sales | |||||||||
The Company recognizes revenue from product sales when earned. Revenue is recognized when, and if, evidence of an arrangement is obtained and the other criteria to support revenue recognition are met, including: | |||||||||
• | Persuasive evidence of an arrangement exists. The Company requires evidence of a purchase order with the customer specifying the terms and specifications of the product to be delivered, typically in the form of a signed quotation or purchase order from the customer. | ||||||||
• | Title has passed and the product has been delivered. Title passage and product delivery generally occur when the product is delivered to a common carrier. | ||||||||
• | The price is fixed or determinable. All terms are fixed in the signed quotation or purchase order received from the customer. The purchase orders do not contain rights of cancellation, return, exchange or refund. | ||||||||
• | Collection of the resulting receivable is reasonably assured. The Company’s standard arrangement with customers includes payment terms. Customers are subject to a credit review process that evaluates each customer’s financial position and its ability to pay. Collectability is determined by considering the length of time the customer has been in business and history of collections. If it is determined that collection is not probable, no product is shipped and no revenue is recognized unless cash is received in advance. | ||||||||
Government Contracts | |||||||||
The Company recognizes research and development revenue in the period during which the related costs are incurred over the contractually defined period. In July 2012, the Company signed a contract with the Air Force Research Laboratory to produce large-area sapphire windows on a cost plus fixed fee basis. The Company records research and development revenue on a gross basis as costs are incurred plus a portion of the fixed fee. For the three months ended March 31, 2015 and 2014, $141,000 and $125,000 of revenue was recognized, respectively. The contract is for three years and the total value of the contract is $4.7 million, of which $3.4 million has been recognized through March 31, 2015. | |||||||||
The Company does not provide maintenance or other services and it does not have sales that involve multiple elements or deliverables. | |||||||||
Net income per common share | |||||||||
Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted-average number of diluted common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted-average shares any outstanding stock options and warrants based on the treasury stock method. | |||||||||
Diluted net loss per share is the same as basic net loss per share for the three months ended March 31, 2015 and 2014 because the effects of potentially dilutive securities are anti-dilutive. | |||||||||
At March 31, 2015 and 2014, the Company had the following anti-dilutive securities outstanding which were excluded from the calculation of diluted net loss per share: | |||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Warrants | 38,219 | 175,832 | |||||||
Stock options | 21,952 | 357,511 | |||||||
60,171 | 533,343 | ||||||||
Other comprehensive loss | |||||||||
Comprehensive loss is defined as the change in equity of a business enterprise from transactions and other events from non-owner sources. Comprehensive loss includes net earnings (loss) and other non-owner changes in equity that bypass the statement of operations and are reported in a separate component of equity. For the three months ended March 31, 2015 and 2014, other comprehensive loss includes the unrealized loss on investments and foreign currency translation adjustments. | |||||||||
The following table summarizes the components of comprehensive loss: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Reclassification of unrealized gain included in net loss | $ | — | $ | 388 | |||||
Unrealized loss on investments, net of taxes | (22 | ) | (415 | ) | |||||
Unrealized loss on currency translation | (15 | ) | (16 | ) | |||||
Ending Balance | $ | (37 | ) | $ | (43 | ) | |||
Recent accounting pronouncement | |||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers, which supersedes most of the current revenue recognition requirements. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2016 (early adoption is not permitted). The guidance permits the use of either a retrospective or cumulative effect transition method. The adoption of ASU 2014-09 is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||
In June 2014, the FASB issued Accounting Standards Update No. 2014-12 (“ASU 2014-12”), Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period related to stock compensation. The new standard requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. The Company is evaluating the impact, if any, of adopting ASU 2014-12 on its financial statements. | |||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standard requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management must evaluate whether it is probable that known conditions or events, considered in the aggregate, would raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events are identified, the standard requires management’s mitigation plans to alleviate the doubt or a statement of the substantial doubt about the entity’s ability to continue as a going concern to be disclosed in the financial statements. The standard is effective for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is evaluating the impact, if any, of adopting ASU 2014-15 on its financial statements. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information | 3. SEGMENT INFORMATION | ||||||||
The Company evaluates operations as one reportable segment, as it only reports profit and loss information on an aggregate basis to its chief operating decision maker. | |||||||||
Revenue is attributed by geographic region based on ship-to location of the Company’s customers. The following table summarizes revenue by geographic region: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
China | $ | 3,351 | $ | 6,450 | |||||
Taiwan | 1,701 | 3,764 | |||||||
United States | 1,523 | 1,370 | |||||||
Korea | 725 | 1,896 | |||||||
Other | 1,610 | 788 | |||||||
Revenue | $ | 8,910 | $ | 14,268 | |||||
The following table summarizes revenue by product type: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Core | $ | 5,109 | $ | 11,355 | |||||
Wafer | 1,891 | 1,095 | |||||||
Optical | 1,769 | 1,638 | |||||||
Research & Development | 141 | 125 | |||||||
Other | — | 55 | |||||||
Revenue | $ | 8,910 | $ | 14,268 | |||||
The following table summarizes assets by geographic region: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
United States | $ | 146,828 | $ | 156,105 | |||||
Malaysia | 38,796 | 38,765 | |||||||
Other | 26 | 36 | |||||||
Total Assets | $ | 185,650 | $ | 194,906 | |||||
Investments
Investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Investments | 4. INVESTMENTS | ||||||||||||||||
The Company invests available cash primarily in investment grade commercial paper, corporate notes, FDIC guaranteed certificates of deposits, common stock, and government securities. The Company’s short-term investments balance of $15.9 million as of March 31, 2015, is comprised of corporate notes and bonds of $12.8 million and FDIC guaranteed certificates of deposit of $3.1. The Company’s investments are classified as available-for-sale securities and are carried at fair market value with unrealized gains and losses recorded in accumulated other comprehensive loss. | |||||||||||||||||
The following table presents the amortized cost and gross unrealized gains and losses on all securities at March 31, 2015: | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in thousands) | |||||||||||||||||
Short-term Investments: | |||||||||||||||||
FDIC Guaranteed certificates of deposit | $ | 3,080 | $ | — | $ | 1 | $ | 3,079 | |||||||||
Corporate notes/bonds | 12,806 | — | 9 | 12,797 | |||||||||||||
Total short-term investments | $ | 15,886 | $ | — | $ | 10 | $ | 15,876 | |||||||||
The following table presents the amortized cost and gross unrealized gains and losses on all securities at December 31, 2014: | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in thousands) | |||||||||||||||||
Short-term Investments: | |||||||||||||||||
FDIC Guaranteed certificates of deposit | $ | 2,120 | $ | — | $ | 2 | $ | 2,118 | |||||||||
Corporate Notes/Bonds | 18,458 | — | 14 | 18,444 | |||||||||||||
Total short-term investments | $ | 20,578 | $ | — | $ | 16 | $ | 20,562 | |||||||||
The Company values its investments at fair value, defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard below describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: | |||||||||||||||||
• | Level 1 – Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
The Company’s fixed income available-for-sale securities consist of high quality, investment grade commercial paper, corporate notes, FDIC guaranteed certificates of deposits, common stock, and government securities. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. The valuation techniques used to measure the fair value of the Company’s financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques. | |||||||||||||||||
The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2015: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash Equivalents: | |||||||||||||||||
Money market funds | $ | 21,672 | $ | — | $ | — | $ | 21,672 | |||||||||
Investments: | |||||||||||||||||
Available-for-sales securities—current | |||||||||||||||||
FDIC Guaranteed certificates of deposit | — | 3,079 | — | 3,079 | |||||||||||||
Corporate notes/bonds | — | 12,797 | — | 12,797 | |||||||||||||
Total | $ | 21,672 | $ | 15,875 | $ | — | $ | 37,548 | |||||||||
The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2014: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash Equivalents: | |||||||||||||||||
Money market funds | $ | 21,963 | $ | — | $ | — | $ | 21,963 | |||||||||
Investments: | |||||||||||||||||
Available-for-sales securities—current: | |||||||||||||||||
FDIC Guaranteed certificates of deposit | — | 2,118 | — | 2,118 | |||||||||||||
Corporate notes/bonds | — | 18,444 | — | 18,444 | |||||||||||||
Total | $ | 21,963 | $ | 20,562 | $ | — | $ | 42,525 | |||||||||
In addition to the debt securities noted above, the Company had approximately $3.5 million and $2.4 million of time deposits included in cash and cash equivalents as of March 31, 2015 and December 31, 2014, respectively. |
Significant_Customers
Significant Customers | 3 Months Ended |
Mar. 31, 2015 | |
Text Block [Abstract] | |
Significant Customers | 5. SIGNIFICANT CUSTOMERS |
For the three months ended March 31, 2015, the Company had one customer individually that accounted for approximately 29% of revenue. For the three months ended March 31, 2014, the Company had four customers individually that accounted for approximately 21%, 14%, 11% and 11% of revenue, respectively. | |
Customers individually representing more than 10% of trade receivables accounted for approximately 57% and 50% of accounts receivable as of March 31, 2015 and December 31, 2014, respectively. The Company grants credit to customers based on an evaluation of their financial condition. Losses from credit sales are provided for in the financial statements. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 6. STOCKHOLDERS’ EQUITY |
Common Stock | |
As of March 31, 2015, the Company had reserved 2,418,119 shares of common stock for issuance upon the exercise of outstanding common stock options and vesting of restricted stock units. Also, 1,648,487 shares of the Company’s common stock were reserved for future grants of stock options (or other similar equity instruments) under the Company’s 2007 Stock Incentive Plan (the “2007 Plan”) as of March 31, 2015. In addition, 267,826 shares of the Company’s common stock were reserved for future exercise of outstanding warrants as of March 31, 2015. | |
On January 13, 2014, the Company completed a public offering of common stock in which a total of 3,047,500 shares were sold including 397,500 shares pursuant to the full exercise of the underwriter’s over-allotment option, at a price of $10.65 per share. The Company raised a total of $32.5 million in gross proceeds from the offering, or approximately $30.3 million in net proceeds after deducting the underwriting discount and expenses of $2.3 million. | |
On March 20, 2014, certain selling stockholders of the Company completed a public offering of 2,875,000 shares of common stock and the Company sold 375,000 shares pursuant to the full exercise of the underwriter’s over-allotment option each at a price of $13.00 per share. The Company raised a total of $4.9 million in gross proceeds from the offering, or approximately $4.4 million in net proceeds after deducting the underwriting discount and expenses of $319,000 and estimated costs of $148,000. | |
Warrants | |
For the three months ended March 31, 2015, no common stock warrants were exercised. At March 31, 2015 and December 31, 2014, there were 267,826 common stock warrants outstanding. |
Stock_Incentive_Plans
Stock Incentive Plans | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Stock Incentive Plans | 7. STOCK INCENTIVE PLANS | ||||||||||||||||||||
The Company sponsored a stock option plan, the 2001 Plan, which allowed for the granting of incentive and nonqualified stock options for the purchase of common stock. The maximum number of shares that may be awarded or sold under the 2001 Plan was 1,449,667 shares. Each option entitles the holder to purchase one share of common stock at the specified option exercise price. The exercise price of each incentive stock option granted must not be less than the fair market value on the grant date. At the discretion of management and with the approval of the Board of Directors, the Company granted options under the 2001 Plan. Management and the Board of Directors determined vesting periods and expiration dates at the time of the grant. On August 2, 2011, the plan expired. | |||||||||||||||||||||
In August 2007, the Company adopted the 2007 Plan, which allows for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and bonus shares. The Board of Directors has appointed a committee to administer the plan. The plan committee determines the type of award to be granted, the fair market value, the number of shares covered by the award, and the time when the award vests and may be exercised. | |||||||||||||||||||||
The Company uses the Black-Scholes option pricing model to value stock options issued after January 1, 2006. For options granted in 2015, the Company uses five year historical data to determine its volatility assumptions and expected term. The assumed risk-free rates were based on U.S. Treasury rates in effect at the time of grant with a term consistent with the expected option lives. The forfeiture rate is based on past history of forfeited options. The expense is being allocated using the straight-line method. For the three months ended March 31, 2015 and 2014, the Company recorded $200,000 and $289,000, respectively, of stock option compensation expense. As of March 31, 2015, the Company had $1.7 million of total unrecognized compensation cost related to non-vested stock option awards granted under the Company’s stock-based plans that it expects to recognize over a weighted-average period of 2.69 years. The Company accounts for options issued prior to January 1, 2006 under the intrinsic value method. | |||||||||||||||||||||
The following table summarizes the activity of the stock incentive and equity plans as of March 31, 2015 and changes during the three months then ended: | |||||||||||||||||||||
Shares | Number of | Weighted- | Number of | Number of | |||||||||||||||||
available | options | average option | restricted | restricted | |||||||||||||||||
for grant | outstanding | exercise price | stock and | stock units | |||||||||||||||||
board | outstanding | ||||||||||||||||||||
shares | |||||||||||||||||||||
issued | |||||||||||||||||||||
At January 1, 2015 | 1,772,529 | 2,238,286 | $ | 10.31 | 140,653 | 134,731 | |||||||||||||||
Granted | (165,239 | ) | 60,000 | 3.97 | 60,802 | 44,437 | |||||||||||||||
Exercised | — | — | — | — | — | ||||||||||||||||
Cancelled/forfeited | 41,197 | (46,966 | ) | 13.72 | — | (12,369 | ) | ||||||||||||||
At March 31, 2015 | 1,648,487 | 2,251,320 | $ | 10.09 | 201,455 | 166,799 | |||||||||||||||
The Company’s aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s common stock. Based on the fair market value of the common stock at March 31, 2015 and 2014, there was no intrinsic value for options outstanding. The weighted average fair value per share of options granted for the three months ended March 31, 2015 was $3.97 and the fair value of each option grant was estimated at the date of grant using the Black-Scholes option pricing model using an expected term of 5.5 years, risk-free interest rate of 1.41%, expected volatility of 65% and no dividend yield. The Company used an expected forfeiture rate of 18.56%. | |||||||||||||||||||||
A summary of the Company’s non-vested options during the three month period ended March 31, 2015 is presented below: | |||||||||||||||||||||
Options | Weighted- | ||||||||||||||||||||
average | |||||||||||||||||||||
exercise | |||||||||||||||||||||
price | |||||||||||||||||||||
Non-vested at January 1, 2015 | 628,733 | $ | 5.93 | ||||||||||||||||||
Granted | 60,000 | 3.97 | |||||||||||||||||||
Vested | (31,375 | ) | 6.81 | ||||||||||||||||||
Forfeited | (27,699 | ) | 11.4 | ||||||||||||||||||
Non-vested at March 31, 2015 | 629,659 | $ | 5.46 | ||||||||||||||||||
For the three months ended March 31, 2015 and 2014, the Company recorded $61,000 and $25,000, respectively, of restricted stock unit (“RSU”) expense. As of March 31, 2015, there was $610,000 of unrecognized compensation cost related to the non-vested RSUs. This cost is expected to be recognized over a weighted-average period of 2.6 years. | |||||||||||||||||||||
A summary of the Company’s restricted stock units is as follows: | |||||||||||||||||||||
RSUs | Weighted average price at | Aggregate intrinsic | |||||||||||||||||||
outstanding | time of grant | value | |||||||||||||||||||
Non-vested restricted stock units as of January 1, 2015 | 134,731 | $ | 5.41 | ||||||||||||||||||
Granted | 44,437 | 4.36 | |||||||||||||||||||
Cancelled | (12,369 | ) | 5.59 | ||||||||||||||||||
Non-vested at March 31, 2015 | 166,799 | $ | 5.12 | $ | 657,000 | ||||||||||||||||
For the three months ended March 31, 2015 and 2014, the Company recorded $73,000 and $134,000, respectively, of stock compensation expense related to restricted stock. | |||||||||||||||||||||
An analysis of restricted stock issued is as follows: | |||||||||||||||||||||
Non-vested restricted stock as of January 1, 2015 | 12,207 | ||||||||||||||||||||
Granted | 60,802 | ||||||||||||||||||||
Vested | (6,980 | ) | |||||||||||||||||||
Non-vested restricted stock as of March 31, 2015 | 66,029 | ||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. COMMITMENTS AND CONTINGENCIES |
Purchase Commitments | |
The Company has entered into agreements for electricity and to purchase equipment and components to construct furnaces. These agreements will result in the Company purchasing electricity, equipment or components for a total cost of approximately $3.6 million with deliveries occurring through 2016. | |
Litigation | |
From time to time, the Company experiences routine litigation in the normal course of its business. The management of the Company does not believe any pending litigation will have a material adverse effect on the financial condition or results of operations of the Company. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. INCOME TAXES |
The Company is subject to income taxes in the U.S. and Malaysia. On a quarterly basis, the Company assesses the recoverability of deferred tax assets and the need for a valuation allowance. Such evaluations involve the application of significant judgment and multiple factors, both positive and negative, are considered. For the period ended March 31, 2015, a valuation allowance has been included in the 2015 forecasted effective tax rate. The Company is in a cumulative loss position for the past three years, which is considered significant negative evidence that is difficult to overcome on a “more likely than not” standard through objectively verifiable data. Under the accounting standards objective verifiable evidence is given greater weight than subjective evidence such as the Company’s projections for future growth. Based on an evaluation in accordance with the accounting standards, as of December 31, 2014, a valuation allowance has been recorded against the net U.S. deferred tax assets in order to measure only the portion of the deferred tax assets that are more likely than not to be realized based on the weight of all the available evidence. At March 31, 2015 the Company continues to be in a three year cumulative loss position therefore until an appropriate level of profitability is attained, the Company expects to maintain a full valuation allowance on its U.S. net deferred tax assets. Any U.S. tax benefits or tax expense recorded on the Company’s Consolidated Statement of Operations will be offset with a corresponding valuation allowance until such time that the Company changes its determination related to the realization of deferred tax assets. In the event that the Company changes its determination as to the amount of deferred tax assets that can be realized, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. | |
The tax provision for the three months ended March 31, 2015 is based on an estimated combined statutory effective tax rate. The Company recorded for the three months ended March 31, 2015 a tax expense of $36,000 for an effective tax rate of 0.44%. For the three months ended March 31, 2015 the difference between the Company’s effective tax rate and the U.S. federal 35% statutory rate and state 6.2% (net of federal benefit) statutory rate was primarily related to a U.S. valuation allowance and profits recorded in the Malaysia operation for which the Company has a tax holiday. |
Credit_Facility
Credit Facility | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facility | 10. CREDIT FACILITY |
On January 2, 2013, the Company entered into a three-year term agreement with a bank to provide the Company with a senior secured credit facility of up to $25.0 million. The agreement provides for the Company to borrow up to 80% of the value of eligible accounts receivable and up to 35% of the value of domestically held raw material and finished goods inventory. Advances against inventory are limited to the lesser of 40% of the aggregate outstanding principal on the revolving line of credit and $10.0 million. The Company has the option to borrow at an interest rate of LIBOR plus 2.75% or the Wall Street Journal prime rate plus 0.50%. If the Company maintains liquidity of $20.0 million or greater with the lending institution, then the borrowing interest rate options are LIBOR plus 2.25% or the Wall Street Journal prime rate. There is an unused revolving line facility fee of 0.375% per annum. The facility is secured by a first priority interest in substantially all of the Company’s personal property, excluding intellectual property. The Company is required to maintain an adjusted quick ratio of 1.40 to 1.00, maintain operating and other deposit accounts with the bank or bank’s affiliates of 25% of the Company’s total worldwide cash, securities and investments, and the Company can pay dividends or repurchase capital stock only with the bank’s consent during the three year term. For the three months ended March 31, 2015, the Company did not draw on this facility. For each of the three months ended March 31, 2015 and 2014, the Company recorded $23,000 of interest expense charged on the unused portion of the facility. |
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | 11. SUBSEQUENT EVENT |
On April 30, 2015, Firerock Global Opportunity Fund LP filed a complaint in the Northern District of Illinois asserting federal securities claims against the Company, certain officers, its directors and the underwriters in the Company’s March 2014 stock offering (the “Complaint”). The Complaint seeks as a remedy either money damages or rescission of the March offering, plus attorneys’ fees. The Company intends to vigorously defend this lawsuit. Due to the preliminary nature of the lawsuit, at this time, we cannot predict an outcome, nor is it reasonably possible to estimate the amount or range of loss, if any, that would be associated with an adverse decision. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Principles of consolidation | Principles of consolidation | ||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Rubicon Worldwide LLC and Rubicon Sapphire Technology (Malaysia) SDN BHD. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||
Foreign currency translation and transactions | Foreign currency translation and transactions | ||||||||
Rubicon Worldwide LLC’s assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates and capital accounts at historical exchange rates. The results of operations are translated into U.S. dollars at the average exchange rates during the respective period. Translation adjustments resulting from fluctuations in exchange rates for Rubicon Worldwide LLC are recorded as a separate component of accumulated other comprehensive loss within stockholders’ equity. | |||||||||
The Company has determined that the functional currency of Rubicon Sapphire Technology (Malaysia) SDN BHD is the U.S. dollar. Rubicon Sapphire Technology (Malaysia) SDN BHD’s assets and liabilities are translated into U.S. dollars using the remeasurement method. Non-monetary assets are translated at historical exchange rates and monetary assets are translated at exchange rates existing at the respective balance sheet dates. Translation adjustments for Rubicon Sapphire Technology (Malaysia) SDN BHD are included in determining net income (loss) for the period. The results of operations are translated into U.S. dollars at the average exchange rates during the respective period. The Company records these gains and losses in other income (expense). | |||||||||
Foreign currency transaction gains and losses are generated from the effects of exchange rate changes on transactions denominated in a currency other than the functional currency of the Company, which is the U.S. dollar. Gains and losses on foreign currency transactions are generally required to be recognized in the determination of net loss for the period. The Company records these gains and losses in other income (expense). | |||||||||
Investments | Investments | ||||||||
The Company invests available cash primarily in investment grade commercial paper, corporate notes, FDIC guaranteed certificates of deposits, common stock, and government securities. Investments classified as available-for-sale securities are carried at fair market value with unrealized gains and losses recorded in accumulated other comprehensive loss. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in other income (expense), in the Consolidated Statement of Operations. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations, are classified as short-term. | |||||||||
The Company reviews its available-for-sale securities investments at the end of each quarter for other-than-temporary declines in fair value based on the specific identification method. The Company considers various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, changes in underlying credit ratings, forecasted recovery, its ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that an other-than-temporary impairment has resulted, the difference between the fair value and carrying value is written off and recorded as a charge on the Consolidated Statement of Operations. As of March 31, 2015, no impairment was recorded. | |||||||||
Accounts receivable | Accounts receivable | ||||||||
The majority of the Company’s accounts receivable is due from manufacturers serving the LED and optical systems and specialty electronics devices industries. Credit is extended based on an evaluation of the customer’s financial condition. Accounts receivable are due based on contract terms and at stated amounts due from customers, net of an allowance for doubtful accounts. | |||||||||
Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time past due, the customer’s current ability to pay and the condition of the general economy and industry as a whole. The Company writes off accounts receivable when they are deemed uncollectible, and payments subsequently received on such receivables are recorded as a reduction to bad debt expense. The following table shows the activity of the allowance for doubtful accounts: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 140 | $ | 50 | |||||
Charges to costs and expenses | (63 | ) | 105 | ||||||
Accounts charged off, less recoveries | — | (15 | ) | ||||||
Ending balance | $ | 77 | $ | 140 | |||||
Inventories | Inventories | ||||||||
Inventories are valued at the lower of cost or market. Raw materials cost is determined using the first-in, first-out method, and work-in-process and finished goods costs are determined on a weighted-average cost basis which includes materials, labor and overhead. The Company reduces the carrying value of its inventories for differences between the cost and the estimated net realizable value, taking into account usage, expected demand, technological obsolescence and other information. At times in 2015 and 2014, the Company accepted sales orders for core and wafer products at prices lower than cost. Based on these sales prices, the Company recorded for the three months ended March 31, 2015 and 2014, a lower of cost or market adjustment which reduced inventory and increased cost of goods sold by $252,000 and $1.1 million, respectively. Inventories are composed of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 12,913 | $ | 14,503 | |||||
Work in progress | 7,468 | 6,357 | |||||||
Finished goods | 1,417 | 1,879 | |||||||
$ | 21,798 | $ | 22,739 | ||||||
The Company establishes inventory reserves when conditions exist that suggest inventory may be in excess of anticipated demand or is obsolete based on customer specifications. The Company evaluates the ability to realize the value of its inventory based on a combination of factors, including forecasted sales, estimated current and future market value and changes in customers’ product specifications. The Company’s method of estimating excess and obsolete inventory has remained consistent for all periods presented. | |||||||||
Property and equipment | Property and equipment | ||||||||
Property and equipment consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Land and land improvements | $ | 4,133 | $ | 4,133 | |||||
Buildings | 32,487 | 32,482 | |||||||
Machinery, equipment and tooling | 127,404 | 127,158 | |||||||
Leasehold improvements | 7,640 | 7,640 | |||||||
Furniture and fixtures | 961 | 961 | |||||||
Information systems | 1,140 | 1,140 | |||||||
Construction in progress | 3,650 | 3,734 | |||||||
Total cost | 177,415 | 177,248 | |||||||
Accumulated depreciation and amortization | (72,822 | ) | (69,572 | ) | |||||
Property and equipment, net | $ | 104,593 | $ | 107,676 | |||||
Impairment of long-lived assets | Impairment of long-lived assets | ||||||||
When circumstances, such as adverse market conditions, indicate that the carrying value of a long-lived asset may be impaired, the Company performs an analysis to review the recoverability of the asset’s carrying value. The Company makes estimates of the undiscounted cash flows (excluding interest charges) from the expected future operations of the asset. These estimates consider factors such as expected future operating income, operating trends and prospects, as well as the effects of demand, competition and other factors. If the analysis indicates that the carrying value is not recoverable from future cash flows, an impairment loss is recognized to the extent that the carrying value exceeds the estimated fair value. Any impairment losses are recorded as operating expenses, which reduce net income. In response to the Company’s current period operating losses combined with its history of continuing operating losses, the Company evaluated the recoverability of certain property and equipment. Based upon the Company’s assessment using its most recent projections, no impairment to these assets was indicated as of March 31, 2015, as the recoverable amount of undiscounted cash flows exceeded the carrying amount of these assets. To the extent these projections are not achieved, there may be a negative effect on the valuation and carrying value of these assets. | |||||||||
There were no impairment losses on long lived assets for the three months ended March 31, 2015. | |||||||||
Revenue recognition | Revenue recognition | ||||||||
Revenues recognized include product sales and billings for costs and fees for government contracts. | |||||||||
Product Sales | |||||||||
The Company recognizes revenue from product sales when earned. Revenue is recognized when, and if, evidence of an arrangement is obtained and the other criteria to support revenue recognition are met, including: | |||||||||
• | Persuasive evidence of an arrangement exists. The Company requires evidence of a purchase order with the customer specifying the terms and specifications of the product to be delivered, typically in the form of a signed quotation or purchase order from the customer. | ||||||||
• | Title has passed and the product has been delivered. Title passage and product delivery generally occur when the product is delivered to a common carrier. | ||||||||
• | The price is fixed or determinable. All terms are fixed in the signed quotation or purchase order received from the customer. The purchase orders do not contain rights of cancellation, return, exchange or refund. | ||||||||
• | Collection of the resulting receivable is reasonably assured. The Company’s standard arrangement with customers includes payment terms. Customers are subject to a credit review process that evaluates each customer’s financial position and its ability to pay. Collectability is determined by considering the length of time the customer has been in business and history of collections. If it is determined that collection is not probable, no product is shipped and no revenue is recognized unless cash is received in advance. | ||||||||
Government Contracts | |||||||||
The Company recognizes research and development revenue in the period during which the related costs are incurred over the contractually defined period. In July 2012, the Company signed a contract with the Air Force Research Laboratory to produce large-area sapphire windows on a cost plus fixed fee basis. The Company records research and development revenue on a gross basis as costs are incurred plus a portion of the fixed fee. For the three months ended March 31, 2015 and 2014, $141,000 and $125,000 of revenue was recognized, respectively. The contract is for three years and the total value of the contract is $4.7 million, of which $3.4 million has been recognized through March 31, 2015. | |||||||||
The Company does not provide maintenance or other services and it does not have sales that involve multiple elements or deliverables. | |||||||||
Net income per common share | Net income per common share | ||||||||
Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted-average number of diluted common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted-average shares any outstanding stock options and warrants based on the treasury stock method. | |||||||||
Diluted net loss per share is the same as basic net loss per share for the three months ended March 31, 2015 and 2014 because the effects of potentially dilutive securities are anti-dilutive. | |||||||||
At March 31, 2015 and 2014, the Company had the following anti-dilutive securities outstanding which were excluded from the calculation of diluted net loss per share: | |||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Warrants | 38,219 | 175,832 | |||||||
Stock options | 21,952 | 357,511 | |||||||
60,171 | 533,343 | ||||||||
Other comprehensive loss | Other comprehensive loss | ||||||||
Comprehensive loss is defined as the change in equity of a business enterprise from transactions and other events from non-owner sources. Comprehensive loss includes net earnings (loss) and other non-owner changes in equity that bypass the statement of operations and are reported in a separate component of equity. For the three months ended March 31, 2015 and 2014, other comprehensive loss includes the unrealized loss on investments and foreign currency translation adjustments. | |||||||||
The following table summarizes the components of comprehensive loss: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Reclassification of unrealized gain included in net loss | $ | — | $ | 388 | |||||
Unrealized loss on investments, net of taxes | (22 | ) | (415 | ) | |||||
Unrealized loss on currency translation | (15 | ) | (16 | ) | |||||
Ending Balance | $ | (37 | ) | $ | (43 | ) | |||
Recent accounting pronouncement | Recent accounting pronouncement | ||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers, which supersedes most of the current revenue recognition requirements. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2016 (early adoption is not permitted). The guidance permits the use of either a retrospective or cumulative effect transition method. The adoption of ASU 2014-09 is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||
In June 2014, the FASB issued Accounting Standards Update No. 2014-12 (“ASU 2014-12”), Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period related to stock compensation. The new standard requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. The Company is evaluating the impact, if any, of adopting ASU 2014-12 on its financial statements. | |||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standard requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management must evaluate whether it is probable that known conditions or events, considered in the aggregate, would raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events are identified, the standard requires management’s mitigation plans to alleviate the doubt or a statement of the substantial doubt about the entity’s ability to continue as a going concern to be disclosed in the financial statements. The standard is effective for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is evaluating the impact, if any, of adopting ASU 2014-15 on its financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Activity of Allowance for Doubtful Accounts | The following table shows the activity of the allowance for doubtful accounts: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 140 | $ | 50 | |||||
Charges to costs and expenses | (63 | ) | 105 | ||||||
Accounts charged off, less recoveries | — | (15 | ) | ||||||
Ending balance | $ | 77 | $ | 140 | |||||
Inventories | Inventories are composed of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 12,913 | $ | 14,503 | |||||
Work in progress | 7,468 | 6,357 | |||||||
Finished goods | 1,417 | 1,879 | |||||||
$ | 21,798 | $ | 22,739 | ||||||
Property and Equipment | Property and equipment consisted of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Land and land improvements | $ | 4,133 | $ | 4,133 | |||||
Buildings | 32,487 | 32,482 | |||||||
Machinery, equipment and tooling | 127,404 | 127,158 | |||||||
Leasehold improvements | 7,640 | 7,640 | |||||||
Furniture and fixtures | 961 | 961 | |||||||
Information systems | 1,140 | 1,140 | |||||||
Construction in progress | 3,650 | 3,734 | |||||||
Total cost | 177,415 | 177,248 | |||||||
Accumulated depreciation and amortization | (72,822 | ) | (69,572 | ) | |||||
Property and equipment, net | $ | 104,593 | $ | 107,676 | |||||
Anti-Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share | At March 31, 2015 and 2014, the Company had the following anti-dilutive securities outstanding which were excluded from the calculation of diluted net loss per share: | ||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Warrants | 38,219 | 175,832 | |||||||
Stock options | 21,952 | 357,511 | |||||||
60,171 | 533,343 | ||||||||
Components of Comprehensive Loss | The following table summarizes the components of comprehensive loss: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Reclassification of unrealized gain included in net loss | $ | — | $ | 388 | |||||
Unrealized loss on investments, net of taxes | (22 | ) | (415 | ) | |||||
Unrealized loss on currency translation | (15 | ) | (16 | ) | |||||
Ending Balance | $ | (37 | ) | $ | (43 | ) | |||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Summary of Revenue by Geographic Region | The following table summarizes revenue by geographic region: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
China | $ | 3,351 | $ | 6,450 | |||||
Taiwan | 1,701 | 3,764 | |||||||
United States | 1,523 | 1,370 | |||||||
Korea | 725 | 1,896 | |||||||
Other | 1,610 | 788 | |||||||
Revenue | $ | 8,910 | $ | 14,268 | |||||
Summary of Revenue by Product Type | The following table summarizes revenue by product type: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Core | $ | 5,109 | $ | 11,355 | |||||
Wafer | 1,891 | 1,095 | |||||||
Optical | 1,769 | 1,638 | |||||||
Research & Development | 141 | 125 | |||||||
Other | — | 55 | |||||||
Revenue | $ | 8,910 | $ | 14,268 | |||||
Summary of Assets by Geographic Region | The following table summarizes assets by geographic region: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
United States | $ | 146,828 | $ | 156,105 | |||||
Malaysia | 38,796 | 38,765 | |||||||
Other | 26 | 36 | |||||||
Total Assets | $ | 185,650 | $ | 194,906 | |||||
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Amortized Cost and Gross Unrealized Gains and Losses on All Securities | The following table presents the amortized cost and gross unrealized gains and losses on all securities at March 31, 2015: | ||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in thousands) | |||||||||||||||||
Short-term Investments: | |||||||||||||||||
FDIC Guaranteed certificates of deposit | $ | 3,080 | $ | — | $ | 1 | $ | 3,079 | |||||||||
Corporate notes/bonds | 12,806 | — | 9 | 12,797 | |||||||||||||
Total short-term investments | $ | 15,886 | $ | — | $ | 10 | $ | 15,876 | |||||||||
The following table presents the amortized cost and gross unrealized gains and losses on all securities at December 31, 2014: | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in thousands) | |||||||||||||||||
Short-term Investments: | |||||||||||||||||
FDIC Guaranteed certificates of deposit | $ | 2,120 | $ | — | $ | 2 | $ | 2,118 | |||||||||
Corporate Notes/Bonds | 18,458 | — | 14 | 18,444 | |||||||||||||
Total short-term investments | $ | 20,578 | $ | — | $ | 16 | $ | 20,562 | |||||||||
Summarized Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2015: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash Equivalents: | |||||||||||||||||
Money market funds | $ | 21,672 | $ | — | $ | — | $ | 21,672 | |||||||||
Investments: | |||||||||||||||||
Available-for-sales securities—current | |||||||||||||||||
FDIC Guaranteed certificates of deposit | — | 3,079 | — | 3,079 | |||||||||||||
Corporate notes/bonds | — | 12,797 | — | 12,797 | |||||||||||||
Total | $ | 21,672 | $ | 15,875 | $ | — | $ | 37,548 | |||||||||
The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2014: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash Equivalents: | |||||||||||||||||
Money market funds | $ | 21,963 | $ | — | $ | — | $ | 21,963 | |||||||||
Investments: | |||||||||||||||||
Available-for-sales securities—current: | |||||||||||||||||
FDIC Guaranteed certificates of deposit | — | 2,118 | — | 2,118 | |||||||||||||
Corporate notes/bonds | — | 18,444 | — | 18,444 | |||||||||||||
Total | $ | 21,963 | $ | 20,562 | $ | — | $ | 42,525 | |||||||||
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Summary of Activity of Stock Incentive and Equity Plans | The following table summarizes the activity of the stock incentive and equity plans as of March 31, 2015 and changes during the three months then ended: | ||||||||||||||||||||
Shares | Number of | Weighted- | Number of | Number of | |||||||||||||||||
available | options | average option | restricted | restricted | |||||||||||||||||
for grant | outstanding | exercise price | stock and | stock units | |||||||||||||||||
board | outstanding | ||||||||||||||||||||
shares | |||||||||||||||||||||
issued | |||||||||||||||||||||
At January 1, 2015 | 1,772,529 | 2,238,286 | $ | 10.31 | 140,653 | 134,731 | |||||||||||||||
Granted | (165,239 | ) | 60,000 | 3.97 | 60,802 | 44,437 | |||||||||||||||
Exercised | — | — | — | — | — | ||||||||||||||||
Cancelled/forfeited | 41,197 | (46,966 | ) | 13.72 | — | (12,369 | ) | ||||||||||||||
At March 31, 2015 | 1,648,487 | 2,251,320 | $ | 10.09 | 201,455 | 166,799 | |||||||||||||||
Summary of Non-vested Options | A summary of the Company’s non-vested options during the three month period ended March 31, 2015 is presented below: | ||||||||||||||||||||
Options | Weighted- | ||||||||||||||||||||
average | |||||||||||||||||||||
exercise | |||||||||||||||||||||
price | |||||||||||||||||||||
Non-vested at January 1, 2015 | 628,733 | $ | 5.93 | ||||||||||||||||||
Granted | 60,000 | 3.97 | |||||||||||||||||||
Vested | (31,375 | ) | 6.81 | ||||||||||||||||||
Forfeited | (27,699 | ) | 11.4 | ||||||||||||||||||
Non-vested at March 31, 2015 | 629,659 | $ | 5.46 | ||||||||||||||||||
Restricted Stock Units [Member] | |||||||||||||||||||||
Analysis of Restricted Stock Units Issued | A summary of the Company’s restricted stock units is as follows: | ||||||||||||||||||||
RSUs | Weighted average price at | Aggregate intrinsic | |||||||||||||||||||
outstanding | time of grant | value | |||||||||||||||||||
Non-vested restricted stock units as of January 1, 2015 | 134,731 | $ | 5.41 | ||||||||||||||||||
Granted | 44,437 | 4.36 | |||||||||||||||||||
Cancelled | (12,369 | ) | 5.59 | ||||||||||||||||||
Non-vested at March 31, 2015 | 166,799 | $ | 5.12 | $ | 657,000 | ||||||||||||||||
Restricted Stock [Member] | |||||||||||||||||||||
Analysis of Restricted Stock Units Issued | An analysis of restricted stock issued is as follows: | ||||||||||||||||||||
Non-vested restricted stock as of January 1, 2015 | 12,207 | ||||||||||||||||||||
Granted | 60,802 | ||||||||||||||||||||
Vested | (6,980 | ) | |||||||||||||||||||
Non-vested restricted stock as of March 31, 2015 | 66,029 | ||||||||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Accounting Policies [Abstract] | ||
Impairment of investments | $0 | |
Based on these sales prices reduced inventory and increased cost of goods sold | 252,000 | 1,100,000 |
Impairment losses on long lived assets | 0 | |
Revenue recorded from government contract | 141,000 | 125,000 |
Total value of the contract | 4,700,000 | |
Value of contract recognized | $3,400,000 | |
Period of contract | 3 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Activity of Allowance for Doubtful Accounts (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning balance | $140 | $50 |
Charges to costs and expenses | -63 | 105 |
Accounts charged off, less recoveries | -15 | |
Ending balance | $77 | $140 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Raw materials | $12,913 | $14,503 |
Work in progress | 7,468 | 6,357 |
Finished goods | 1,417 | 1,879 |
Inventories | $21,798 | $22,739 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Property and Equipment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $177,415 | $177,248 |
Accumulated depreciation and amortization | -72,822 | -69,572 |
Property and equipment, net | 104,593 | 107,676 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 4,133 | 4,133 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 32,487 | 32,482 |
Machinery, Equipment and Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 127,404 | 127,158 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 7,640 | 7,640 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 961 | 961 |
Information Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 1,140 | 1,140 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $3,650 | $3,734 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Anti-Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of diluted net loss per share | 60,171 | 533,343 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of diluted net loss per share | 21,952 | 357,511 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of diluted net loss per share | 38,219 | 175,832 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Components of Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Reclassification of unrealized gain included in net loss | $388 | |
Unrealized loss on investments, net of taxes | -22 | -415 |
Unrealized loss on currency translation | -15 | -16 |
Ending Balance | ($37) | ($43) |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Segment_Information_Summary_of
Segment Information - Summary of Revenue by Geographic Region (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $8,910 | $14,268 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 3,351 | 6,450 |
Taiwan [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 1,701 | 3,764 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 1,523 | 1,370 |
Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 725 | 1,896 |
Other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $1,610 | $788 |
Segment_Information_Summary_of1
Segment Information - Summary of Revenue by Product Type (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Product Information [Line Items] | ||
Revenue | $8,910 | $14,268 |
Core [Member] | ||
Product Information [Line Items] | ||
Revenue | 5,109 | 11,355 |
Wafer [Member] | ||
Product Information [Line Items] | ||
Revenue | 1,891 | 1,095 |
Optical [Member] | ||
Product Information [Line Items] | ||
Revenue | 1,769 | 1,638 |
Research & Development [Member] | ||
Product Information [Line Items] | ||
Revenue | 141 | 125 |
Other Product [Member] | ||
Product Information [Line Items] | ||
Revenue | $55 |
Segment_Information_Summary_of2
Segment Information - Summary of Assets by Geographic Region (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $185,650 | $194,906 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | 146,828 | 156,105 |
Malaysia [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | 38,796 | 38,765 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $26 | $36 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Short-term investments | $15,876,000 | $20,562,000 |
Time deposits of cash and cash equivalents | 3,500,000 | 2,400,000 |
FDIC Guaranteed Certificates of Deposit [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Short-term investments | 3,100,000 | |
Corporate Notes/Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Short-term investments | $12,800,000 |
Investments_Amortized_Cost_and
Investments - Amortized Cost and Gross Unrealized Gains and Losses on All Securities (Detail) (Short-term Investments [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $15,886 | $20,578 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 10 | 16 |
Fair Value | 15,876 | 20,562 |
FDIC Guaranteed Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,080 | 2,120 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 2 |
Fair Value | 3,079 | 2,118 |
Corporate Notes/Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,806 | 18,458 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 9 | 14 |
Fair Value | $12,797 | $18,444 |
Investments_Summarized_Financi
Investments - Summarized Financial Assets Measured at Fair Value on Recurring Basis (Detail) (Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | $37,548 | $42,525 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 21,672 | 21,963 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 15,875 | 20,562 |
Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash Equivalents | 21,672 | 21,963 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash Equivalents | 21,672 | 21,963 |
FDIC Guaranteed Certificates of Deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 3,079 | 2,118 |
FDIC Guaranteed Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 3,079 | 2,118 |
Corporate Notes/Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 12,797 | 18,444 |
Corporate Notes/Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | $12,797 | $18,444 |
Significant_Customers_Addition
Significant Customers - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Customer | Customer | ||
Revenue, Major Customer [Line Items] | |||
Number of significant customer | 1 | 4 | |
Trade receivables | 10.00% | ||
Accounts receivable | 57.00% | 50.00% | |
Customer One [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 29.00% | 21.00% | |
Customer Two [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 14.00% | ||
Customer Three [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 11.00% | ||
Customer Four [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 11.00% |
Stockholders_Equity_Additional
Stockholders Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | ||
Mar. 20, 2014 | Jan. 13, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Common stock reserved for issuance upon exercise of outstanding common stock options and vesting of restricted stock units | 2,418,119 | |||
Common stock reserved for future grants of stock options | 1,648,487 | |||
Common stock reserved for future exercise of outstanding warrants | 267,826 | |||
Issue of common stock shares | 2,875,000 | 3,047,500 | ||
Number of shares sold pursuant to full exercise of underwriter's over allotment option | 375,000 | 397,500 | ||
Exercise price of shares | $13 | $10.65 | ||
Gross proceeds from public offering | $4,900,000 | $32,500,000 | ||
Net proceeds from public offering | 4,400,000 | 30,300,000 | ||
Underwriting of Discount and expense | 319,000 | 2,300,000 | ||
Estimated costs of public offering | $148,000 | |||
Common stock warrants outstanding | 267,826 | 267,826 | ||
Common stock warrants exercised | 0 |
Stock_Incentive_Plans_Addition
Stock Incentive Plans - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | |
Aug. 02, 2011 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of share of common stock purchased | 1 | ||
Stock compensation expense | $200,000 | $289,000 | |
Unrecognized compensation cost related to non vested awards | 1,700,000 | ||
Stock based plan expect to recognize weighted average period | 2 years 8 months 9 days | ||
Historical stock price average, number of years considered | 5 years | ||
Intrinsic value of options outstanding | 0 | 0 | |
Weighted average fair value options granted | $3.97 | ||
Expected term | 5 years 6 months | ||
Risk free interest rate | 1.41% | ||
Expected volatility | 65.00% | ||
Dividend yield | 0.00% | ||
Expected forfeiture rate | 18.56% | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to non vested awards | 610,000 | ||
Stock based plan expect to recognize weighted average period | 2 years 7 months 6 days | ||
Stock compensation expense | 61,000 | 25,000 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $73,000 | $134,000 | |
2001 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares awarded or sold | 1,449,667 | ||
Plan expiration date | 2-Aug-11 |
Stock_Incentive_Plans_Summary_
Stock Incentive Plans - Summary of Activity of Stock Incentive and Equity Plans (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Shares available for grant | |
Shares available for grant, Beginning balance | 1,772,529 |
Shares available for grant, Granted | -165,239 |
Shares available for grant, Exercised | 0 |
Shares available for grant, Cancelled/forfeited | 41,197 |
Shares available for grant, Ending balance | 1,648,487 |
Number of options outstanding | |
Number of options outstanding, Beginning balance | 2,238,286 |
Number of options outstanding, Granted | 60,000 |
Number of options outstanding, Exercised | 0 |
Shares available for grant, Cancelled/forfeited | -46,966 |
Number of options outstanding, Ending balance | 2,251,320 |
Weighted - average option exercise price | |
Weighted - average option exercise price, Beginning balance | $10.31 |
Weighted - average option exercise price, Granted | $3.97 |
Weighted - average option exercise price, Exercised | $0 |
Shares available for grant, Cancelled/forfeited | $13.72 |
Weighted - average option exercise price, Ending balance | $10.09 |
Number of restricted stock and board shares issued | |
Number of restricted stock shares issued, Beginning balance | 140,653 |
Number of restricted stock shares issued, Granted | 60,802 |
Number of restricted stock shares issued, Exercised | 0 |
Shares available for grant, Cancelled/forfeited | 0 |
Number of restricted stock shares issued, Ending balance | 201,455 |
Restricted Stock Units [Member] | |
Number of restricted stock units outstanding | |
Number of restricted stock units outstanding, Beginning balance | 134,731 |
Number of restricted stock units outstanding, Granted | 44,437 |
Number of restricted stock units outstanding, Exercised | 0 |
Shares available for grant, Cancelled/forfeited | -12,369 |
Number of restricted stock units outstanding, Ending balance | 166,799 |
Stock_Incentive_Plans_Summary_1
Stock Incentive Plans - Summary of Non-vested Options (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Options | |
Options, Granted | 60,000 |
Weighted-average exercise price | |
Weighted-average exercise price, Granted | $3.97 |
Weighted-average exercise price, Forfeited | $13.72 |
Non-vested Options [Member] | |
Options | |
Options, Non-vested, Beginning balance | 628,733 |
Options, Granted | 60,000 |
Options, Vested | -31,375 |
Options, Forfeited | -27,699 |
Options, Non-vested, Ending balance | 629,659 |
Weighted-average exercise price | |
Weighted-average exercise price, Beginning balance | $5.93 |
Weighted-average exercise price, Granted | $3.97 |
Weighted-average exercise price, Vested | $6.81 |
Weighted-average exercise price, Forfeited | $11.40 |
Weighted-average exercise price, Ending balance | $5.46 |
Stock_Incentive_Plans_Summary_2
Stock Incentive Plans - Summary of Restricted Stock Units (Detail) (Restricted Stock Units [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested restricted stock, Beginning balance | 134,731 |
Granted | 44,437 |
Cancelled | -12,369 |
Non-vested restricted stock, Ending balance | 166,799 |
Weighted average price at time of grant, Beginning balance | $5.41 |
Weighted average price at time of grant, Granted | $4.36 |
Weighted-average exercise price, Cancelled | $5.59 |
Weighted average price at time of grant, Ending balance | $5.12 |
Aggregate intrinsic value, Ending balance | $657,000 |
Stock_Incentive_Plans_Analysis
Stock Incentive Plans - Analysis of Restricted Stock Units and Restricted Stock Issued (Detail) (Restricted Stock [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested restricted stock, Beginning balance | 12,207 |
Granted | 60,802 |
Vested | -6,980 |
Non-vested restricted stock, Ending balance | 66,029 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |
Cost of purchasing equipment or components | $3.60 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $36 | $6 |
Effective income tax rate | 0.44% | |
U.S. federal statutory rate | 35.00% | |
State (net of federal benefit) statutory rate | 6.20% |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | ||
Jan. 02, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 02, 2013 | |
Debt Disclosure [Abstract] | ||||
Term agreement of senior secured credit facility | 3 years | |||
Amount of senior secured credit facility | $25,000,000 | |||
Percentage of eligible account receivable | 80.00% | |||
Percentage of domestically held raw material and finished goods inventory | 35.00% | |||
Percentage of advances against inventory | 40.00% | |||
Amount of aggregate outstanding principal on the revolving line of credit | 10,000,000 | |||
Option to borrow at an interest rate of LIBOR plus | 2.75% | |||
Option to borrow at an interest rate of Wall Street Journal prime rate plus | 0.50% | |||
Liquidity rate | 20,000,000 | |||
Borrowing interest rate options | 2.25% | |||
Percentage of unused revolving line facility fee | 0.38% | |||
Adjusted quick ratio | 1.4 | |||
Percentage of maintain operating and other deposit accounts | 25.00% | |||
Interest expense charged on the unused portion of the facility | $23,000 | $23,000 |