Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 09, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RBCN | ||
Entity Registrant Name | RUBICON TECHNOLOGY, INC. | ||
Entity Central Index Key | 1,410,172 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 26,878,891 | ||
Entity Public Float | $ 16,363,791 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 17,672,000 | $ 21,216,000 |
Restricted cash | 163,000 | 170,000 |
Short-term investments | 0 | 8,895,000 |
Accounts receivable, net | 2,585,000 | 1,738,000 |
Inventories | 8,000,000 | 21,333,000 |
Other inventory supplies | 1,486,000 | 5,717,000 |
Prepaid expenses and other current assets | 1,082,000 | 1,188,000 |
Assets held for sale | 14,761,000 | |
Total current assets | 45,749,000 | 60,257,000 |
Property and equipment, net | 7,110,000 | 57,569,000 |
Other assets | 154,000 | 1,416,000 |
Total assets | 53,013,000 | 119,242,000 |
Liabilities and stockholders' equity | ||
Accounts payable | 948,000 | 3,256,000 |
Accrued payroll | 182,000 | 164,000 |
Accrued and other current liabilities | 602,000 | 1,328,000 |
Corporate income and franchise taxes | 568,000 | 207,000 |
Accrued real estate taxes | 241,000 | 238,000 |
Short-term loan payable | 1,500,000 | |
Advance payments | 23,000 | 9,000 |
Total current liabilities | 2,564,000 | 6,702,000 |
Deferred tax liability | 554,000 | |
Total liabilities | 2,564,000 | 7,256,000 |
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; 28,603,665 and 28,007,811 shares issued; 26,828,821 and 26,232,967 shares outstanding | 29,000 | 28,000 |
Additional paid-in capital | 374,903,000 | 373,565,000 |
Treasury stock, at cost, 1,774,844 shares | (12,148,000) | (12,148,000) |
Accumulated other comprehensive loss | (30,000) | (33,000) |
Accumulated deficit | (312,305,000) | (249,426,000) |
Total stockholders' equity | 50,449,000 | 111,986,000 |
Total liabilities and stockholders' equity | $ 53,013,000 | $ 119,242,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 28,603,665 | 28,007,811 |
Common stock, shares outstanding | 26,828,821 | 26,232,967 |
Treasury stock, shares | 1,774,844 | 1,774,844 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Revenue | $ 19,630 | $ 23,818 |
Cost of goods sold | 45,638 | 46,961 |
Gross loss | (26,008) | (23,143) |
Operating expenses: | ||
General and administrative | 7,695 | 9,589 |
Sales and marketing | 1,444 | 1,363 |
Research and development | 2,550 | 2,210 |
Long-lived asset impairment charge | 26,554 | 39,597 |
(Gain) loss on disposal of assets | (1,534) | 47 |
Loss from operations | (62,717) | (75,949) |
Other income (expense): | ||
Interest income | 73 | 71 |
Interest expense | (99) | (109) |
Realized loss on foreign currency translation | (359) | (1,869) |
Total other expense | (385) | (1,907) |
Loss before income taxes | (63,102) | (77,856) |
Income tax benefit | 223 | 26 |
Net loss | $ (62,879) | $ (77,830) |
Net loss per common share | ||
Basic | $ (2.39) | $ (2.98) |
Diluted | $ (2.39) | $ (2.98) |
Weighted average common shares outstanding used in computing net loss per common share | ||
Basic | 26,356,359 | 26,156,170 |
Diluted | 26,356,359 | 26,156,170 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (62,879) | $ (77,830) |
Other comprehensive income (loss): | ||
Unrealized gain on investments, net of taxes | 5 | 10 |
Unrealized loss on currency translation | (2) | |
Other comprehensive income | 3 | 10 |
Comprehensive loss | $ (62,876) | $ (77,820) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accum Other Comp Inc. [Member] | Accum Deficit [Member] |
Beginning Balance at Dec. 31, 2014 | $ 188,560 | $ 28 | $ (12,148) | $ 372,319 | $ (43) | $ (171,596) |
Beginning Balance, Shares at Dec. 31, 2014 | 27,913,788 | |||||
Beginning Balance, Treasury Shares at Dec. 31, 2014 | (1,774,844) | |||||
Exercise of stock options | $ 4 | 4 | ||||
Exercise of stock options, Shares | 5,692 | 5,692 | ||||
Stock-based compensation | $ 731 | 731 | ||||
Restricted stock issued, net of restricted shares withheld for employee taxes | 287 | 287 | ||||
Restricted stock issued, net of restricted shares withheld for employee taxes, Shares | 58,899 | |||||
Common stock issued, net of shares withheld for employee taxes | 224 | 224 | ||||
Common stock issued, net of shares withheld for employee taxes, Shares | 29,432 | |||||
Unrealized gain on investments, net of tax | 10 | 10 | ||||
Net loss | (77,830) | (77,830) | ||||
Ending Balance at Dec. 31, 2015 | $ 111,986 | $ 28 | $ (12,148) | 373,565 | (33) | (249,426) |
Ending Balance, Shares at Dec. 31, 2015 | 28,007,811 | |||||
Ending Balance, Treasury Shares at Dec. 31, 2015 | (1,774,844) | (1,774,844) | ||||
Exercise of stock options | ||||||
Stock-based compensation | 527 | 527 | ||||
Restricted stock issued, net of restricted shares withheld for employee taxes | 559 | $ 1 | 558 | |||
Restricted stock issued, net of restricted shares withheld for employee taxes, Shares | 529,896 | |||||
Common stock issued, net of shares withheld for employee taxes | 253 | 253 | ||||
Common stock issued, net of shares withheld for employee taxes, Shares | 65,958 | |||||
Foreign currency translation adjustments | (2) | (2) | ||||
Unrealized gain on investments, net of tax | 5 | 5 | ||||
Net loss | (62,879) | (62,879) | ||||
Ending Balance at Dec. 31, 2016 | $ 50,449 | $ 29 | $ (12,148) | $ 374,903 | $ (30) | $ (312,305) |
Ending Balance, Shares at Dec. 31, 2016 | 28,603,665 | |||||
Ending Balance, Treasury Shares at Dec. 31, 2016 | (1,774,844) | (1,774,844) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (62,879) | $ (77,830) |
Adjustments to reconcile net loss to net cash (used in) operating activities | ||
Depreciation and amortization | 6,100 | 11,404 |
Net (gain) loss on disposal of assets | (1,534) | 47 |
Stock-based compensation | 1,348 | 1,250 |
Long-lived asset impairment charge | 26,554 | 39,597 |
Deferred taxes | (554) | (39) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (847) | 6,585 |
Inventories | 13,641 | 73 |
Other inventory supplies | 4,263 | 2,166 |
Prepaid expenses and other assets | 1,304 | 275 |
Accounts payable | (2,354) | (247) |
Accrued payroll | 22 | (323) |
Corporate income and franchise taxes | 360 | (63) |
Accrued real estate taxes | 2 | (41) |
Advance payments | 14 | (1) |
Accrued and other current liabilities | (725) | 431 |
Net cash used in operating activities | (15,285) | (16,716) |
Cash flows from investing activities | ||
Purchases of property and equipment | (704) | (941) |
Proceeds from disposal of assets | 5,344 | |
Purchase of investments | (28) | (2,322) |
Proceeds from sale of investments | 8,928 | 14,000 |
Net cash provided by investing activities | 13,540 | 10,737 |
Cash flows from financing activities | ||
Proceeds from exercise of options | 4 | |
Restricted cash | 7 | 13 |
Net change in short-term borrowings | (1,500) | 1,500 |
Taxes paid related to net share settlement of equity awards | (8) | (8) |
Net cash (used in) provided by financing activities | (1,501) | 1,509 |
Net effect of currency translation | (298) | 1,333 |
Net decrease in cash and cash equivalents | (3,544) | (3,137) |
Cash and cash equivalents, beginning of year | 21,216 | 24,353 |
Cash and cash equivalents, end of year | 17,672 | 21,216 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | $ 99 | $ 109 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of business Rubicon Technology, Inc., a Delaware corporation (the “Company”), is a vertically integrated, advanced materials provider specializing in monocrystalline sapphire for applications in optical and industrial systems. The Company sells its products on a global basis to customers in Asia, Australia, North America and Europe. The Company maintains its operating facilities in the Chicago metropolitan area. Principles of consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries, Rubicon Worldwide LLC, Rubicon Sapphire Technology (Malaysia) SDN BHD, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea. All intercompany transactions and balances have been eliminated in consolidation. A summary of the Company’s significant accounting policies applied in the preparation of the accompanying Consolidated Financial Statements follows. Cash and cash equivalents The Company considers all unrestricted highly liquid investments immediately available to be cash equivalents. Cash equivalents primarily consist of time deposits with banks, unsettled trades and brokerage money market accounts. Restricted cash A summary of the Company’s restricted cash at December 31, 2016 and 2015 is as follows: As of December 31, 2016 2015 (in thousands) Certificates of deposit $ 5 $ 5 Flexible spending funds 2 2 Fixed deposit pledge 156 163 $ 163 $ 170 Foreign currency translation and transactions Rubicon Worldwide LLC, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea’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, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea are recorded as a separate component of accumulated other comprehensive income (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 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 income (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, FDIC guaranteed certificates of deposit, common stock, corporate notes and government securities. Investments classified as available-for-sale The Company reviews its available-for-sale Treasury stock The Company records treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Accounts receivable The majority of the Company’s accounts receivable is due from manufacturers serving the light-emitting diodes (“LED”) and optical systems and specialty 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 a customer’s account is 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 such write-offs, net of payments received, are recorded as a reduction to bad debt expense. The following table shows the activity of the allowance for doubtful accounts: Year ended December 31, 2016 2015 (in thousands) Beginning balance $ 389 $ 140 Charges to costs and expenses (235 ) 235 Accounts write offs, less recoveries (123 ) 14 Ending balance $ 31 $ 389 Inventories Inventories are valued at the lower of cost or market. Raw materials cost is determined using the first-in, first-out work-in-process 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. At times in 2016 and 2015, the Company has accepted sales orders for core and wafer products at prices lower than cost. Based on these sales prices, the Company has recorded for the years ended December 31, 2016 and 2015, a lower of cost or market adjustment which reduced inventory and increased cost of goods sold by $1.1 million and $3.9 million, respectively. The continual decline of prices and worldwide over supply of material has significantly limited the sales of the Company’s two-inch two-inch two-inch With the decision to exit the LED market, the discontinuation of polished and patterned wafer production will result in a significant decrease in crystal growth production and thus impact the amount of raw material needed for future production. Accordingly, raw material in excess of the amount needed for future production has been written down and for the year ended December 31, 2016, an excess and obsolete adjustment was recorded which reduced inventory and increased cost of goods sold by $4.0 million. Inventories are composed of the following: As of December 31, 2016 2015 (in thousands) Raw materials $ 3,112 $ 7,346 Work-in-process 4,251 9,920 Finished goods 637 4,067 $ 8,000 $ 21,333 Other inventory supplies The Company’s other inventory supplies include stock of consumable and spare parts used in the manufacturing process. With the decision to focus on optical and industrial products, the Company determined it had consumable parts stock that was obsolete and recorded for the year ended December 31, 2016 a consumable stock write-down of $3.2 million. Property and equipment Property and equipment consisted of the following: As of December 31, 2016 2015 (in thousands) Land and land improvements $ — $ 4,133 Buildings — 26,097 Machinery, equipment and tooling 17,769 50,364 Leasehold improvements 4,624 7,141 Information systems 991 1,105 Furniture and fixtures 699 816 Construction in progress 263 1,327 Total cost 24,346 90,983 Accumulated depreciation and amortization (17,236 ) (33,414 ) Property and equipment, net $ 7,110 $ 57,569 Property and equipment are carried at cost and depreciated over their estimated useful lives using the straight-line method. The cost of maintenance and repairs is charged to expense as incurred. Significant renewals and improvements are capitalized. Depreciation and amortization expense associated with property and equipment was $6.1 million and $11.4 million for the years ended December 31, 2016 and 2015, respectively. Construction in progress includes costs associated with the construction of furnaces and deposits made on equipment purchases. The estimated useful lives are as follows: Asset description Life Buildings 39 years Machinery, equipment and tooling 3-10 years Leasehold improvements Lesser of life of lease or economic life Furniture and fixtures 7 years Information systems 3 years Other assets The Company’s other assets include overhaul costs that are accounted for using the deferral method. These overhaul costs are recorded at cost on the balance sheet as other assets and are amortized over terms in accordance with their respectful useful lives. Warranty cost The Company’s sales terms include a warranty that its products will meet certain specifications. The Company records a current liability for the expected cost of warranty-related claims at the time of sale. The warranty reserve is included in accrued and other current liabilities on the Consolidated Balance Sheets. The following table presents changes in the Company’s product warranty liability: Year ended 2016 2015 (in thousands) Balance, beginning of period $ 73 $ 97 Charged to cost of sales (1 ) 90 Actual product warranty expenditures (45 ) (114 ) Balance, end of period $ 27 $ 73 Fair value of financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, accounts receivable, and accounts payable. The carrying values of these assets and liabilities approximate their fair values due to the short-term nature of these instruments at December 31, 2016 and 2015. Concentration of credit risks and other risks and uncertainties Financial instruments that could potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. At December 31, 2016 and 2015, the Company had $525,000 and $419,000, respectively, on deposit at foreign financial institutions. At December 31, 2016 and 2015, the Company had $6.0 million and $2.9 million, respectively, on deposit at financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation and other foreign governmental insurance agencies. The Company performs a periodic evaluation of these institutions for relative credit standing. The Company has not experienced any losses in such accounts and management believes it is not exposed to any significant risk of loss on these balances. The Company currently depends on a small number of suppliers for certain raw materials, components, services and equipment, including key materials such as aluminum oxide powder and certain furnace components. If the supply of these components were to be disrupted or terminated, or if these suppliers were unable to supply the quantities of raw materials required, the Company may have difficulty in finding, or may be unable to find, alternative sources for these items. The Company also uses third parties for certain finishing functions for its products, including the slicing and polishing of its sapphire crystal inventory. These types of services are only available from a limited number of third parties. The Company’s ability to successfully outsource these finishing functions will substantially depend on its ability to develop, maintain and expand its strategic relationship with these third parties. As a result, the Company may be unable to meet the demand for its products, which could have a material adverse impact on the Company. Concentration of credit risk related to revenue and accounts receivable is discussed in Note 4. 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 • Title has passed and the product has been delivered. • The price is fixed or determinable • Collection of the resulting receivable is reasonably assured. 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 (the LANCE government contract) to produce large-area sapphire windows on a cost plus fixed fee basis. The Company records revenue on a gross basis as costs are incurred plus a portion of the fixed fee. For the years ended December 31, 2016 and 2015, $289,000 and $661,000, respectively, of revenue were recorded. At December 31, 2016, the estimated costs to complete the contract were in excess of the contract value. For the year ended December 31, 2016, the Company accrued $217,000 for the estimated costs of completion. To date, the Company has recorded $4.3 million in revenue and the total value of the contract is $4.7 million. The Company does not provide maintenance or other services and it does not have sales that involve multiple elements or deliverables. Shipping and handling costs The Company records costs incurred in connection with shipping and handling of products as cost of goods sold. Amounts billed to customers in connection with these costs are included in revenue and are not material for any of the periods presented in the accompanying financial statements. Sales tax The Company collects and remits sales taxes on products sold to customers and reports such amounts under the net method in its Consolidated Statements of Operations and records a liability until remitted to the respective tax authority. Stock-based compensation The Company requires all share-based payments to employees, including grants of employee stock options to be measured at fair value and expensed in the Consolidated Statements of Operations over the service period (generally the vesting period) of the grant. Expense is recognized in the Consolidated Statements of Operations for these share-based payments. Research and development Research and development costs are expensed as incurred. Research and development expense was $2.5 million and $2.2 million for the years ended December 31, 2016 and 2015, respectively. Accounting for uncertainty in income taxes The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the years ended December 31, 2016 and 2015. The Company is subject to taxation in the U.S., Japan and in a state jurisdiction. The Company is exempt from Malaysian income tax for a five year period beginning in 2009 with a five year renewal. As of the December 31, 2016, the Company requested the Malaysian government to modify the tax holiday to allow it to extend through 2016 even though the Company did not meet the original requirements. Due to the uncertainty of the modification being granted, at December 31, 2016 the Company recorded a current income tax provision for Malaysia income taxes with the expectation that the holiday will not be granted. Due to the existence of net operating loss carryforwards, tax years ended December 31, 2001 through 2006, 2008, 2009 and 2011 through 2015 are open to examination by tax authorities for Federal purposes. Due to net operating loss carryforwards at the State level, tax years ended 2004 through 2006 and 2008 through 2015 are open to examination by state tax authorities. Tax years 2013 through 2015 are open to examination by tax authorities in Malaysia. Income taxes Deferred tax assets and liabilities are provided for temporary differences between financial reporting and income tax bases of assets and liabilities, and are measured using the enacted tax rates and laws expected to be in effect when the differences will reverse. Deferred income taxes also arise from the future benefits of net operating loss carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Full valuation allowances on net deferred tax assets are maintained until an appropriate level of profitability that generates taxable income is deemed sustainable or until a tax strategy is developed that would enable the Company to conclude that it is more likely than not that a portion of the deferred tax assets will be realizable. Based on an evaluation in accordance with the accounting standards, as of December 31, 2016 and 2015, a valuation allowance has been recorded against the net U.S. and Malaysia 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. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Other comprehensive loss Comprehensive loss is defined as the change in equity of a business enterprise from transactions and other events from non-owner non-owner Year Ended December 31, 2016 2015 (in thousands) Reclassification of unrealized gain included in net loss $ — $ — Unrealized loss on investments, net of tax (12 ) (17 ) Unrealized loss on currency translation (18 ) (16 ) Ending balance $ (30 ) $ (33 ) Net loss per common share Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of diluted common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted shares outstanding any common stock equivalents, outstanding stock options and warrants based on the treasury stock method. Diluted net loss per common share is the same as basic net loss per common share for the years ended December 31, 2016 and 2015 because the effects of potentially dilutive securities are anti-dilutive. As of December 31, 2016 and 2015, diluted shares outstanding were the same as basic shares outstanding. New accounting pronouncements adopted In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15 2014-15”), Presentation of Financial Statements—Going Concern (Subtopic 205-40): 2014-15 2014-15, Recent accounting pronouncements In July 2015, the FASB issued ASU No. 2015-11 2015-11”), Inventory (Topic 330): Simplifying the Measurement of Inventory in-scope 2015-11 2015-11 In January 2016, the FASB issued ASU No. 2016-01 2016-01”), Financial Instruments—Overall (Subtopic 825-10): 2016-01 In February 2016, the FASB issued ASU No. 2016-02 2016-02”), Leases (Topic 842) 2016-02 2016-02 2016-02 In March 2016, the FASB issued ASU No. 2016-09 2016-09”), Compensation—Stock Compensation Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09 2016-09 In April 2016, the FASB issued ASU No. 2016-10 (“ASU 2016-10”), Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. No. 2014-09, 2014-09”), Revenue from Contracts with Customers (Topic 606), No. 2016-12, (“ASU 2016-12”), 2014-09. In August 2016, the FASB issued ASU No. 2016-15 2016-15”), Statement of Cash Flows (Topic230): Classification of Certain Cash Receipts and Cash Payments 2016-15 2016-15 In January 2017, the FASB issued ASU No. 2017-01 2017-01”), 2017-01 2017-01 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 2. SEGMENT INFORMATION The Company has determined that it operates in only one 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 Year Ended December 31, 2016 2015 (in thousands) Germany $ 8,945 $ 3,718 United States 3,364 4,894 Malaysia 2,880 — Korea 1,486 3,646 Canada 876 522 Taiwan 847 3,490 Australia 509 913 Israel 398 785 China 222 5,499 Other 103 351 Total revenue $ 19,630 $ 23,818 The following table summarizes sales by product type: Year Ended December 31, 2016 2015 (in thousands) Wafer $ 13,121 $ 6,627 Optical 4,568 5,086 Core 1,652 11,444 Research & development 289 661 Total revenue $ 19,630 $ 23,818 The following table summarizes assets by geographic region: As of December 31, 2016 2015 (in thousands) United States $ 47,171 $ 88,916 Malaysia 5,811 30,276 Other 31 50 Total assets $ 53,013 $ 119,242 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 3. INVESTMENTS The Company invests available cash primarily in FDIC guaranteed certificates of deposits and corporate notes. The Company’s investments are classified as available-for-sale The following table presents the amortized cost, and gross unrealized gains and losses on all securities at December 31, 2015: Amortized Cost Gross Gross Fair (in thousands) Short-term investments: FDIC guaranteed certificates of deposit $ 1,920 $ — $ — $ 1,920 Corporate notes/bonds 6,980 — 5 6,975 Total short-term investments $ 8,900 $ — $ 5 $ 8,895 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 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 non-binding The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2016: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 10,949 $ — $ — $ 10,949 Investments: Available-for-sales FDIC guaranteed certificates of deposit — — — — Corporate notes/bonds — — — — Total $ 10,949 $ — $ — $ 10,949 The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2015: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 17,702 $ — $ — $ 17,702 Investments: Available-for-sales FDIC guaranteed certificates of deposit — 1,920 — 1,920 Corporate notes/bonds — 6,975 — 6,975 Total $ 17,702 $ 8,895 $ — $ 26,597 There are no terms or conditions restricting the Company from redeeming any of its investments. In addition to the debt securities noted above, the Company had approximately $6.7 million and $3.5 million of time deposits included in cash and cash equivalents as of December 31, 2016 and 2015, respectively. |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Significant Customers | 4. SIGNIFICANT CUSTOMERS For the year ended December 31, 2016, the Company had one customer that accounted for approximately 60% of its revenue. For the year ended December 31, 2015, the Company had two customers that accounted for approximately 16% and 15% of its revenue. Customers individually representing more than 10% of trade receivables accounted for approximately 75% and 48% of accounts receivable as of December 31, 2016 and 2015, 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. |
Asset Impairment Charges
Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Asset Impairment Charges | 5. ASSET IMPAIRMENT CHARGES 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. The estimated fair value of assets is determined using appraisal techniques which assume the highest and best use of the asset by market participants, considering the use of the asset that is physically possible, legally permissible, and financially feasible at the measurement date. Any impairment losses are recorded as operating expenses, which reduce net income. In the third quarter of 2015, the overall outlook for the sapphire market continued to be depressed as industry analysts reported significant worldwide over capacity and pricing of sapphire products reached historical lows. The Company at that time evaluated its long-lived assets using a cost and market approach to determine the current fair market value. Based on this analysis, an impairment to these assets was indicated, as the recoverable amount of undiscounted cash flows did not exceed the carrying amount of these assets. At December 31, 2015, the Company recorded an asset impairment charge on U.S. and Malaysia machinery, equipment and facilities of $39.6 million. In September 2016, due to the continual decline of prices that has made the prospects of becoming profitable in the LED substrate market unlikely for the foreseeable future, the Company announced its decision to limit its focus to the optical and industrial sapphire markets and to exit the LED market. This resulted in closing of the Malaysia facility. In the fourth quarter of 2016, the Company developed a plan to scale down the remaining operations and sell additional assets that would not be needed. In this regard, the Company identified excess U.S. machinery, equipment and facilities. The Company engaged an independent valuation company to assist in the determination of the fair market value of assets to provide an updated valuation of the U.S. and Malaysia machinery and equipment. The Company evaluated its U.S. asset portfolio for the assets continuing to be used in operations using a cost and market approach to determine the current fair market value. The Company evaluated its Malaysia asset portfolio and excess U.S. assets based on assuming an orderly liquidation plan which considers economic obsolescence and sales of comparable equipment, as it is the Company’s intention to sell these assets. Based on this review, the Company recorded for the year ended December 31, 2016 an asset impairment charge on U.S. and Malaysia machinery and equipment of $12.3 million. The Company is actively pursuing the sale of a 134,400 square foot manufacturing and office facility in Batavia, Illinois, a parcel of extra land the Company owns in Batavia, Illinois, and a 65,000 square foot facility in Penang, Malaysia. Since the expected sale price is below the book value of these properties, for the year ended December 31, 2016, an impairment charge of $14.3 million was recorded. These properties have a combined book value of $14.8 million and, since it is the Company’s intention to complete the sale within the next twelve-month period, these properties were reclassified as current assets held for sale at December 31, 2016. At December 31, 2016, the Company reviewed the current fair market value of the Malaysia assets and concluded no additional adjustments were needed. The Company will continue to assess its long-lived assets to ensure the carrying amount of these assets is still appropriate given any changes in the asset usage, marketplace and other factors used in determining the current fair market value. The table below summarizes the non-financial non-recurring Carrying Quoted Significant Significant Loss for (in thousands) Long lived assets held and used $ 7,110 $ — $ 7,110 $ — $ 12,264 Long lived assets held for sale 14,761 — 14,761 — 14,290 Total nonrecurring for value measurements $ 21,871 $ — $ 21,871 $ — $ 26,554 The table below summarizes the non-financial non-recurring Carrying Quoted Significant Significant Loss for (in thousands) Long lived assets held and used $ 57,569 $ — $ 57,569 $ — $ 39,597 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 6. STOCKHOLDERS’ EQUITY Common stock As of December 31, 2016 the Company had reserved 2,661,244 shares of common stock for issuance upon the exercise of outstanding common stock options and vesting of restricted stock units. Also, 2,432,184 shares of the Company’s common stock were reserved for future grants of stock options and restricted stock units (or other similar equity instruments) under the Rubicon Technology, Inc. 2016 Stock Incentive Plan (the “2016 Plan”) as of December 31, 2016. In addition, 24,380 shares of the Company’s common stock were reserved for future exercise of outstanding warrants as of December 31, 2015. Warrants At December 31, 2015, the Company had outstanding 24,380 warrants to purchase shares of common stock at an exercise price of $3.65 per share. The warrants were issued in conjunction with the issuance of convertible promissory notes issued by the Company to investors from August 2005 through October 2005. The warrants were immediately exercisable and expired 10 years from the date of issuance. These warrants expired during the year ended December 31, 2016. Treasury stock The treasury shares are accounted for using the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. The Board of Directors approved an arrangement to pay to one of its directors in cash one-half |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | 7. STOCK INCENTIVE PLANS The Company sponsored a stock option plan, the Rubicon Technology, Inc. 2001 Equity Plan, as amended (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 could be awarded or sold under the 2001 Plan was 1,449,667 shares. Each option granted under the 2001 Plan entitled the holder to purchase one share of common stock at the specified option exercise price. The exercise price of each incentive stock option granted could not be less than the fair market value on the grant date. Management and the Board of Directors determined vesting periods and expiration dates at the time of the grant. On August 2, 2011, the 2001 Plan expired. Any existing options under the 2001 Plan remain outstanding in accordance with their current terms under the 2001 Plan. In August 2007, the Company adopted the Rubicon Technology Inc. 2007 Stock Incentive Plan, which was amended and restated effective in March 2011 (the “2007 Plan”), and which allowed for the grant of incentive stock options, non-statutory On June 24, 2016, the Company’ stockholders approved adoption of the 2016 Plan effective as of March 17, 2016, which allows for the grant of incentive stock options, non-statutory Pursuant to the 2016 Plan, 2,229,803 shares of the Company’s common stock plus any shares subject to outstanding awards under the 2007 Plan that subsequently expire unexercised, are forfeited without the delivery of shares or are settled in cash, will be available for issuance under the 2016 Plan. The 2016 Plan will automatically terminate on March 17, 2026, unless the Company terminates it sooner. The following table summarizes the activity of the stock incentive and equity plans: Shares Number of Weighted- Number of Number of Outstanding at January 1, 2015 1,772,529 2,238,286 $ 10.31 140,653 134,731 Granted (1,457,826 ) 992,684 1.40 60,802 404,340 Exercised — (5,692 ) 0.78 — (29,432 ) Canceled/forfeited 417,567 (373,710 ) 10.02 — (55,618 ) Outstanding at December 31, 2015 732,270 2,851,568 7.07 201,455 454,021 Authorized 1,900,000 Granted (1,537,692 ) 943,620 0.63 594,072 — Exercised/issued — — — — (133,685 ) Canceled/forfeited 1,337,606 (1,259,783 ) 8.96 (30,701 ) (194,497 ) Outstanding at December 31, 2016 2,432,184 2,535,405 $ 3.73 764,826 125,839 The following table sets forth option grants made during 2016 and 2015 with intrinsic value calculated based on grant date fair value. Date of grant Number of Exercise Intrinsic March – July 2015 92,600 $ 2.43 - $4.04 — September – December 2015 900,084 $ 1.00 - $1.35 — January – April 2016 51,120 $ 0.73 - $1.14 — September 2016 892,500 $ 0.61 — There is no intrinsic value because the exercise price per share of each option was equal to the fair value of the common stock on the date of grant. At December 31, 2016, the exercise prices of outstanding options were as follows: Exercise price Number of Average Number of $ 0.61 - $ 0.73 874,250 9.74 — $ 1.00 - $ 1.35 725,019 8.86 196,438 $ 2.43 - $ 5.20 548,439 5.90 467,564 $ 6.11 - $12.16 206,692 2.89 200,567 $15.00 - $19.49 132,476 2.85 132,476 $20.20 - $32.67 48,529 3.76 48,529 2,535,405 7.62 1,045,574 The weighted average grant date fair value of the options that became vested in the years ended 2016 and 2015 was $928,000 and $1.3 million, respectively. The following table summarizes the activity of non-vested Non-vested Weighted- Non-vested 628,733 $ 5.93 Granted 992,684 1.40 Vested (200,402 ) 6.64 Cancelled (169,054 ) 5.86 Non-vested 1,251,961 2.23 Granted 943,620 0.63 Vested (330,115 ) 2.81 Cancelled (375,635 ) 2.51 Non-vested 1,489,831 $ 1.02 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 December 31, 2016 and 2015, there was no aggregate intrinsic value for options outstanding and exercisable. For the years ended December 31, 2016 and 2015, the Company used historical stock prices as the basis for its volatility assumptions. 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 expected term for the year ended December 31, 2016 and 2015 is based upon the Company’s median average life of its options. The forfeiture rate is based on past history of forfeited options. The expense is being allocated using the straight-line method. For the years ended December 31, 2016 and 2015 the Company recorded $527,000 and $731,000, respectively, of stock option compensation expense. As of December 31, 2016, the Company has $780,000 of total unrecognized compensation cost related to non-vested For the years ended December 31, 2016 and 2015, the assumptions used for the estimated fair value at the date of option grant using the Black-Scholes option-pricing model were as follows: 2016 2015 Weighted average fair value per share of option $0.63 $1.40 Expected term 5.1 years 5.5 years Risk free interest rate 1.24% - 1.73% 1.41% - 1.70% Volatility 65% 65% Dividend yield None None Forfeiture rate 23.1% 18.56% The Company continues to account for options issued prior to January 1, 2006 under the intrinsic value method. A summary of the Company’s RSUs is as follows: RSUs Weighted average price at Aggregate intrinsic Non-vested 134,731 $ 5.41 Granted 404,340 1.48 Vested (29,432 ) 5.44 Cancelled (55,618 ) 5.37 Non-vested 454,021 1.92 Granted — — Vested (133,685 ) 1.60 Cancelled (194,497 ) 2.35 Non-vested 125,839 $ 1.60 $ 75,503 The fair value of each RSU is the market price on the date of grant and is being recorded as compensation expense ratably over the vesting terms. For the years ended December 31, 2016 and 2015, the Company recorded $262,000 and $224,000 of RSU expense, respectively. The RSUs are forfeited by a participant upon termination for any reason and there is no proportionate or partial vesting in the periods between the vesting dates. As of December 31, 2016, there was $168,000 of unrecognized compensation cost related to the non-vested An analysis of restricted stock issued is as follows: Non-vested 12,207 Granted 60,802 Vested (57,809 ) Non-vested 15,200 Granted 594,072 Vested (413,870 ) Cancelled/Forfeited (30,701 ) Non-vested 164,701 For the years ended December 31, 2016 and 2015, the Company recorded $559,000 and $295,000, respectively, of stock compensation expense related to restricted stock. In 2013, the Board of Directors awarded 47,050 shares of restricted stock and 70,365 stock options to key executives at a price of $7.97, the closing price of the shares on the date of the grant. Vesting of the shares was subject to achievement of specified targets by December 31, 2013 and March 31, 2014. All of the milestones were achieved by the specified dates. As of December 31, 2014, 20,911 restricted shares and 31,274 stock options were cancelled. As of December 31, 2015, the remaining restricted shares were vested. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. INCOME TAXES Components of income before income taxes and the income tax provision are as follows: (Loss) before income taxes Year ended December 31, 2016 2015 (in thousands) U.S. $ (50,689 ) $ (67,254 ) Foreign (12,413 ) (10,602 ) Total $ (63,102 ) $ (77,856 ) Income taxes Year ended December 31, 2016 2015 (in thousands) Current U.S. $ — $ — State — — Foreign 331 13 Total current income tax expense 331 13 Deferred U.S. — — State — — Foreign (554 ) (39 ) Total deferred income tax (benefit) (554 ) (39 ) Total income tax (benefit) $ (223 ) $ (26 ) The reconciliation of income tax computed at the federal statutory rate to income before taxes is as follows: Year ended December 31, 2016 2015 U.S. Federal statutory rate (34.0 )% (34.0 )% State taxes net of federal benefit (4.1 ) (4.4 ) Foreign rate differential and transactional tax 1.8 1.2 Impact of foreign tax holiday (0.9 ) 3.4 Valuation allowance 36.6 33.3 Other 0.2 0.5 0.4 % — % Deferred income taxes reflect the net tax effects of the temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income taxes are as follows at December 31: 2016 2015 (in thousands) Deferred tax assets: Allowance for doubtful accounts $ 12 $ 152 Inventory reserves 3,855 3,289 Accrued liabilities 11 382 Warrant interest expense 269 269 Stock compensation expense 2,774 2,478 State net operating loss—net of tax 9,189 7,456 Net operating loss carryforward 50,284 40,417 Tax credits 825 671 Depreciation 4,995 — Valuation allowance (72,199 ) (52,286 ) Total deferred tax assets 15 2,828 Deferred tax liability: Depreciation — (3,320 ) Prepaid expenses (15 ) (62 ) Net deferred tax liability $ — $ (554 ) The Company adopted the guidance in ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In accordance with ASC740 “Accounting for Income Taxes” (“ASC740”), the Company evaluates its deferred income tax assets quarterly to determine if valuation allowances are required or should be adjusted. ASC740 requires that companies assess whether valuation allowances should be established against their deferred tax assets based on consideration of all available evidence, both positive and negative, using a “more likely than not” standard. 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. Based on an evaluation in accordance with the accounting standards, as of December 31, 2016 and 2015, a valuation allowance of $72.2 million and $52.3 million, respectively has been recorded against the net U.S. and Malaysia 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. Until an appropriate level of profitability is attained, the Company expects to maintain a full valuation allowance on its U.S. and Malaysia net deferred tax assets. Any U.S. or Malaysia 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 net deferred tax liabilities at December 31, 2015 are related to tax liabilities that will reverse after the expiration of the Malaysia tax holiday as discussed below. At December 31, 2016, the Company had separate Federal and Illinois net operating loss carryforwards (“NOL”) of $148.1 million and $179.6 million, respectively, which begin to expire in 2021 and 2019, respectively. The Company has not recorded a deferred tax asset for NOL, included in the aforementioned amounts, attributable to stock option exercises in the amount of $21.7 million for federal purposes and $26.4 million for state purposes because the Company cannot record these excess tax benefit stock option deductions until the benefit has been realized by actually reducing taxes payable. Last, the Company has recorded an uncertain tax position of $2.6 million that further reduces the net operating loss deferred tax assets reported in the financial statements. In addition, at December 31, 2016, the Company had Federal and Illinois research and development credits and investment tax credits of $668,000, $68,600 and $174,000, respectively which begin to expire in 2017. Tax credits are accounted for using the flow through method and therefore are taken in the year earned. The Company completed an analysis of the utilization of net operating losses subject to limits based upon certain ownership changes as of December 31, 2016. The results of this analysis indicated no ownership change limiting the utilization of net operating losses and tax credits. The Company prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. At December 31, 2016 and 2015, the Company had unrecognized tax benefits taken or expected to be taken in a tax return that have been recorded on the Company’s financial statements of $1.1 million that are related to tax positions taken in 2012. It is not reasonably possible that the amount will change in the next twelve months. A reconciliation of the beginning and ending balance of the unrecognized tax benefit follows (in thousands): Balance at December 31, 2015 $ 1,141 Decrease related to prior year positions — Tax position related to current year — Balance at December 31, 2016 $ 1,141 There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the years ended December 31, 2016 and 2015. Included in the balance of total unrecognized tax benefits at December 31, 2015, are potential benefits of $1.0 million that if recognized, would affect the effective tax rate in the year recognized. The Company files income tax returns in the United States federal jurisdiction and in a state jurisdiction. During 2009, the Company began foreign operations in Malaysia and Japan and is subject to local income taxes in both jurisdictions. The Company is exempt from Malaysian income tax for a five-year period beginning in 2009 with a five year renewal. Due to the continual decline in prices in the sapphire market, the Company ceased production activities in the Rubicon Sapphire Technology (Malaysia) SDN BHD (“Rubicon Malaysia”) facility effective November 30, 2016. The Company requested the Malaysian government to modify the tax holiday to allow it to extend through 2016 even though the Company did not meet the original requirements. Due to the uncertainty of the modification being granted, at December 31, 2016 the Company recorded a current income tax provision of $42,000 of Malaysia income tax with the expectation that the holiday will not be granted. The impact of this tax holiday decreased foreign taxes for the year ended December 31, 2015 by approximately $147,000 and the benefit on net income per share (diluted) for the year ended December 31, 2015 was $0.01. The Company’s Malaysia tax returns for the periods ended December 31, 2010 through 2012 have been audited by the Malaysia Inland Revenue Board with no changes made to the taxable income for those years. All other tax years in Malaysia are open to examination by tax authorities. The Company’s federal tax returns for the periods ended December 31, 2010, 2008 and 2007 have been audited by the Internal Revenue Service (IRS) with no changes made to the Company’s taxable losses for those years. The Company’s state tax returns for the periods ended December 31, 2009 through 2012 have been audited by the Illinois Department of Revenue with no changes made to the Company’s taxable losses for those years. Due to the existence of net operating loss carryforwards, tax years ended December 31, 2001 through 2006, 2008, 2009 and 2011 through 2015 are open to examination by tax authorities for Federal purposes. Due to net operating loss carryforwards at the State level, tax years ended 2004 through 2006 and 2008 through 2015 are open to examination by state tax authorities. Due to the closing of the Rubicon Malaysia operations, the Company no longer considers the undistributed earnings of Rubicon Malaysia to be indefinitely reinvested. Upon liquidation of Rubicon Malaysia, it is anticipated any cash left after the liquidation will be brought back to the U.S. via a payment of principal towards the intercompany loan. A withholding tax will be payable to the Malaysian government on the interest portion of the loan. At December 31, 2016, the Company accrued the withholding tax on the interest balance of the loan in the amount of $274,000, which represents the incremental tax. |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facility | 9. 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 provided for the Company to borrow up to 80% of eligible accounts receivable and up to 35% of domestically held raw material and finished goods inventory. Advances against inventory were limited to 40% of the aggregate outstanding on the revolving line of credit and $10.0 million in aggregate. The Company had 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 maintained liquidity of $20.0 million or greater with the lending institution, then the borrowing interest rate options were LIBOR plus 2.25% or the Wall Street Journal prime rate. There was an unused revolving line facility fee of 0.375% per annum. The facility was secured by a first priority interest in substantially all of the Company’s personal property, excluding intellectual property. The Company was 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 could pay dividends or repurchase capital stock only with the bank’s consent during the three-year term. In August 2015, the Company entered into an amended agreement with the bank to extend the senior secured facility through January 2, 2018. Under the amended agreement, advances against inventory were limited to the lesser of 45% of the aggregate outstanding principal on the revolving line of credit and $10.0 million and the rate on the facility fee on the unused portion of the revolving line was adjusted to 0.50% per annum. All other terms and conditions remained the same. The agreement contained a subjective acceleration clause and required the Company to maintain a lockbox. As a result, the Company classified the debt as a current liability on its balance sheet. On September 9, 2016, the Company voluntarily terminated the loan agreement. Pursuant to the pay-off pay-off For the years ended December 31, 2016 and 2015, the Company recorded interest expense of $99,000 and $109,000, respectively related to the credit facility which includes $92,000 and $107,000, respectively of interest expense charged on the unused portion of the facility. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases buildings used for manufacturing and offices. The leases provide for payment of the Company’s proportionate share of operating expenses and real estate taxes. Net rent expense under operating leases in 2016 and 2015 amounted to $598,900 and $653,400, respectively. Future minimum payments under all leases are as follows: Year ending December 31, Operating 2017 $ 592 2018 468 2019 145 Balance at December 31, 2016 $ 1,205 Purchase Commitments The Company has entered into agreements for electricity. These agreements will result in the Company purchasing electricity for a total cost of approximately $771,000 with deliveries occurring through December 2017. 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, other than as set forth below, will have a material adverse effect on the financial condition or results of operations of the Company. 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 sought as a remedy either money damages or rescission of the March 2014 offering, plus attorneys’ fees. On October 29, 2015, after mediation and subsequent discussions, the parties reached a settlement agreement in principle. On January 27, 2016, the United States District Court for the Northern District of Illinois granted a motion for preliminary approval of the agreement, and on May 20, 2016, a final judgment and order of dismissal was granted. The settlement included a release of all defendants, and dismissal of the case against all defendants with prejudice. The Company recorded for the year ended December 31, 2015 an expense of $1.1 million of which $900,000 is the amount the Company contributed to the settlement and paid on February 17, 2016. The remaining costs of the settlement were covered by the Company’s insurance carriers. On November 19, 2015, the Carolyn Piper Smithhisler Living Trust, derivatively on behalf of Rubicon Technology Inc., filed a complaint in the Eighteenth Judicial Circuit of Illinois against the Company’s Board of Directors and certain senior officers seeking to remedy alleged breaches of fiduciary duties and other violations of the law, failure to implement an effective system of internal controls, and failure to oversee the public statements made by the Company and certain individual defendants. The complaint sought as a remedy to recover damages against the individual defendants for the benefit of the Company and to require the Company to reform and improve its corporate governance and internal procedures plus attorneys’ fees. After extensive discussions, the parties informed the court on May 2, 2016 that they had reached a settlement agreement in principle. On May 23, 2016, the court issued an order granting preliminary approval of the proposed settlement. On July 11, 2016, plaintiff’s unopposed motion for final approval of stockholder derivative settlement fee and expense amount and service award was filed. On August 1, 2016, the court issued a final judgment approving the settlement and an order of dismissal was granted. The settlement provided for the Company to adopt certain governance changes and to pay certain amounts. The Company’s insurance carriers covered substantially all of the settlement payments and related expenses, including legal fees. |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Benefit Plan | 11. BENEFIT PLAN The Company sponsors a 401(k) savings plan (the “Plan”). Employees are eligible to participate in the Plan upon reaching 18 years of age. Employees make contributions to the Plan through payroll deferrals and employer matching contributions are discretionary. There were no employer matching contributions for the years ended December 31, 2016 and 2015. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 12. QUARTERLY FINANCIAL DATA (Unaudited) Quarterly Financial Data (Unaudited) Summary quarterly results for the two years ended December 31, 2016 are as follows (in thousands, other than share and per share data): Three months ended Full year 2016 March 31 June 30 September 30 December 31 Revenue $ 4,287 $ 3,535 $ 7,086 $ 4,722 $ 19,630 Gross loss $ (5,419 ) $ (4,051 ) $ (11,646 ) $ (4,891 ) $ (26,008 ) Loss from operations $ (8,156 ) $ (8,150 ) $ (24,769 ) $ (21,642 ) $ (62,717 ) Loss before income taxes $ (7,484 ) $ (8,383 ) $ (25,017 ) $ (22,218 ) $ (63,102 ) Net loss $ (7,333 ) $ (8,209 ) $ (24,801 ) $ (22,536 ) $ (62,879 ) Basic and diluted loss per common share $ (0.28 ) $ (0.31 ) $ (0.94 ) $ (0.85 ) $ (2.39 ) Weighted average common shares outstanding used in computing net loss per common share, basic and diluted: 26,226,614 26,296,398 26,374,516 26,527,909 26,356,359 Three months ended Full year 2015 March 31 June 30 September 30 December 31 Revenue $ 8,910 $ 7,106 $ 5,346 $ 2,456 $ 23,818 Gross loss $ (5,109 ) $ (5,155 ) $ (3,891 ) $ (8,988 ) $ (23,143 ) Loss from operations $ (7,948 ) $ (8,322 ) $ (47,370 ) $ (12,309 ) $ (75,949 ) Loss before income taxes $ (8,312 ) $ (8,529 ) $ (48,859 ) $ (12,156 ) $ (77,856 ) Net loss $ (8,348 ) $ (8,580 ) $ (48,196 ) $ (12,706 ) $ (77,830 ) Basic and diluted loss per common share $ (0.32 ) $ (0.33 ) $ (1.84 ) $ (0.49 ) $ (2.98 ) Weighted average common shares outstanding used in computing net loss per common share, basic and diluted: 26,129,276 26,142,261 26,160,308 26,192,838 26,156,170 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of business | Description of business Rubicon Technology, Inc., a Delaware corporation (the “Company”), is a vertically integrated, advanced materials provider specializing in monocrystalline sapphire for applications in optical and industrial systems. The Company sells its products on a global basis to customers in Asia, Australia, North America and Europe. The Company maintains its operating facilities in the Chicago metropolitan area. |
Principles of consolidation | Principles of consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries, Rubicon Worldwide LLC, Rubicon Sapphire Technology (Malaysia) SDN BHD, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea. All intercompany transactions and balances have been eliminated in consolidation. A summary of the Company’s significant accounting policies applied in the preparation of the accompanying Consolidated Financial Statements follows. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all unrestricted highly liquid investments immediately available to be cash equivalents. Cash equivalents primarily consist of time deposits with banks, unsettled trades and brokerage money market accounts. |
Restricted cash | Restricted cash A summary of the Company’s restricted cash at December 31, 2016 and 2015 is as follows: As of December 31, 2016 2015 (in thousands) Certificates of deposit $ 5 $ 5 Flexible spending funds 2 2 Fixed deposit pledge 156 163 $ 163 $ 170 |
Foreign currency translation and transactions | Foreign currency translation and transactions Rubicon Worldwide LLC, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea’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, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea are recorded as a separate component of accumulated other comprehensive income (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 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 income (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, FDIC guaranteed certificates of deposit, common stock, corporate notes and government securities. Investments classified as available-for-sale The Company reviews its available-for-sale |
Treasury stock | Treasury stock The Company records treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. |
Accounts receivable | Accounts receivable The majority of the Company’s accounts receivable is due from manufacturers serving the light-emitting diodes (“LED”) and optical systems and specialty 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 a customer’s account is 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 such write-offs, net of payments received, are recorded as a reduction to bad debt expense. The following table shows the activity of the allowance for doubtful accounts: Year ended December 31, 2016 2015 (in thousands) Beginning balance $ 389 $ 140 Charges to costs and expenses (235 ) 235 Accounts write offs, less recoveries (123 ) 14 Ending balance $ 31 $ 389 |
Inventories | Inventories Inventories are valued at the lower of cost or market. Raw materials cost is determined using the first-in, first-out work-in-process 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. At times in 2016 and 2015, the Company has accepted sales orders for core and wafer products at prices lower than cost. Based on these sales prices, the Company has recorded for the years ended December 31, 2016 and 2015, a lower of cost or market adjustment which reduced inventory and increased cost of goods sold by $1.1 million and $3.9 million, respectively. The continual decline of prices and worldwide over supply of material has significantly limited the sales of the Company’s two-inch two-inch two-inch With the decision to exit the LED market, the discontinuation of polished and patterned wafer production will result in a significant decrease in crystal growth production and thus impact the amount of raw material needed for future production. Accordingly, raw material in excess of the amount needed for future production has been written down and for the year ended December 31, 2016, an excess and obsolete adjustment was recorded which reduced inventory and increased cost of goods sold by $4.0 million. Inventories are composed of the following: As of December 31, 2016 2015 (in thousands) Raw materials $ 3,112 $ 7,346 Work-in-process 4,251 9,920 Finished goods 637 4,067 $ 8,000 $ 21,333 |
Other inventory supplies | Other inventory supplies The Company’s other inventory supplies include stock of consumable and spare parts used in the manufacturing process. With the decision to focus on optical and industrial products, the Company determined it had consumable parts stock that was obsolete and recorded for the year ended December 31, 2016 a consumable stock write-down of $3.2 million. |
Property and equipment | Property and equipment Property and equipment consisted of the following: As of December 31, 2016 2015 (in thousands) Land and land improvements $ — $ 4,133 Buildings — 26,097 Machinery, equipment and tooling 17,769 50,364 Leasehold improvements 4,624 7,141 Information systems 991 1,105 Furniture and fixtures 699 816 Construction in progress 263 1,327 Total cost 24,346 90,983 Accumulated depreciation and amortization (17,236 ) (33,414 ) Property and equipment, net $ 7,110 $ 57,569 Property and equipment are carried at cost and depreciated over their estimated useful lives using the straight-line method. The cost of maintenance and repairs is charged to expense as incurred. Significant renewals and improvements are capitalized. Depreciation and amortization expense associated with property and equipment was $6.1 million and $11.4 million for the years ended December 31, 2016 and 2015, respectively. Construction in progress includes costs associated with the construction of furnaces and deposits made on equipment purchases. The estimated useful lives are as follows: Asset description Life Buildings 39 years Machinery, equipment and tooling 3-10 years Leasehold improvements Lesser of life of lease or economic life Furniture and fixtures 7 years Information systems 3 years |
Other assets | Other assets The Company’s other assets include overhaul costs that are accounted for using the deferral method. These overhaul costs are recorded at cost on the balance sheet as other assets and are amortized over terms in accordance with their respectful useful lives. |
Warranty cost | Warranty cost The Company’s sales terms include a warranty that its products will meet certain specifications. The Company records a current liability for the expected cost of warranty-related claims at the time of sale. The warranty reserve is included in accrued and other current liabilities on the Consolidated Balance Sheets. The following table presents changes in the Company’s product warranty liability: Year ended 2016 2015 (in thousands) Balance, beginning of period $ 73 $ 97 Charged to cost of sales (1 ) 90 Actual product warranty expenditures (45 ) (114 ) Balance, end of period $ 27 $ 73 |
Fair value of financial instruments | Fair value of financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, accounts receivable, and accounts payable. The carrying values of these assets and liabilities approximate their fair values due to the short-term nature of these instruments at December 31, 2016 and 2015. |
Concentration of credit risks and other risks and uncertainties | Concentration of credit risks and other risks and uncertainties Financial instruments that could potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. At December 31, 2016 and 2015, the Company had $525,000 and $419,000, respectively, on deposit at foreign financial institutions. At December 31, 2016 and 2015, the Company had $6.0 million and $2.9 million, respectively, on deposit at financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation and other foreign governmental insurance agencies. The Company performs a periodic evaluation of these institutions for relative credit standing. The Company has not experienced any losses in such accounts and management believes it is not exposed to any significant risk of loss on these balances. The Company currently depends on a small number of suppliers for certain raw materials, components, services and equipment, including key materials such as aluminum oxide powder and certain furnace components. If the supply of these components were to be disrupted or terminated, or if these suppliers were unable to supply the quantities of raw materials required, the Company may have difficulty in finding, or may be unable to find, alternative sources for these items. The Company also uses third parties for certain finishing functions for its products, including the slicing and polishing of its sapphire crystal inventory. These types of services are only available from a limited number of third parties. The Company’s ability to successfully outsource these finishing functions will substantially depend on its ability to develop, maintain and expand its strategic relationship with these third parties. As a result, the Company may be unable to meet the demand for its products, which could have a material adverse impact on the Company. Concentration of credit risk related to revenue and accounts receivable is discussed in Note 4. |
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 • Title has passed and the product has been delivered. • The price is fixed or determinable • Collection of the resulting receivable is reasonably assured. 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 (the LANCE government contract) to produce large-area sapphire windows on a cost plus fixed fee basis. The Company records revenue on a gross basis as costs are incurred plus a portion of the fixed fee. For the years ended December 31, 2016 and 2015, $289,000 and $661,000, respectively, of revenue were recorded. At December 31, 2016, the estimated costs to complete the contract were in excess of the contract value. For the year ended December 31, 2016, the Company accrued $217,000 for the estimated costs of completion. To date, the Company has recorded $4.3 million in revenue and the total value of the contract is $4.7 million. The Company does not provide maintenance or other services and it does not have sales that involve multiple elements or deliverables. |
Shipping and handling costs | Shipping and handling costs The Company records costs incurred in connection with shipping and handling of products as cost of goods sold. Amounts billed to customers in connection with these costs are included in revenue and are not material for any of the periods presented in the accompanying financial statements. |
Sales tax | Sales tax The Company collects and remits sales taxes on products sold to customers and reports such amounts under the net method in its Consolidated Statements of Operations and records a liability until remitted to the respective tax authority. |
Stock-based compensation | Stock-based compensation The Company requires all share-based payments to employees, including grants of employee stock options to be measured at fair value and expensed in the Consolidated Statements of Operations over the service period (generally the vesting period) of the grant. Expense is recognized in the Consolidated Statements of Operations for these share-based payments. |
Research and development | Research and development Research and development costs are expensed as incurred. Research and development expense was $2.5 million and $2.2 million for the years ended December 31, 2016 and 2015, respectively. |
Accounting for uncertainty in income taxes | Accounting for uncertainty in income taxes The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the years ended December 31, 2016 and 2015. The Company is subject to taxation in the U.S., Japan and in a state jurisdiction. The Company is exempt from Malaysian income tax for a five year period beginning in 2009 with a five year renewal. As of the December 31, 2016, the Company requested the Malaysian government to modify the tax holiday to allow it to extend through 2016 even though the Company did not meet the original requirements. Due to the uncertainty of the modification being granted, at December 31, 2016 the Company recorded a current income tax provision for Malaysia income taxes with the expectation that the holiday will not be granted. Due to the existence of net operating loss carryforwards, tax years ended December 31, 2001 through 2006, 2008, 2009 and 2011 through 2015 are open to examination by tax authorities for Federal purposes. Due to net operating loss carryforwards at the State level, tax years ended 2004 through 2006 and 2008 through 2015 are open to examination by state tax authorities. Tax years 2013 through 2015 are open to examination by tax authorities in Malaysia. |
Income taxes | Income taxes Deferred tax assets and liabilities are provided for temporary differences between financial reporting and income tax bases of assets and liabilities, and are measured using the enacted tax rates and laws expected to be in effect when the differences will reverse. Deferred income taxes also arise from the future benefits of net operating loss carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Full valuation allowances on net deferred tax assets are maintained until an appropriate level of profitability that generates taxable income is deemed sustainable or until a tax strategy is developed that would enable the Company to conclude that it is more likely than not that a portion of the deferred tax assets will be realizable. Based on an evaluation in accordance with the accounting standards, as of December 31, 2016 and 2015, a valuation allowance has been recorded against the net U.S. and Malaysia 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. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
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 non-owner Year Ended December 31, 2016 2015 (in thousands) Reclassification of unrealized gain included in net loss $ — $ — Unrealized loss on investments, net of tax (12 ) (17 ) Unrealized loss on currency translation (18 ) (16 ) Ending balance $ (30 ) $ (33 ) |
Net loss per common share | Net loss per common share Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of diluted common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted shares outstanding any common stock equivalents, outstanding stock options and warrants based on the treasury stock method. Diluted net loss per common share is the same as basic net loss per common share for the years ended December 31, 2016 and 2015 because the effects of potentially dilutive securities are anti-dilutive. As of December 31, 2016 and 2015, diluted shares outstanding were the same as basic shares outstanding. |
New accounting pronouncements adopted | New accounting pronouncements adopted In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15 2014-15”), Presentation of Financial Statements—Going Concern (Subtopic 205-40): 2014-15 2014-15, |
Recent accounting pronouncements | Recent accounting pronouncements In July 2015, the FASB issued ASU No. 2015-11 2015-11”), Inventory (Topic 330): Simplifying the Measurement of Inventory in-scope 2015-11 2015-11 In January 2016, the FASB issued ASU No. 2016-01 2016-01”), Financial Instruments—Overall (Subtopic 825-10): 2016-01 In February 2016, the FASB issued ASU No. 2016-02 2016-02”), Leases (Topic 842) 2016-02 2016-02 2016-02 In March 2016, the FASB issued ASU No. 2016-09 2016-09”), Compensation—Stock Compensation Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09 2016-09 In April 2016, the FASB issued ASU No. 2016-10 (“ASU 2016-10”), Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. No. 2014-09, 2014-09”), Revenue from Contracts with Customers (Topic 606), No. 2016-12, (“ASU 2016-12”), 2014-09. In August 2016, the FASB issued ASU No. 2016-15 2016-15”), Statement of Cash Flows (Topic230): Classification of Certain Cash Receipts and Cash Payments 2016-15 2016-15 In January 2017, the FASB issued ASU No. 2017-01 2017-01”), 2017-01 2017-01 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Company's Restricted Cash | A summary of the Company’s restricted cash at December 31, 2016 and 2015 is as follows: As of December 31, 2016 2015 (in thousands) Certificates of deposit $ 5 $ 5 Flexible spending funds 2 2 Fixed deposit pledge 156 163 $ 163 $ 170 |
Activity of Allowance for Doubtful Accounts | The following table shows the activity of the allowance for doubtful accounts: Year ended December 31, 2016 2015 (in thousands) Beginning balance $ 389 $ 140 Charges to costs and expenses (235 ) 235 Accounts write offs, less recoveries (123 ) 14 Ending balance $ 31 $ 389 |
Inventories | Inventories are composed of the following: As of December 31, 2016 2015 (in thousands) Raw materials $ 3,112 $ 7,346 Work-in-process 4,251 9,920 Finished goods 637 4,067 $ 8,000 $ 21,333 |
Property and Equipment | Property and equipment consisted of the following: As of December 31, 2016 2015 (in thousands) Land and land improvements $ — $ 4,133 Buildings — 26,097 Machinery, equipment and tooling 17,769 50,364 Leasehold improvements 4,624 7,141 Information systems 991 1,105 Furniture and fixtures 699 816 Construction in progress 263 1,327 Total cost 24,346 90,983 Accumulated depreciation and amortization (17,236 ) (33,414 ) Property and equipment, net $ 7,110 $ 57,569 |
Property and Equipment, Estimated Useful Lives | The estimated useful lives are as follows: Asset description Life Buildings 39 years Machinery, equipment and tooling 3-10 years Leasehold improvements Lesser of life of lease or economic life Furniture and fixtures 7 years Information systems 3 years |
Product Warranty Liability | The following table presents changes in the Company’s product warranty liability: Year ended 2016 2015 (in thousands) Balance, beginning of period $ 73 $ 97 Charged to cost of sales (1 ) 90 Actual product warranty expenditures (45 ) (114 ) Balance, end of period $ 27 $ 73 |
Components of Comprehensive Loss | A summary of the components of comprehensive loss for the years ended December 31, 2016 and 2015 follows: Year Ended December 31, 2016 2015 (in thousands) Reclassification of unrealized gain included in net loss $ — $ — Unrealized loss on investments, net of tax (12 ) (17 ) Unrealized loss on currency translation (18 ) (16 ) Ending balance $ (30 ) $ (33 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | The following table summarizes revenue by geographic region: Year Ended December 31, 2016 2015 (in thousands) Germany $ 8,945 $ 3,718 United States 3,364 4,894 Malaysia 2,880 — Korea 1,486 3,646 Canada 876 522 Taiwan 847 3,490 Australia 509 913 Israel 398 785 China 222 5,499 Other 103 351 Total revenue $ 19,630 $ 23,818 |
Summary of Sales by Product Type | The following table summarizes sales by product type: Year Ended December 31, 2016 2015 (in thousands) Wafer $ 13,121 $ 6,627 Optical 4,568 5,086 Core 1,652 11,444 Research & development 289 661 Total revenue $ 19,630 $ 23,818 |
Summary of Assets by Geographic Region | The following table summarizes assets by geographic region: As of December 31, 2016 2015 (in thousands) United States $ 47,171 $ 88,916 Malaysia 5,811 30,276 Other 31 50 Total assets $ 53,013 $ 119,242 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2015: Amortized Cost Gross Gross Fair (in thousands) Short-term investments: FDIC guaranteed certificates of deposit $ 1,920 $ — $ — $ 1,920 Corporate notes/bonds 6,980 — 5 6,975 Total short-term investments $ 8,900 $ — $ 5 $ 8,895 |
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 December 31, 2016: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 10,949 $ — $ — $ 10,949 Investments: Available-for-sales FDIC guaranteed certificates of deposit — — — — Corporate notes/bonds — — — — Total $ 10,949 $ — $ — $ 10,949 The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2015: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 17,702 $ — $ — $ 17,702 Investments: Available-for-sales FDIC guaranteed certificates of deposit — 1,920 — 1,920 Corporate notes/bonds — 6,975 — 6,975 Total $ 17,702 $ 8,895 $ — $ 26,597 |
Asset Impairment Charges (Table
Asset Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Fair Value Non-Financial Assets Measured and Recorded on a Non-Recurring Basis | The table below summarizes the non-financial non-recurring Carrying Quoted Significant Significant Loss for (in thousands) Long lived assets held and used $ 7,110 $ — $ 7,110 $ — $ 12,264 Long lived assets held for sale 14,761 — 14,761 — 14,290 Total nonrecurring for value measurements $ 21,871 $ — $ 21,871 $ — $ 26,554 The table below summarizes the non-financial non-recurring Carrying Quoted Significant Significant Loss for (in thousands) Long lived assets held and used $ 57,569 $ — $ 57,569 $ — $ 39,597 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Activity of Stock Incentive and Equity Plans | The following table summarizes the activity of the stock incentive and equity plans: Shares Number of Weighted- Number of Number of Outstanding at January 1, 2015 1,772,529 2,238,286 $ 10.31 140,653 134,731 Granted (1,457,826 ) 992,684 1.40 60,802 404,340 Exercised — (5,692 ) 0.78 — (29,432 ) Canceled/forfeited 417,567 (373,710 ) 10.02 — (55,618 ) Outstanding at December 31, 2015 732,270 2,851,568 7.07 201,455 454,021 Authorized 1,900,000 Granted (1,537,692 ) 943,620 0.63 594,072 — Exercised/issued — — — — (133,685 ) Canceled/forfeited 1,337,606 (1,259,783 ) 8.96 (30,701 ) (194,497 ) Outstanding at December 31, 2016 2,432,184 2,535,405 $ 3.73 764,826 125,839 |
Intrinsic Value Calculated Based on Grant Date Fair Value | The following table sets forth option grants made during 2016 and 2015 with intrinsic value calculated based on grant date fair value. Date of grant Number of Exercise Intrinsic March – July 2015 92,600 $ 2.43 - $4.04 — September – December 2015 900,084 $ 1.00 - $1.35 — January – April 2016 51,120 $ 0.73 - $1.14 — September 2016 892,500 $ 0.61 — |
Exercise Prices of Outstanding Options | At December 31, 2016, the exercise prices of outstanding options were as follows: Exercise price Number of Average Number of $ 0.61 - $ 0.73 874,250 9.74 — $ 1.00 - $ 1.35 725,019 8.86 196,438 $ 2.43 - $ 5.20 548,439 5.90 467,564 $ 6.11 - $12.16 206,692 2.89 200,567 $15.00 - $19.49 132,476 2.85 132,476 $20.20 - $32.67 48,529 3.76 48,529 2,535,405 7.62 1,045,574 |
Summary of Non-vested Options | The following table summarizes the activity of non-vested Non-vested Weighted- Non-vested 628,733 $ 5.93 Granted 992,684 1.40 Vested (200,402 ) 6.64 Cancelled (169,054 ) 5.86 Non-vested 1,251,961 2.23 Granted 943,620 0.63 Vested (330,115 ) 2.81 Cancelled (375,635 ) 2.51 Non-vested 1,489,831 $ 1.02 |
Schedule for Estimated Fair Value at Date of Option Grant Using Black Scholes Option Pricing Model | For the years ended December 31, 2016 and 2015, the assumptions used for the estimated fair value at the date of option grant using the Black-Scholes option-pricing model were as follows: 2016 2015 Weighted average fair value per share of option $0.63 $1.40 Expected term 5.1 years 5.5 years Risk free interest rate 1.24% - 1.73% 1.41% - 1.70% Volatility 65% 65% Dividend yield None None Forfeiture rate 23.1% 18.56% |
Restricted Stock Units [Member] | |
Analysis of Restricted Stock Units Issued | A summary of the Company’s RSUs is as follows: RSUs Weighted average price at Aggregate intrinsic Non-vested 134,731 $ 5.41 Granted 404,340 1.48 Vested (29,432 ) 5.44 Cancelled (55,618 ) 5.37 Non-vested 454,021 1.92 Granted — — Vested (133,685 ) 1.60 Cancelled (194,497 ) 2.35 Non-vested 125,839 $ 1.60 $ 75,503 |
Restricted Stock [Member] | |
Analysis of Restricted Stock Units Issued | An analysis of restricted stock issued is as follows: Non-vested 12,207 Granted 60,802 Vested (57,809 ) Non-vested 15,200 Granted 594,072 Vested (413,870 ) Cancelled/Forfeited (30,701 ) Non-vested 164,701 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
(Loss) before income taxes | (Loss) before income taxes Year ended December 31, 2016 2015 (in thousands) U.S. $ (50,689 ) $ (67,254 ) Foreign (12,413 ) (10,602 ) Total $ (63,102 ) $ (77,856 ) |
Income Tax Expense (Benefit) | Income taxes Year ended December 31, 2016 2015 (in thousands) Current U.S. $ — $ — State — — Foreign 331 13 Total current income tax expense 331 13 Deferred U.S. — — State — — Foreign (554 ) (39 ) Total deferred income tax (benefit) (554 ) (39 ) Total income tax (benefit) $ (223 ) $ (26 ) |
Reconciliation of Income Tax Computed at Federal Statutory Rate to Income Before Taxes | The reconciliation of income tax computed at the federal statutory rate to income before taxes is as follows: Year ended December 31, 2016 2015 U.S. Federal statutory rate (34.0 )% (34.0 )% State taxes net of federal benefit (4.1 ) (4.4 ) Foreign rate differential and transactional tax 1.8 1.2 Impact of foreign tax holiday (0.9 ) 3.4 Valuation allowance 36.6 33.3 Other 0.2 0.5 0.4 % — % |
Significant Components of Net Deferred Income Taxes | Significant components of the Company’s net deferred income taxes are as follows at December 31: 2016 2015 (in thousands) Deferred tax assets: Allowance for doubtful accounts $ 12 $ 152 Inventory reserves 3,855 3,289 Accrued liabilities 11 382 Warrant interest expense 269 269 Stock compensation expense 2,774 2,478 State net operating loss—net of tax 9,189 7,456 Net operating loss carryforward 50,284 40,417 Tax credits 825 671 Depreciation 4,995 — Valuation allowance (72,199 ) (52,286 ) Total deferred tax assets 15 2,828 Deferred tax liability: Depreciation — (3,320 ) Prepaid expenses (15 ) (62 ) Net deferred tax liability $ — $ (554 ) |
Reconciliation of Unrecognized Tax Benefit | A reconciliation of the beginning and ending balance of the unrecognized tax benefit follows (in thousands): Balance at December 31, 2015 $ 1,141 Decrease related to prior year positions — Tax position related to current year — Balance at December 31, 2016 $ 1,141 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments Under all Leases | Future minimum payments under all leases are as follows: Year ending December 31, Operating 2017 $ 592 2018 468 2019 145 Balance at December 31, 2016 $ 1,205 |
Quarterly Financial Data (Una28
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results | Summary quarterly results for the two years ended December 31, 2016 are as follows (in thousands, other than share and per share data): Three months ended Full year 2016 March 31 June 30 September 30 December 31 Revenue $ 4,287 $ 3,535 $ 7,086 $ 4,722 $ 19,630 Gross loss $ (5,419 ) $ (4,051 ) $ (11,646 ) $ (4,891 ) $ (26,008 ) Loss from operations $ (8,156 ) $ (8,150 ) $ (24,769 ) $ (21,642 ) $ (62,717 ) Loss before income taxes $ (7,484 ) $ (8,383 ) $ (25,017 ) $ (22,218 ) $ (63,102 ) Net loss $ (7,333 ) $ (8,209 ) $ (24,801 ) $ (22,536 ) $ (62,879 ) Basic and diluted loss per common share $ (0.28 ) $ (0.31 ) $ (0.94 ) $ (0.85 ) $ (2.39 ) Weighted average common shares outstanding used in computing net loss per common share, basic and diluted: 26,226,614 26,296,398 26,374,516 26,527,909 26,356,359 Three months ended Full year 2015 March 31 June 30 September 30 December 31 Revenue $ 8,910 $ 7,106 $ 5,346 $ 2,456 $ 23,818 Gross loss $ (5,109 ) $ (5,155 ) $ (3,891 ) $ (8,988 ) $ (23,143 ) Loss from operations $ (7,948 ) $ (8,322 ) $ (47,370 ) $ (12,309 ) $ (75,949 ) Loss before income taxes $ (8,312 ) $ (8,529 ) $ (48,859 ) $ (12,156 ) $ (77,856 ) Net loss $ (8,348 ) $ (8,580 ) $ (48,196 ) $ (12,706 ) $ (77,830 ) Basic and diluted loss per common share $ (0.32 ) $ (0.33 ) $ (1.84 ) $ (0.49 ) $ (2.98 ) Weighted average common shares outstanding used in computing net loss per common share, basic and diluted: 26,129,276 26,142,261 26,160,308 26,192,838 26,156,170 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Summary of Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 163 | $ 170 |
Certificates of Deposit [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 5 | 5 |
Flexible Spending Funds [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 2 | 2 |
Fixed Deposit Pledge [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 156 | $ 163 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Impairment of investments | $ 0 | $ 0 |
Based on these sales prices reduced inventory and increased cost of goods sold | 1,100,000 | 3,900,000 |
Based on excess and obsolete adjustment, reduced inventory and increased cost of goods sold | 2,300,000 | |
Depreciation and amortization expense associated with property and equipment | 6,100,000 | 11,404,000 |
Deposit at a foreign financial institution | 525,000 | 419,000 |
Deposit at a financial institution | 6,000,000 | 2,900,000 |
Revenue recorded from government contract | 289,000 | 661,000 |
Total value of the contract | 4,700,000 | |
Value of contract recorded | 4,300,000 | |
Estimated cost for completion | 217,000 | |
Research and development costs | $ 2,550,000 | 2,210,000 |
Income tax benefit recognition criteria percentage threshold | 50.00% | |
Interest or penalties related to income taxes accrued or recognized | $ 0 | $ 0 |
Period of exemption from Malaysian income tax | 5 years | |
Renewal period of exemption from Malaysian income tax | 5 years | |
Consumables [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Consumable Write Down | $ 3,200,000 | |
Discontinuation from LED Market [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Based on excess and obsolete adjustment, reduced inventory and increased cost of goods sold | $ 4,000,000 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Activity of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning balance | $ 389 | $ 140 |
Charges to costs and expenses | (235) | 235 |
Accounts write offs, less recoveries | (123) | 14 |
Ending balance | $ 31 | $ 389 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Raw materials | $ 3,112 | $ 7,346 |
Work-in-process | 4,251 | 9,920 |
Finished goods | 637 | 4,067 |
Inventories | $ 8,000 | $ 21,333 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 24,346 | $ 90,983 |
Accumulated depreciation and amortization | (17,236) | (33,414) |
Property and equipment, net | 7,110 | 57,569 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 4,133 | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 26,097 | |
Machinery, Equipment and Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 17,769 | 50,364 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 4,624 | 7,141 |
Information Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 991 | 1,105 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 699 | 816 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 263 | $ 1,327 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Property and Equipment, Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | Lesser of life of lease or economic life |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Information Systems [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Minimum [Member] | Machinery, Equipment and Tooling [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | Machinery, Equipment and Tooling [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Product Warranty Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||
Balance, beginning of period | $ 73 | $ 97 |
Charged to cost of sales | (1) | 90 |
Actual product warranty expenditures | (45) | (114) |
Balance, end of period | $ 27 | $ 73 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Components of Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Reclassification of unrealized gain included in net loss | $ 0 | $ 0 |
Unrealized loss on investments, net of tax | (12) | (17) |
Unrealized loss on currency translation | (18) | (16) |
Ending balance | $ (30) | $ (33) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Segment Information - Summary o
Segment Information - Summary of Revenue by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | $ 4,722 | $ 7,086 | $ 3,535 | $ 4,287 | $ 2,456 | $ 5,346 | $ 7,106 | $ 8,910 | $ 19,630 | $ 23,818 |
Germany [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | 8,945 | 3,718 | ||||||||
United States [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | 3,364 | 4,894 | ||||||||
Malaysia [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | 2,880 | |||||||||
Korea [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | 1,486 | 3,646 | ||||||||
Canada [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | 876 | 522 | ||||||||
Taiwan [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | 847 | 3,490 | ||||||||
Australia [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | 509 | 913 | ||||||||
Israel [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | 398 | 785 | ||||||||
China [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | 222 | 5,499 | ||||||||
Other [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Total revenue | $ 103 | $ 351 |
Segment Information - Summary39
Segment Information - Summary of Revenue by Product Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Product Information [Line Items] | ||||||||||
Total revenue | $ 4,722 | $ 7,086 | $ 3,535 | $ 4,287 | $ 2,456 | $ 5,346 | $ 7,106 | $ 8,910 | $ 19,630 | $ 23,818 |
Wafer [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total revenue | 13,121 | 6,627 | ||||||||
Optical [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total revenue | 4,568 | 5,086 | ||||||||
Core [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total revenue | 1,652 | 11,444 | ||||||||
Research & Development [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total revenue | $ 289 | $ 661 |
Segment Information - Summary40
Segment Information - Summary of Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 53,013 | $ 119,242 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 47,171 | 88,916 |
Malaysia [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 5,811 | 30,276 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 31 | $ 50 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Short-term investments | $ 0 | $ 8,895,000 |
Time deposits of cash and cash equivalents | $ 6,700,000 | $ 3,500,000 |
Investments - Amortized Cost an
Investments - Amortized Cost and Gross Unrealized Gains and Losses on All Securities (Detail) - Short-term Investments [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $ 8,900 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 5 |
Fair Value | 8,895 |
FDIC Guaranteed Certificates of Deposit [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,920 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 0 |
Fair Value | 1,920 |
Corporate Notes/Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 6,980 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 5 |
Fair Value | $ 6,975 |
Investments - Summarized Financ
Investments - Summarized Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | $ 10,949 | $ 26,597 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 10,949 | 17,702 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 8,895 | |
Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents | 10,949 | 17,702 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents | $ 10,949 | 17,702 |
FDIC Guaranteed Certificates of Deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 1,920 | |
FDIC Guaranteed Certificates of Deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 1,920 | |
Corporate Notes/Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 6,975 | |
Corporate Notes/Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | $ 6,975 |
Significant Customers - Additio
Significant Customers - Additional Information (Detail) - Customer | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | ||
Number of significant customer | 1 | 2 |
Trade receivables | 10.00% | |
Accounts receivable | 75.00% | 48.00% |
Customer One [Member] | Customer Concentration Risk [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue | 60.00% | 16.00% |
Customer Two [Member] | Customer Concentration Risk [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue | 15.00% |
Asset Impairment Charges - Addi
Asset Impairment Charges - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)ft² | Dec. 31, 2015USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset impairment charges | $ 26,554 | $ 39,597 |
Assets held for sale | 14,761 | |
U.S. and Malaysia [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset impairment charges | $ 12,300 | $ 39,600 |
Batavia Illinois [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Area of land | ft² | 134,400 | |
Penang [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Area of land | ft² | 65,000 | |
Batavia and Penang [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset Impairment Charges | $ 14,300 |
Asset Impairment Charges - Sche
Asset Impairment Charges - Schedule of Fair Value Non-Financial Assets Measured and Recorded on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long lived assets held and used, Carrying value | $ 7,110 | $ 57,569 |
Long lived assets held for sale, Carrying value | 14,761 | |
Total assets | 53,013 | 119,242 |
Long lived assets held and used | 26,554 | 39,597 |
Non-Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long lived assets held and used, Carrying value | 7,110 | 57,569 |
Long lived assets held for sale, Carrying value | 14,761 | |
Total assets | 21,871 | |
Long lived assets held and used | 12,264 | 39,597 |
Long lived assets held for sale | 14,290 | |
Total nonrecurring for value measurements | 26,554 | |
Significant Other Observable Inputs (Level 2) [Member] | Non-Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long lived assets held and used | 7,110 | $ 57,569 |
Long lived assets held for sale | 14,761 | |
Total nonrecurring for value measurements | $ 21,871 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | ||
Common stock reserved for issuance upon exercise of outstanding common stock options and vesting of restricted stock units | 2,661,244 | |
Common stock reserved for future grants of stock options and restricted stock units | 2,432,184 | |
Common stock reserved for future exercise of outstanding warrants | 24,380 | |
Outstanding warrants to purchase common stock | 24,380 | |
Outstanding warrants to purchase common stock at exercise price per share | $ 3.65 | |
Warrants exercisable date of issuance | 10 years | |
Repurchase of company shares | 0 | |
Restricted Stock [Member] | ||
Class of Stock [Line Items] | ||
Disposition of restricted stock previously granted to director | 33,476 | |
Disposition of restricted stock previously granted to director current fair market value | $ 21,093 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Detail) - USD ($) | Jun. 24, 2016 | Aug. 02, 2011 | Sep. 30, 2016 | Mar. 31, 2011 | Apr. 30, 2016 | Jul. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Weighted average grant date fair value of the options vested | $ 928,000 | $ 1,300,000 | |||||||||
Intrinsic value of options outstanding | 0 | 0 | |||||||||
Intrinsic value of options exercisable | 0 | 0 | |||||||||
Stock compensation expense | 527,000 | $ 731,000 | |||||||||
Unrecognized compensation expense related to non vested awards | $ 780,000 | ||||||||||
Stock-based plan expect to recognize weighted-average period | 2 years 10 months 10 days | ||||||||||
Restrict shares, cancelled | 30,701 | ||||||||||
Stock options, cancelled | 1,259,783 | 373,710 | |||||||||
Stock options to purchase shares of common stock granted | 892,500 | 51,120 | 900,084 | 92,600 | 943,620 | 992,684 | |||||
Exercise price | $ 0.63 | $ 1.40 | |||||||||
Board of Directors Chairman [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restrict shares, cancelled | 20,911 | ||||||||||
Stock options, cancelled | 31,274 | ||||||||||
Stock options to purchase shares of common stock granted | 70,365 | ||||||||||
Exercise price | $ 7.97 | ||||||||||
Restricted Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock compensation expense | $ 559,000 | $ 295,000 | |||||||||
Restricted Stock [Member] | Board of Directors Chairman [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options to purchase shares of common stock granted | 47,050 | ||||||||||
Restricted Stock Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized compensation expense related to non vested awards | $ 168,000 | ||||||||||
Stock-based plan expect to recognize weighted-average period | 1 year 6 months 11 days | ||||||||||
Stock compensation expense | $ 262,000 | $ 224,000 | |||||||||
2001 Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Maximum number of shares awarded or sold | 1,449,667 | ||||||||||
Number of share of common stock purchased | 1 | ||||||||||
Plan expiration date | Aug. 2, 2011 | ||||||||||
2016 Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Plan expiration date | Mar. 17, 2026 | ||||||||||
Common stock reserved for future issuance of awards | 2,229,803 | ||||||||||
2007 Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Maximum number of shares awarded or sold | 4,407,692 | ||||||||||
Plan expiration date | Jun. 24, 2016 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Activity of Stock Incentive and Equity Plans (Detail) - $ / shares | 1 Months Ended | 4 Months Ended | 5 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Apr. 30, 2016 | Jul. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares available for grant | ||||||
Shares available for grant, Beginning balance | 732,270 | 732,270 | 1,772,529 | |||
Shares available for grant, Authorized | 1,900,000 | |||||
Shares available for grant, Granted | (1,537,692) | (1,457,826) | ||||
Shares available for grant, Exercised/issued | 0 | 0 | ||||
Shares available for grant, Canceled/forfeited | 1,337,606 | 417,567 | ||||
Shares available for grant, Ending balance | 2,432,184 | 732,270 | ||||
Number of options outstanding | ||||||
Number of options outstanding, Beginning balance | 2,851,568 | 2,851,568 | 2,238,286 | |||
Number of options outstanding, Granted | 892,500 | 51,120 | 900,084 | 92,600 | 943,620 | 992,684 |
Number of options outstanding, Exercised/issued | (5,692) | |||||
Number of options outstanding, Canceled/forfeited | (1,259,783) | (373,710) | ||||
Number of options outstanding, Ending balance | 2,535,405 | 2,851,568 | ||||
Weighted - average option exercise price | ||||||
Weighted - average option exercise price, Beginning balance | $ 7.07 | $ 7.07 | $ 10.31 | |||
Weighted - average option exercise price, Granted | 0.63 | 1.40 | ||||
Weighted - average option exercise price, Exercised/issued | 0.78 | |||||
Weighted - average option exercise price, Canceled/forfeited | 8.96 | 10.02 | ||||
Weighted - average option exercise price, Ending balance | $ 3.73 | $ 7.07 | ||||
Number of restricted stock and board shares issued | ||||||
Number of restricted stock shares issued, Beginning balance | 201,455 | 201,455 | 140,653 | |||
Number of restricted stock shares issued, Granted | 594,072 | 60,802 | ||||
Number of restricted stock shares issued, Exercised/issued | 0 | 0 | ||||
Number of restricted stock shares issued, Canceled/forfeited | (30,701) | |||||
Number of restricted stock shares issued, Ending balance | 764,826 | 201,455 | ||||
Restricted Stock Units [Member] | ||||||
Number of restricted stock units outstanding | ||||||
Number of restricted stock units outstanding, Beginning balance | 454,021 | 454,021 | 134,731 | |||
Number of restricted stock units outstanding, Granted | 404,340 | |||||
Number of restricted stock units outstanding, Exercised/issued | (133,685) | (29,432) | ||||
Number of restricted stock units outstanding, Canceled/forfeited | (194,497) | (55,618) | ||||
Number of restricted stock units outstanding, Ending balance | 125,839 | 454,021 |
Stock Incentive Plans - Intrins
Stock Incentive Plans - Intrinsic Value Calculated Based on Grant Date Fair Value (Detail) - $ / shares | 1 Months Ended | 4 Months Ended | 5 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Apr. 30, 2016 | Jul. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||
Number of options granted | 892,500 | 51,120 | 900,084 | 92,600 | 943,620 | 992,684 |
Intrinsic value calculated based on grant date fair value, Exercise price | $ 0.73 | $ 1 | $ 2.43 | |||
Intrinsic value calculated based on grant date fair value, Exercise price | $ 0.61 | 1.14 | 1.35 | 4.04 | ||
Intrinsic value calculated based on grant date fair value, Intrinsic value per share |
Stock Incentive Plans - Exercis
Stock Incentive Plans - Exercise Prices of Outstanding Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices of outstanding options, Number of options outstanding | 2,535,405 | 2,851,568 | 2,238,286 |
Exercise prices of outstanding options, Average remaining contractual life | 7 years 7 months 13 days | ||
Exercise prices of outstanding options, Number of options exercisable | 1,045,574 | ||
$0.61 - $0.73 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices of outstanding options, Lower range | $ 0.61 | ||
Exercise prices of outstanding options, Upper range | $ 0.73 | ||
Exercise prices of outstanding options, Number of options outstanding | 874,250 | ||
Exercise prices of outstanding options, Average remaining contractual life | 9 years 8 months 27 days | ||
$1.00 - $1.35 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices of outstanding options, Lower range | $ 1 | ||
Exercise prices of outstanding options, Upper range | $ 1.35 | ||
Exercise prices of outstanding options, Number of options outstanding | 725,019 | ||
Exercise prices of outstanding options, Average remaining contractual life | 8 years 10 months 10 days | ||
Exercise prices of outstanding options, Number of options exercisable | 196,438 | ||
$2.43 - $5.20 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices of outstanding options, Lower range | $ 2.43 | ||
Exercise prices of outstanding options, Upper range | $ 5.20 | ||
Exercise prices of outstanding options, Number of options outstanding | 548,439 | ||
Exercise prices of outstanding options, Average remaining contractual life | 5 years 10 months 24 days | ||
Exercise prices of outstanding options, Number of options exercisable | 467,564 | ||
$6.11 - $12.16 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices of outstanding options, Lower range | $ 6.11 | ||
Exercise prices of outstanding options, Upper range | $ 12.16 | ||
Exercise prices of outstanding options, Number of options outstanding | 206,692 | ||
Exercise prices of outstanding options, Average remaining contractual life | 2 years 10 months 21 days | ||
Exercise prices of outstanding options, Number of options exercisable | 200,567 | ||
$15.00 - $19.49 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices of outstanding options, Lower range | $ 15 | ||
Exercise prices of outstanding options, Upper range | $ 19.49 | ||
Exercise prices of outstanding options, Number of options outstanding | 132,476 | ||
Exercise prices of outstanding options, Average remaining contractual life | 2 years 10 months 6 days | ||
Exercise prices of outstanding options, Number of options exercisable | 132,476 | ||
$20.20 - $32.67 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices of outstanding options, Lower range | $ 20.20 | ||
Exercise prices of outstanding options, Upper range | $ 32.67 | ||
Exercise prices of outstanding options, Number of options outstanding | 48,529 | ||
Exercise prices of outstanding options, Average remaining contractual life | 3 years 9 months 4 days | ||
Exercise prices of outstanding options, Number of options exercisable | 48,529 |
Stock Incentive Plans - Summa52
Stock Incentive Plans - Summary of Non-vested Options (Detail) - $ / shares | 1 Months Ended | 4 Months Ended | 5 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Apr. 30, 2016 | Jul. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | ||||||
Options, Granted | 892,500 | 51,120 | 900,084 | 92,600 | 943,620 | 992,684 |
Weighted-average exercise price | ||||||
Weighted-average exercise price, Granted | $ 0.63 | $ 1.40 | ||||
Weighted-average exercise price, Cancelled | $ 8.96 | $ 10.02 | ||||
Non-vested Options [Member] | ||||||
Options | ||||||
Options, Non-vested, Beginning balance | 1,251,961 | 1,251,961 | 628,733 | |||
Options, Granted | 943,620 | 992,684 | ||||
Options, Vested | (330,115) | (200,402) | ||||
Options, Cancelled | (375,635) | (169,054) | ||||
Options, Non-vested, Ending balance | 1,489,831 | 1,251,961 | ||||
Weighted-average exercise price | ||||||
Weighted-average exercise price, Beginning balance | $ 2.23 | $ 2.23 | $ 5.93 | |||
Weighted-average exercise price, Granted | 0.63 | 1.40 | ||||
Weighted-average exercise price, Vested | 2.81 | 6.64 | ||||
Weighted-average exercise price, Cancelled | 2.51 | 5.86 | ||||
Weighted-average exercise price, Ending balance | $ 1.02 | $ 2.23 |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule for the Estimated Fair Value at Date of Option Grand Using Black Scholes Option Pricing Model (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted average fair value per share of option | $ 0.63 | $ 1.40 |
Expected term | 5 years 1 month 6 days | 5 years 6 months |
Risk free interest rate | 1.24% | 1.41% |
Risk free interest rate | 1.73% | 1.70% |
Volatility | 65.00% | 65.00% |
Dividend yield | 0.00% | 0.00% |
Forfeiture rate | 23.10% | 18.56% |
Stock Incentive Plans - Summa54
Stock Incentive Plans - Summary of Restricted Stock Units (Detail) - Restricted Stock Units [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested restricted stock, Beginning balance | 454,021 | 134,731 |
Granted | 404,340 | |
Vested | (133,685) | (29,432) |
Cancelled | (194,497) | (55,618) |
Non-vested restricted stock, Ending balance | 125,839 | 454,021 |
Weighted average price at time of grant, Beginning balance | $ 1.92 | $ 5.41 |
Weighted average price at time of grant, Granted | 1.48 | |
Weighted average price at time of grant, Vested | 1.60 | 5.44 |
Weighted-average exercise price, Cancelled | 2.35 | 5.37 |
Weighted average price at time of grant, Ending balance | $ 1.60 | $ 1.92 |
Aggregate intrinsic value, Ending balance | $ 75,503 |
Stock Incentive Plans - Analysi
Stock Incentive Plans - Analysis of Restricted Stock Units and Restricted Stock Issued (Detail) - Restricted Stock [Member] - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested restricted stock, Beginning balance | 15,200 | 12,207 |
Granted | 594,072 | 60,802 |
Vested | (413,870) | (57,809) |
Cancelled | (30,701) | |
Non-vested restricted stock, Ending balance | 164,701 | 15,200 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | ||||||||||
U.S. | $ (50,689) | $ (67,254) | ||||||||
Foreign | (12,413) | (10,602) | ||||||||
Loss before income taxes | $ (22,218) | $ (25,017) | $ (8,383) | $ (7,484) | $ (12,156) | $ (48,859) | $ (8,529) | $ (8,312) | $ (63,102) | $ (77,856) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Current | ||
U.S. | $ 0 | $ 0 |
State | 0 | 0 |
Foreign | 331 | 13 |
Total current income tax expense | 331 | 13 |
Deferred | ||
U.S. | 0 | 0 |
State | 0 | 0 |
Foreign | (554) | (39) |
Total deferred income tax (benefit) | (554) | (39) |
Total income tax (benefit) | $ (223) | $ (26) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Computed at Federal Statutory Rate to Income Before Taxes (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
U.S. Federal statutory rate | (34.00%) | (34.00%) |
State taxes net of federal benefit | (4.10%) | (4.40%) |
Foreign rate differential and transactional tax | 1.80% | 1.20% |
Impact of foreign tax holiday | (0.90%) | 3.40% |
Valuation allowance | 36.60% | 33.30% |
Other | 0.20% | 0.50% |
Effective income tax rate | 0.40% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Net Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 12 | $ 152 |
Inventory reserves | 3,855 | 3,289 |
Accrued liabilities | 11 | 382 |
Warrant interest expense | 269 | 269 |
Stock compensation expense | 2,774 | 2,478 |
State net operating loss-net of tax | 9,189 | 7,456 |
Net operating loss carryforward | 50,284 | 40,417 |
Tax credits | 825 | 671 |
Depreciation | 4,995 | |
Valuation allowance | (72,199) | (52,286) |
Total deferred tax assets | 15 | 2,828 |
Deferred tax liability: | ||
Depreciation | (3,320) | |
Prepaid expenses | $ (15) | (62) |
Net deferred tax liability | $ (554) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Valuation allowance | $ 72,199,000 | $ 52,286,000 |
Investment tax credits and research and development credits scheduled to expire | 2,017 | |
Liability for uncertain tax positions | $ 2,600,000 | |
Amount of unrecognized or expected tax benefits recorded in financial statement | 1,141,000 | 1,141,000 |
Penalties related to income taxes | $ 0 | 0 |
Unrecognized potential tax benefits | 1,000,000 | |
Number of period for which income tax is exempted | 5 years | |
Decreased foreign taxes | $ 147,000 | |
Benefit of tax holiday on net income per share (diluted) | $ 0.01 | |
Current Income Tax Provision | $ 331,000 | $ 13,000 |
Cumulative undistributed earnings of foreign subsidiaries | 0 | |
Increase (Decrease) in Foreign Withholding Taxes Payable | 274,000 | |
Federal [Member] | ||
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Net operating loss carryforward | $ 148,100,000 | |
Operating loss carry forwards expiration year | 2,021 | |
Tax credit carry forward amount | $ 668,000 | |
Deferred tax asset | 21,700,000 | |
State and Local Jurisdiction [Member] | ||
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Net operating loss carryforward | $ 179,600,000 | |
Operating loss carry forwards expiration year | 2,019 | |
Deferred tax asset | $ 26,400,000 | |
Research [Member] | ||
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Tax credit carry forward amount | 68,600 | |
Investment Credit [Member] | ||
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Tax credit carry forward amount | $ 174,000 | |
Malaysia [Member] | ||
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Number of period for which income tax is exempted | 5 years | |
Tax holiday additional renewal period | 5 years | |
Current Income Tax Provision | $ 42,000 |
Income Taxes - Reconciliation61
Income Taxes - Reconciliation of Unrecognized Tax Benefit (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at December 31, 2015 | $ 1,141 |
Decrease related to prior year positions | 0 |
Tax position related to current year | 0 |
Balance at December 31, 2016 | $ 1,141 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | Jan. 02, 2013 | Aug. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
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% | 45.00% | ||
Amount of aggregate outstanding principal on the revolving line of credit | $ 10,000,000 | $ 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 | 0.375% | 0.50% | ||
Adjusted quick ratio | 1.40 | |||
Percentage of maintain operating and other deposit accounts | 25.00% | |||
Interest expense | $ 99,000 | $ 109,000 | ||
Interest expense charged on the unused portion of the facility | $ 92,000 | $ 107,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Feb. 17, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |||
Net rent expense under operating leases | $ 598,900 | $ 653,400 | |
Cost of purchasing electricity | $ 771,000 | ||
Settlement paid | $ 900,000 | ||
Settlement expenses | $ 1,100,000 |
Commitments and Contingencies64
Commitments and Contingencies - Future Minimum Payments Under all Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 592 |
2,018 | 468 |
2,019 | 145 |
Balance at December 31, 2016 | $ 1,205 |
Benefit Plan - Additional Infor
Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | ||
Employee's age limit to participate in the benefit Plan | 18 years | |
Employer matching contributions | $ 0 | $ 0 |
Quarterly Financial Data (Una66
Quarterly Financial Data (Unaudited) - Summary of Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||||||||||
Revenue | $ 4,722 | $ 7,086 | $ 3,535 | $ 4,287 | $ 2,456 | $ 5,346 | $ 7,106 | $ 8,910 | $ 19,630 | $ 23,818 |
Gross loss | (4,891) | (11,646) | (4,051) | (5,419) | (8,988) | (3,891) | (5,155) | (5,109) | (26,008) | (23,143) |
Loss from operations | (21,642) | (24,769) | (8,150) | (8,156) | (12,309) | (47,370) | (8,322) | (7,948) | (62,717) | (75,949) |
Loss before income taxes | (22,218) | (25,017) | (8,383) | (7,484) | (12,156) | (48,859) | (8,529) | (8,312) | (63,102) | (77,856) |
Net loss | $ (22,536) | $ (24,801) | $ (8,209) | $ (7,333) | $ (12,706) | $ (48,196) | $ (8,580) | $ (8,348) | $ (62,879) | $ (77,830) |
Basic and diluted loss per common share | $ (0.85) | $ (0.94) | $ (0.31) | $ (0.28) | $ (0.49) | $ (1.84) | $ (0.33) | $ (0.32) | $ (2.39) | $ (2.98) |
Weighted average common shares outstanding used in computing net loss per common share, basic and diluted: | 26,527,909 | 26,374,516 | 26,296,398 | 26,226,614 | 26,192,838 | 26,160,308 | 26,142,261 | 26,129,276 | 26,356,359 | 26,156,170 |