Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Enphase Energy, Inc. | |
Entity Central Index Key | 1,463,101 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 61,909,348 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 24,112 | $ 28,452 |
Accounts receivable, net of allowances of $5,002 and $1,808 at September 30, 2016 and December 31, 2015, respectively | 59,482 | 46,099 |
Inventory | 39,101 | 40,800 |
Prepaid expenses and other assets | 7,187 | 6,417 |
Total current assets | 129,882 | 121,768 |
Property and equipment, net | 32,453 | 32,118 |
Goodwill | 3,745 | 3,745 |
Intangibles, net | 1,669 | 2,220 |
Other assets | 8,679 | 5,677 |
Total assets | 176,428 | 165,528 |
Current liabilities: | ||
Accounts payable | 32,551 | 25,569 |
Accrued liabilities | 26,667 | 19,292 |
Deferred revenues, current | 5,942 | 3,915 |
Warranty obligations, current (includes $3,500 and $2,601 measured at fair value at September 30, 2016 and December 31, 2015, respectively) | 6,761 | 7,072 |
Revolving credit facility | 12,450 | 17,000 |
Current portion of term loan | 1,197 | 0 |
Total current liabilities | 85,568 | 72,848 |
Long-term liabilities: | ||
Deferred revenues, noncurrent | 31,827 | 25,115 |
Warranty obligations, noncurrent (includes $6,015 and $3,581 measured at fair value at September 30, 2016 and December 31, 2015, respectively) | 23,588 | 23,475 |
Other liabilities | 2,408 | 2,641 |
Term loan, less current portion | 22,808 | 0 |
Total liabilities | 166,199 | 124,079 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value, 10,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.00001 par value, 100,000 shares authorized; 59,958 and 45,821 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 1 | 0 |
Additional paid-in capital | 247,829 | 224,732 |
Accumulated deficit | (237,347) | (183,073) |
Accumulated other comprehensive loss | (254) | (210) |
Total stockholders’ equity | 10,229 | 41,449 |
Total liabilities and stockholders’ equity | $ 176,428 | $ 165,528 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowances, accounts receivable | $ 5,002 | $ 1,808 |
Warranty obligations, current at fair value | 3,500 | 2,601 |
Warranty obligations, non-current at fair value | $ 6,015 | $ 3,581 |
Preferred stock, par value (in usd per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 59,958,000 | 45,821,000 |
Common stock, shares outstanding (in shares) | 59,958,000 | 45,821,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net revenues | $ 88,684 | $ 102,874 | $ 231,990 | $ 291,620 |
Cost of revenues | 72,805 | 71,408 | 190,215 | 199,103 |
Gross profit | 15,879 | 31,466 | 41,775 | 92,517 |
Operating expenses: | ||||
Research and development | 13,169 | 12,059 | 39,326 | 38,275 |
Sales and marketing | 11,016 | 10,510 | 31,218 | 34,955 |
General and administrative | 6,708 | 7,118 | 21,121 | 23,425 |
Restructuring charges | 2,717 | 0 | 2,717 | 0 |
Total operating expenses | 33,610 | 29,687 | 94,382 | 96,655 |
Income (loss) from operations | (17,731) | 1,779 | (52,607) | (4,138) |
Other income (expense), net: | ||||
Interest expense | (1,234) | (140) | (1,598) | (305) |
Other income (expense) | 353 | (704) | 655 | (1,152) |
Total other expense, net | (881) | (844) | (943) | (1,457) |
Income (loss) before income taxes | (18,612) | 935 | (53,550) | (5,595) |
Provision for income taxes | (144) | (311) | (724) | (704) |
Net income (loss) | $ (18,756) | $ 624 | $ (54,274) | $ (6,299) |
Net loss per share, basic and diluted (in usd per share) | $ (0.40) | $ 0.01 | $ (1.16) | $ (0.14) |
Shares used in per share calculation, basic | 47,278 | 44,734 | 46,704 | 44,339 |
Shares used in per share calculation, diluted | 47,278 | 47,996 | 46,704 | 44,339 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (18,756) | $ 624 | $ (54,274) | $ (6,299) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 54 | 187 | (44) | (132) |
Comprehensive income (loss) | $ (18,702) | $ 811 | $ (54,318) | $ (6,431) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (54,274) | $ (6,299) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 8,039 | 7,704 |
Provision for doubtful accounts | 3,194 | 344 |
Asset impairment charges | 1,440 | 479 |
Amortization of debt issuance costs | 101 | 120 |
Stock-based compensation | 8,239 | 9,579 |
Revaluation of contingent consideration liability | 0 | (1,600) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (16,577) | (30,547) |
Inventory | 1,699 | (15,127) |
Prepaid expenses and other assets | (3,857) | (5,008) |
Accounts payable, accrued and other liabilities | 14,867 | 5,004 |
Warranty obligations | (198) | (1,134) |
Deferred revenues | 8,739 | 7,176 |
Net cash used in operating activities | (28,588) | (29,309) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (9,607) | (9,682) |
Purchases of intangible assets | (678) | 0 |
Net cash used in investing activities | (10,285) | (9,682) |
Cash flows from financing activities: | ||
Proceeds from public offering of common stock, net of underwriting fees | 14,593 | 0 |
Proceeds from term loan | 24,175 | 0 |
Proceeds from borrowings under revolving credit facility | 10,000 | 34,000 |
Payments under revolving credit facility | (14,550) | (17,000) |
Payments for debt issuance costs and offering costs | (401) | 0 |
Contingent consideration payment related to prior acquisition | (29) | 0 |
Proceeds from issuance of common stock under employee stock plans | 852 | 2,866 |
Net cash provided by financing activities | 34,640 | 19,866 |
Effect of exchange rate changes on cash | (107) | (416) |
Net decrease in cash and cash equivalents | (4,340) | (19,541) |
Cash and cash equivalents—Beginning of period | 28,452 | 42,032 |
Cash and cash equivalents—End of period | 24,112 | 22,491 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchases of fixed and intangible assets included in accounts payable | 517 | 584 |
Deferred public offering costs included in accounts payable | $ 446 | $ 0 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Enphase Energy, Inc. and subsidiaries (the “Company”) delivers simple, innovative and reliable energy management solutions that advance the worldwide potential of renewable energy. Our semiconductor-based microinverter system converts direct current (DC) electricity to alternating current (AC) electricity at the individual solar module level and brings a system-based, high technology approach to solar energy generation leveraging our design expertise across power electronics, semiconductors, networking, and cloud-based software technologies. Since inception, the Company has shipped over 12.6 million microinverters representing over 3 gigawatts of solar PV generating capacity, and more than 540,000 Enphase residential and commercial systems have been deployed in over 100 countries. Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the U.S, or GAAP. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Financial Information These accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, considered necessary to present fairly the Company's financial condition, results of operations, comprehensive income (loss) and cash flows for the interim periods indicated. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the operating results for the full year. Certain information and footnote disclosures typically included in annual consolidated financial statements have been condensed or omitted. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . There have been no material changes in the Company’s significant accounting policies during the nine months ended September 30, 2016 , as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Reference is made to the disclosures therein for a summary of all of the Company’s significant accounting policies. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates and assumptions reflected in the financial statements include revenue recognition, inventory valuation and accrued warranty obligations. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ materially from management’s estimates using different assumptions or under different conditions. Recently Issued Accounting Pronouncements Not Yet Effective In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which will replace most existing revenue recognition guidance under U.S. GAAP. The updated standard’s core principle is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The standard generally requires an entity to identify performance obligations in its contracts, estimate the amount of variable consideration to be received in the transaction price, allocate the transaction price to each separate performance obligation, and recognize revenue as obligations are satisfied. In addition, the updated standard requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In 2015, the FASB issued guidance to defer the effective date to fiscal years beginning after December 15, 2017 with early adoption for fiscal years beginning December 15, 2016. The guidance permits the use of either a retrospective or cumulative effect transition method. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the guidance in ASU 2014-09 and has the same effective date as the original standard. During the three months ended June 30, 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing”; ASU 2016-11, “Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”; and ASU 2016-12, “Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients.” These amendments are intended to improve and clarify the implementation guidance of ASU 2014-09 and have the same effective date as the original standard. The Company has not yet selected a transition method and is currently evaluating the impact of adoption on the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements—Going Concern.” The update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this update are effective for the annual period ending after December 15, 2016 and for annual and interim periods thereafter. The Company is currently evaluating the impact of adoption on the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which requires most entities to measure most inventories at the lower of cost or net realizable value ("NRV"). This simplifies the evaluation from the current method of lower of cost or market, where market is based on one of three measures (i.e. replacement cost, net realizable value, or net realizable value less a normal profit margin). ASU 2015-11 does not apply to inventories measured under the last-in, first-out method or the retail inventory method, and defines NRV as the “estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. The Company is currently evaluating the impact of adoption on the consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Changes to the current guidance include the accounting for equity investments, the presentation and disclosure requirements for financial instruments, and the assessment of valuation allowance on deferred tax assets related to available-for-sale securities. In addition, ASU 2016-01 establishes an incremental recognition and disclosure requirement related to the presentation of fair value changes of financial liabilities for which the fair value option has been elected. Under this guidance, an entity would be required to separately present in other comprehensive income the portion of the total fair value change attributable to instrument-specific credit risk as opposed to reflecting the entire amount in earnings. ASU 2016-01 is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adoption on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which will simplify the income tax consequences, accounting for forfeitures and classification on the Statements of Consolidated Cash Flows. ASU 2016-09 is effective for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of adoption on the consolidated financial statements. |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory as of September 30, 2016 and December 31, 2015 consists of the following (in thousands): September 30, December 31, Raw materials $ 4,677 $ 2,202 Finished goods 34,424 38,598 Total inventory $ 39,101 $ 40,800 |
WARRANTY OBLIGATIONS
WARRANTY OBLIGATIONS | 9 Months Ended |
Sep. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY OBLIGATIONS | WARRANTY OBLIGATIONS The Company’s warranty activities during the three and nine months ended September 30, 2016 and 2015 were as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Warranty obligations, beginning of period $ 30,066 $ 33,763 $ 30,547 $ 33,940 Accruals for warranties issued during period 1,194 1,400 2,931 3,707 Changes in estimates 783 498 1,548 736 Settlements (2,561 ) (2,615 ) (6,517 ) (5,480 ) Increase due to accretion expense 461 272 1,279 643 Other 406 (512 ) 561 (740 ) Warranty obligations, end of period $ 30,349 $ 32,806 $ 30,349 $ 32,806 Less current portion $ (6,761 ) $ (6,612 ) Noncurrent $ 23,588 $ 26,194 As of September 30, 2016 , the $30.3 million of warranty obligations included $9.5 million measured at fair value. As of December 31, 2015, the $30.5 million of warranty obligations included $6.2 million measured at fair value. See Note 4, “Fair Value Measurements” for additional information. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: • Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of such assets or liabilities do not entail a significant degree of judgment. • Level 2—Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The following table presents the Company’s assets and liabilities that were measured at fair value on a recurring basis and its categorization within the fair value hierarchy at September 30, 2016 and December 31, 2015 (in thousands): Fair Value September 30, December 31, Assets: Foreign currency forward contracts Level 2 $ — $ 86 Liabilities: Foreign currency forward contracts Level 2 $ — $ 9 Warranty obligations Level 3 9,515 6,182 Contingent consideration Level 3 444 473 Derivative Instruments The Company utilizes foreign currency forward contracts from time to time to reduce the impact of foreign currency fluctuations arising from both sales and purchases denominated in Euros and the British Pound Sterling. At September 30, 2016 , the Company did not have any outstanding foreign currency forward contracts. At December 31, 2015 , the notional amount of the Company’s foreign currency forward contracts outstanding was $2.4 million . For the three and nine months ended September 30, 2016 and 2015 , gains and losses from foreign currency forward contracts recorded in other income (expense), net were insignificant. Fair Value Option for Warranty Obligations Related to Microinverters Sold Since January 1, 2014 The Company’s warranty obligations related to microinverters sold since January 1, 2014 provide the Company the right, but not the requirement, to assign its warranty obligations to a third-party. Under Accounting Standards Codification (“ASC”) 825—Financial Instruments, (“fair value option”), an entity may choose to elect the fair value option for such warranties at the time it first recognizes the eligible item. The Company made an irrevocable election to account for all eligible warranty obligations associated with microinverters sold since January 1, 2014 at fair value. This election was made to reflect the underlying economics of the time value of money for an obligation that will be settled over an extended period of up to 25 years. The Company estimates the fair value of warranty obligations by calculating the warranty obligations in the same manner as for sales prior to January 1, 2014 and applying an expected present value technique to that result. The expected present value technique, an income approach, converts future amounts into a single current discounted amount. In addition to the key estimates of failure rates, claim rates and replacement costs, the Company used certain Level 3 inputs which are unobservable and significant to the overall fair value measurement. Such additional assumptions included a discount rate based on the Company’s credit-adjusted risk-free rate and compensation comprised of a profit element and risk premium required of a market participant to assume the obligation. The following table provides information regarding changes in nonfinancial liabilities related to the Company’s warranty obligations measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance at beginning of period $ 8,053 $ 5,803 $ 6,182 $ 3,562 Accruals for warranties issued during period 1,185 1,327 2,898 3,510 Changes in estimates (200 ) — (678 ) — Settlements (390 ) (74 ) (726 ) (159 ) Increase due to accretion expense 461 272 1,279 643 Other 406 (512 ) 560 (740 ) Balance at end of period $ 9,515 $ 6,816 $ 9,515 $ 6,816 Contingent Consideration Liability The following table provides information regarding changes in financial liabilities related to the contingent consideration liability arising from a previous acquisition measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance at beginning of period $ 444 $ 1,400 $ 473 $ 2,300 Revaluations — (700 ) — (1,600 ) Contingent consideration payment — — (29 ) — Balance at end of period $ 444 $ 700 $ 444 $ 700 Quantitative and Qualitative Information about Level 3 Fair Value Measurements As of September 30, 2016 , the significant unobservable inputs used in the fair value measurement of the Company’s liabilities designated as Level 3 are as follows: Item Measured at Fair Value Valuation Technique Description of Significant Unobservable Input Percent Used (Weighted-Average) Warranty obligations for microinverters sold since January 1, 2014 Discounted cash flows Profit element and risk premium 17% Credit-adjusted risk-free rate 21% Contingent consideration liability Probability-weighted discounted cash flows Risk-adjusted discount rate 17% As of December 31, 2015 , the significant unobservable inputs used in the fair value measurement of the Company’s liabilities designated as Level 3 are as follows: Item Measured at Fair Value Valuation Technique Description of Significant Unobservable Input Percent Used (Weighted-Average) Warranty obligations for microinverters sold since January 1, 2014 Discounted cash flows Profit element and risk premium 17% Credit-adjusted risk-free rate 25% Contingent consideration liability Probability-weighted discounted cash flows Risk-adjusted discount rate 17% Sensitivity of Level 3 Inputs Warranty Obligations Each of the significant unobservable inputs is independent of the other. The profit element and risk premium are estimated based on requirements of a third-party participant willing to assume the Company’s warranty obligations. The credit-adjusted risk free rate (“discount rate”) is determined by reference to the Company’s own credit standing at the fair value measurement date. Increasing or decreasing the profit element and risk premium input by 100 basis points would not have a material impact on the fair value measurement of the liability. Increasing the discount rate by 100 basis points would result in a $0.3 million reduction of the liability. Decreasing the discount rate by 100 basis points would result in a $0.3 million increase to the liability. Contingent Consideration Liability Changes in assumed probability adjustments with respect to achievement of target metrics can materially impact the fair value measurement of contingent consideration as of the acquisition date and for each subsequent period. Assumptions about the probability and amount of payout require less subjectivity over the course of the earnout period as management refines estimates based on actual events. Due to the short duration of the remaining earnout period, increasing or decreasing the risk-adjusted discount rate by 100 basis points would not have a material impact on the fair value measurement of the contingent consideration liability. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The following table presents the details of the Company’s goodwill and purchased intangible assets as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Goodwill $ 3,745 $ — $ 3,745 $ 3,745 $ — $ 3,745 Other indefinite-lived intangibles $ 286 $ — $ 286 $ 286 $ — $ 286 Intangible assets with finite lives: Customer relationships $ 900 $ (315 ) $ 585 $ 900 $ (180 ) $ 720 Patents and licensed technology 1,665 (867 ) 798 1,665 (451 ) 1,214 Total $ 2,565 $ (1,182 ) $ 1,383 $ 2,565 $ (631 ) $ 1,934 In July 2014, the Company purchased certain patents related to system interconnection and photovoltaic AC module construction. The patents are being amortized over their legal life of 3 years . The customer relationship intangible asset associated with a prior acquisition is being amortized on a straight-line basis over its estimated useful life of 5 years . In October 2015, the Company licensed certain technology related to ASIC development for a 3 year term, which is also its estimated useful life. For the nine months ended September 30, 2016 , amortization expense related to intangible assets was $0.6 million . As of September 30, 2016 , estimated future amortization expense related to finite-lived intangible assets was as follows: Year (In thousands) 2016 $ 184 2017 610 2018 409 2019 180 Total $ 1,383 |
RESTRUCTURING AND ASSET IMPAIRM
RESTRUCTURING AND ASSET IMPAIRMENT CHARGES (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET IMPAIRMENT CHARGES | RESTRUCTURING In the third quarter of 2016, the Company implemented a restructuring plan to lower its operating expenses. The restructuring plan led to a reduction of its workforce globally by approximately 11% of total headcount throughout all areas of the organization and an elimination of certain non-core projects. The restructuring actions are expected to be completed by the end of the fourth quarter of 2016. The following table presents the details of the Company’s restructuring charges for the periods indicated (in thousands): Three Months Ended 2016 2015 Employee severance and benefit arrangements $ 1,308 $ — Asset impairments 1,409 — Total restructuring and asset impairment charges $ 2,717 $ — The following table provides information regarding changes in the Company’s accrued restructuring balance for the periods indicated (in thousands): Employee Severance and Benefits Asset Impairments Total Balance at beginning of period as of December 31, 2015 $ — $ — $ — Charges 1,308 1,409 2,717 Cash payments (85 ) — (85 ) Non-cash settlement — (1,409 ) (1,409 ) Balance at end of period as of September 30, 2016 $ 1,223 $ — $ 1,223 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2016 | |
Short-term Debt [Abstract] | |
DEBT | DEBT Revolving Credit Facility The Company maintains a $50.0 million revolving credit facility with Wells Fargo Bank, N.A. (“Wells Fargo”) that was entered into in November 2012, as first amended on February 14, 2014. On December 18, 2015, the Company entered into an amended and restated revolving credit agreement with Wells Fargo (the “Revolver”) which extended the maturity date to November 7, 2019 and added an uncommitted accordion feature that could increase the size of the facility by $25.0 million , subject to the satisfaction of certain conditions. Availability under the Revolver is subject to a borrowing base calculation that limits availability to a percentage of eligible domestic accounts receivable plus a percentage of the value of eligible domestic inventory, less certain reserves. Borrowings under the Revolver bear interest in cash at an annual rate equal to, at the Company’s option, either LIBOR or a “base rate” that is comprised of, among other things, the prime rate, plus a margin that is between 1.0% and 3.75% depending on the currency borrowed and the specific term of repayment. The Revolver requires the Company to pay an unused line fee between 0.25% and 0.375% based on the average daily unused portion of the revolving credit commitment. The Revolver is secured by a first-priority security interest on substantially all assets of the Company other than intellectual property and contains customary affirmative and negative covenants (including restrictions on the Company’s ability to make dividend payments) and events of default. In addition, the Revolver requires the Company to maintain at least $15.0 million of liquidity at all times, consisting of cash on hand and undrawn availability under the Revolver (defined as borrowing base less outstanding borrowings under the Revolver) of at least $5.0 million . In July 2016, the Company entered into an amendment to the Revolver with Wells Fargo. The amendment, among other things, allowed the Company to incur indebtedness related to a term loan (described below} and increased the amount of undrawn availability that must be maintained as part of the Revolver’s $15.0 million minimum liquidity covenant from $5.0 million to $12.5 million . The Company was in compliance with such covenants as of September 30, 2016. As of September 30, 2016 , outstanding borrowings under the Revolver were $12.5 million . Based upon its eligible borrowing base, net of the restrictions concerning minimum liquidity requirement, the Company could ha ve borrowed an additional $8.8 million . The weighted-average interest rate related to the outstanding balance was 5.0% . Term Loan In July 2016, the Company entered into a Term Loan Agreement with lenders that are affiliates of Tennenbaum Capital Partners, LLC. Under the agreement, the lenders committed to advance a term loan in an aggregate principal amount of up to $25.0 million with a maturity date of July 1, 2020. The Company borrowed the entire $25.0 million of term loan commitments on the loan closing date. Monthly payments due through June 30, 2017 are interest only, followed by consecutive equal monthly payments of principal plus accrued interest beginning on July 1, 2017 and continuing through the maturity date. The term loan provides for an interest rate per annum equal to the higher of (i) 10.25% or (ii) LIBOR plus 9.5625% , subject to a 1.0% reduction if we achieve minimum levels of Revenue and EBITDA (each as defined in the Term Loan Agreement) for the twelve consecutive month period ending June 30, 2017 as set forth in the Term Loan Agreement. In addition, the Company paid a commitment fee of 3.3% of the loan amount upon closing and a closing fee of 10.0% of the loan amount is payable in four equal installments at each anniversary of the closing date. We may elect to prepay the loan by incurring a prepayment fee between 1% and 3% of the principal amount of the term loan depending on the timing and circumstances of prepayment. The term loan is secured by a second-priority security interest on substantially all our assets except intellectual property. The Term Loan Agreement does not contain any financial covenants, but is subject to customary affirmative and negative covenants including restrictions on creation of liens, dispositions of assets, dividends, mergers, or changing the nature of the Company’s business; in each case, subject to certain customary exceptions. In addition, the Term Loan Agreement contains certain customary events of default including, but not limited to, failure to pay interest, principal and fees or other amounts when due, material breach of any representation or warranty, covenant defaults, cross defaults to other material indebtedness, events of bankruptcy and the occurrence of a material adverse change (as defined in the agreement) to the Company’s business. Long-term debt was comprised of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Term loan $ 25,000 $ — Less unamortized discount and issuance costs (995 ) — Carrying amount of debt 24,005 — Less current portion (1,197 ) — Long-term debt $ 22,808 $ — As of September 30, 2016 , the amount of scheduled principal payments due on the term loan is as follows (in thousands): Year Amounts 2016 $ — 2017 3,032 2018 7,824 2019 8,665 2020 5,479 Total $ 25,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is not currently involved in any material legal proceedings. The Company may become involved in various legal proceedings and claims that arise in the ordinary course of business. Such matters are subject to uncertainty and there can be no assurance that such legal proceedings will not have a material adverse effect on its business, results of operations, financial position or cash flows. The Company believes its cash on hand of $24.1 million as of September 30, 2016 , its reduced cost structure as a result of its restructuring initiatives implemented in the third quarter of 2016, together with borrowings expected to be available under the Revolver, will be sufficient to fund its operations and satisfy its working capital needs, capital asset purchases, indebtedness payments and outstanding commitments for at least the next 12 months. If the Company is unable to meet its projected performance targets or manage its inventory levels to align with anticipated demand, its liquidity could be adversely impacted and it may need to seek additional sources of liquidity. If additional sources of liquidity are needed, the Company may consider new debt or equity offerings, but there is no assurance that such transactions could be consummated on acceptable terms or at all. Failure to raise sufficient capital when needed could have a material adverse effect on its business, results of operations and financial position. |
SALE OF COMMON STOCK
SALE OF COMMON STOCK | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
SALE OF COMMON STOCK | SALE OF COMMON STOCK On September 28, 2016, the Company completed a public offering of 13,000,000 shares of its common stock at a price to the public of $1.20 per share. Net proceeds realized were approximately $14.0 million after deducting underwriting fees and estimated offering costs. The Company intends to use the net proceeds for working capital and general corporate purposes. On October 11, 2016, the underwriter for the offering exercised in full an over-allotment option to purchase an additional 1,950,000 shares of the Company’s common stock, which generated additional net proceeds of approximately $2.2 million . The sale of the additional shares occurred subsequent to the quarter ended September 30, 2016, and the effect of the sale is not reflected in these condensed consolidated financial statements. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has adopted certain equity incentive and stock purchase plans as described in the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Equity Awards Activity Stock Options The following is a summary of stock option activity for the nine months ended September 30, 2016 (in thousands, except per share data): Number of Shares Outstanding Weighted- Average Exercise Price per Share Outstanding at December 31, 2015 8,173 $ 5.36 Granted 2,367 2.15 Exercised (374 ) 0.39 Canceled (831 ) 7.01 Outstanding at September 30, 2016 9,335 4.60 The intrinsic value of options exercised in the nine months ended September 30, 2016 was $0.7 million . As of September 30, 2016 , the intrinsic value of options outstanding was $1.1 million based on the closing price of the Company’s stock as of September 30, 2016 . Restricted Stock Units The following is a summary of restricted stock unit activity for the nine months ended September 30, 2016 (in thousands, except per share data): RSUs Weighted Average Outstanding at December 31, 2015 1,313 $ 9.31 Granted 54 1.99 Vested (432 ) 9.13 Canceled (206 ) 7.41 Outstanding at September 30, 2016 729 9.41 The total intrinsic value of restricted stock units that were vested in the nine months ended September 30, 2016 was $0.8 million . As of September 30, 2016 , the intrinsic value of restricted stock units outstanding was $0.9 million based on the closing price of the Company’s stock as of September 30, 2016 . Stock-Based Compensation Expense Compensation expense for all stock-based awards expected to vest is measured at fair value on the date of grant and recognized ratably over the requisite service period. The following table summarizes the components of total stock-based compensation expense included in the condensed consolidated statements of operations for the periods presented (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of revenues $ 295 $ 331 $ 907 $ 913 Research and development 941 1,141 3,047 3,379 Sales and marketing 560 803 1,760 2,510 General and administrative 736 1,008 2,525 2,777 Total $ 2,532 $ 3,283 $ 8,239 $ 9,579 The following table summarizes the various types of stock-based compensation expense for the periods presented (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Stock options and restricted stock units $ 1,983 $ 2,753 $ 6,703 $ 8,153 Employee stock purchase plan 549 530 1,536 1,426 Total $ 2,532 $ 3,283 $ 8,239 $ 9,579 The following table presents the weighted-average grant date fair value of options granted for the periods presented and the assumptions used to estimate those values using a Black-Scholes option pricing model: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Weighted average grant date fair value $ 1.25 $ 3.01 $ 1.31 $ 5.40 Expected term (in years) 4.5 4.6 4.5 4.5 Expected volatility 84.7 % 72.2 % 79.8 % 72.1 % Annual risk-free rate of return 1.1 % 1.5 % 1.1 % 1.4 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % As of September 30, 2016 , there was approximately $12.5 million of total unrecognized compensation expense related to unvested equity awards expected to be recognized over a weighted-average period of 2.3 years. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company used the discrete tax approach in calculating the tax expense for the three and nine months ended September 30, 2016 and 2015 due to the fact that a relatively small change in the Company’s projected pre-tax net income (loss) could result in a volatile effective tax rate. Under the discrete method, the Company determines its tax (expense) benefit based upon actual results as if the interim period was an annual period. The tax provision recorded was primarily related to income taxes attributable to its foreign operations. Under Accounting Standards Codification 740, “Income Taxes,” a provision for income taxes must be provided on the undistributed earnings of foreign subsidiaries unless such earnings are deemed to be permanently reinvested outside the United States. Prior to 2016, the Company did not provide for U.S. tax on foreign unremitted earnings because the Company considered such earnings to be permanently reinvested outside the U.S. During the nine months ended September 30, 2016, due to recent developments in its business, the Company determined that subsidiaries with cumulative earnings were not deemed to be permanently invested. Accordingly, the Company recorded income tax expense of $0.1 million on cumulative foreign earnings of approximately $4.5 million that the Company determined no longer met the criteria to be considered permanently invested. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is computed in a similar manner, but it also includes the effect of potential common shares outstanding during the period, when dilutive. Potential common shares include outstanding in-the-money stock options, restricted stock units, shares to be purchased under the Company’s employee stock purchase plan and warrants to purchase common stock. The dilutive effect of potentially dilutive common shares is reflected in diluted earnings per share by application of the treasury stock method. To the extent these potential common shares are antidilutive, they are excluded from the calculation of diluted net income (loss) per share. The following table presents the computation of basic and diluted net income (loss) per share for the periods presented (in thousands, except per share data): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Numerator: Net income (loss) $ (18,756 ) $ 624 $ (54,274 ) $ (6,299 ) Denominator: Weighted average common shares outstanding 47,278 44,734 46,704 44,339 Effect of dilutive securities Employee stock-based awards — 3,261 — — Warrants — 1 — — Weighted average common shares outstanding for diluted calculation 47,278 47,996 46,704 44,339 Net income (loss) per share, basic $ (0.40 ) $ 0.01 $ (1.16 ) $ (0.14 ) Net income (loss) per share, diluted $ (0.40 ) $ 0.01 $ (1.16 ) $ (0.14 ) For the three months ended September 30, 2015, the Company excluded 6.3 million of potential common shares outstanding from the calculation of diluted net income per share because their effect would have been antidilutive. In periods of net loss, all potential common shares were excluded from the diluted calculation because their effect would have been antidilutive. The following table summarizes the potential common shares excluded from the diluted calculation for the periods indicated (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Employee stock options 9,383 4,817 8,944 8,718 Restricted stock units 840 1,523 994 1,551 Warrants to purchase common stock 45 — 85 111 Total 10,268 6,340 10,023 10,380 |
DESCRIPTION OF BUSINESS AND B19
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the U.S, or GAAP. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information These accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, considered necessary to present fairly the Company's financial condition, results of operations, comprehensive income (loss) and cash flows for the interim periods indicated. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the operating results for the full year. Certain information and footnote disclosures typically included in annual consolidated financial statements have been condensed or omitted. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates and assumptions reflected in the financial statements include revenue recognition, inventory valuation and accrued warranty obligations. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ materially from management’s estimates using different assumptions or under different conditions. |
Recently Issued Accounting Pronouncements Not Yet Effective | Recently Issued Accounting Pronouncements Not Yet Effective In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which will replace most existing revenue recognition guidance under U.S. GAAP. The updated standard’s core principle is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The standard generally requires an entity to identify performance obligations in its contracts, estimate the amount of variable consideration to be received in the transaction price, allocate the transaction price to each separate performance obligation, and recognize revenue as obligations are satisfied. In addition, the updated standard requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In 2015, the FASB issued guidance to defer the effective date to fiscal years beginning after December 15, 2017 with early adoption for fiscal years beginning December 15, 2016. The guidance permits the use of either a retrospective or cumulative effect transition method. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the guidance in ASU 2014-09 and has the same effective date as the original standard. During the three months ended June 30, 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing”; ASU 2016-11, “Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”; and ASU 2016-12, “Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients.” These amendments are intended to improve and clarify the implementation guidance of ASU 2014-09 and have the same effective date as the original standard. The Company has not yet selected a transition method and is currently evaluating the impact of adoption on the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements—Going Concern.” The update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this update are effective for the annual period ending after December 15, 2016 and for annual and interim periods thereafter. The Company is currently evaluating the impact of adoption on the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which requires most entities to measure most inventories at the lower of cost or net realizable value ("NRV"). This simplifies the evaluation from the current method of lower of cost or market, where market is based on one of three measures (i.e. replacement cost, net realizable value, or net realizable value less a normal profit margin). ASU 2015-11 does not apply to inventories measured under the last-in, first-out method or the retail inventory method, and defines NRV as the “estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. The Company is currently evaluating the impact of adoption on the consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Changes to the current guidance include the accounting for equity investments, the presentation and disclosure requirements for financial instruments, and the assessment of valuation allowance on deferred tax assets related to available-for-sale securities. In addition, ASU 2016-01 establishes an incremental recognition and disclosure requirement related to the presentation of fair value changes of financial liabilities for which the fair value option has been elected. Under this guidance, an entity would be required to separately present in other comprehensive income the portion of the total fair value change attributable to instrument-specific credit risk as opposed to reflecting the entire amount in earnings. ASU 2016-01 is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adoption on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which will simplify the income tax consequences, accounting for forfeitures and classification on the Statements of Consolidated Cash Flows. ASU 2016-09 is effective for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of adoption on the consolidated financial statements. |
Income Taxes | The Company used the discrete tax approach in calculating the tax expense for the three and nine months ended September 30, 2016 and 2015 due to the fact that a relatively small change in the Company’s projected pre-tax net income (loss) could result in a volatile effective tax rate. Under the discrete method, the Company determines its tax (expense) benefit based upon actual results as if the interim period was an annual period. |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Inventory as of September 30, 2016 and December 31, 2015 consists of the following (in thousands): September 30, December 31, Raw materials $ 4,677 $ 2,202 Finished goods 34,424 38,598 Total inventory $ 39,101 $ 40,800 |
WARRANTY OBLIGATIONS (Tables)
WARRANTY OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
Summary of Warranty Activities | The Company’s warranty activities during the three and nine months ended September 30, 2016 and 2015 were as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Warranty obligations, beginning of period $ 30,066 $ 33,763 $ 30,547 $ 33,940 Accruals for warranties issued during period 1,194 1,400 2,931 3,707 Changes in estimates 783 498 1,548 736 Settlements (2,561 ) (2,615 ) (6,517 ) (5,480 ) Increase due to accretion expense 461 272 1,279 643 Other 406 (512 ) 561 (740 ) Warranty obligations, end of period $ 30,349 $ 32,806 $ 30,349 $ 32,806 Less current portion $ (6,761 ) $ (6,612 ) Noncurrent $ 23,588 $ 26,194 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s assets and liabilities that were measured at fair value on a recurring basis and its categorization within the fair value hierarchy at September 30, 2016 and December 31, 2015 (in thousands): Fair Value September 30, December 31, Assets: Foreign currency forward contracts Level 2 $ — $ 86 Liabilities: Foreign currency forward contracts Level 2 $ — $ 9 Warranty obligations Level 3 9,515 6,182 Contingent consideration Level 3 444 473 |
Schedule of Changes in Nonfinancial Liabilities Related to Warrant Obligations Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The following table provides information regarding changes in nonfinancial liabilities related to the Company’s warranty obligations measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance at beginning of period $ 8,053 $ 5,803 $ 6,182 $ 3,562 Accruals for warranties issued during period 1,185 1,327 2,898 3,510 Changes in estimates (200 ) — (678 ) — Settlements (390 ) (74 ) (726 ) (159 ) Increase due to accretion expense 461 272 1,279 643 Other 406 (512 ) 560 (740 ) Balance at end of period $ 9,515 $ 6,816 $ 9,515 $ 6,816 |
Summary of Changes in Financial Liabilities Related to Contingent Consideration Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The following table provides information regarding changes in financial liabilities related to the contingent consideration liability arising from a previous acquisition measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance at beginning of period $ 444 $ 1,400 $ 473 $ 2,300 Revaluations — (700 ) — (1,600 ) Contingent consideration payment — — (29 ) — Balance at end of period $ 444 $ 700 $ 444 $ 700 |
Summary of Significant Unobservable Inputs used in the Fair Value Measurement of Liabilities Designated as Level 3 | As of September 30, 2016 , the significant unobservable inputs used in the fair value measurement of the Company’s liabilities designated as Level 3 are as follows: Item Measured at Fair Value Valuation Technique Description of Significant Unobservable Input Percent Used (Weighted-Average) Warranty obligations for microinverters sold since January 1, 2014 Discounted cash flows Profit element and risk premium 17% Credit-adjusted risk-free rate 21% Contingent consideration liability Probability-weighted discounted cash flows Risk-adjusted discount rate 17% As of December 31, 2015 , the significant unobservable inputs used in the fair value measurement of the Company’s liabilities designated as Level 3 are as follows: Item Measured at Fair Value Valuation Technique Description of Significant Unobservable Input Percent Used (Weighted-Average) Warranty obligations for microinverters sold since January 1, 2014 Discounted cash flows Profit element and risk premium 17% Credit-adjusted risk-free rate 25% Contingent consideration liability Probability-weighted discounted cash flows Risk-adjusted discount rate 17% |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | The following table presents the details of the Company’s goodwill and purchased intangible assets as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Goodwill $ 3,745 $ — $ 3,745 $ 3,745 $ — $ 3,745 Other indefinite-lived intangibles $ 286 $ — $ 286 $ 286 $ — $ 286 Intangible assets with finite lives: Customer relationships $ 900 $ (315 ) $ 585 $ 900 $ (180 ) $ 720 Patents and licensed technology 1,665 (867 ) 798 1,665 (451 ) 1,214 Total $ 2,565 $ (1,182 ) $ 1,383 $ 2,565 $ (631 ) $ 1,934 |
Schedule of Estimated Future Amortization Expense Related to Finite-Lived Intangible Assets | For the nine months ended September 30, 2016 , amortization expense related to intangible assets was $0.6 million . As of September 30, 2016 , estimated future amortization expense related to finite-lived intangible assets was as follows: Year (In thousands) 2016 $ 184 2017 610 2018 409 2019 180 Total $ 1,383 |
RESTRUCTURING AND ASSET IMPAI24
RESTRUCTURING AND ASSET IMPAIRMENT CHARGES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table presents the details of the Company’s restructuring charges for the periods indicated (in thousands): Three Months Ended 2016 2015 Employee severance and benefit arrangements $ 1,308 $ — Asset impairments 1,409 — Total restructuring and asset impairment charges $ 2,717 $ — |
Schedule of Restructuring Reserve by Type of Cost | The following table provides information regarding changes in the Company’s accrued restructuring balance for the periods indicated (in thousands): Employee Severance and Benefits Asset Impairments Total Balance at beginning of period as of December 31, 2015 $ — $ — $ — Charges 1,308 1,409 2,717 Cash payments (85 ) — (85 ) Non-cash settlement — (1,409 ) (1,409 ) Balance at end of period as of September 30, 2016 $ 1,223 $ — $ 1,223 |
DEBT - (Tables)
DEBT - (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt was comprised of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Term loan $ 25,000 $ — Less unamortized discount and issuance costs (995 ) — Carrying amount of debt 24,005 — Less current portion (1,197 ) — Long-term debt $ 22,808 $ — |
Schedule of Maturities of Long-term Debt | As of September 30, 2016 , the amount of scheduled principal payments due on the term loan is as follows (in thousands): Year Amounts 2016 $ — 2017 3,032 2018 7,824 2019 8,665 2020 5,479 Total $ 25,000 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity for the nine months ended September 30, 2016 (in thousands, except per share data): Number of Shares Outstanding Weighted- Average Exercise Price per Share Outstanding at December 31, 2015 8,173 $ 5.36 Granted 2,367 2.15 Exercised (374 ) 0.39 Canceled (831 ) 7.01 Outstanding at September 30, 2016 9,335 4.60 |
Summary of Restricted Stock Unit Activity | The following is a summary of restricted stock unit activity for the nine months ended September 30, 2016 (in thousands, except per share data): RSUs Weighted Average Outstanding at December 31, 2015 1,313 $ 9.31 Granted 54 1.99 Vested (432 ) 9.13 Canceled (206 ) 7.41 Outstanding at September 30, 2016 729 9.41 |
Summary of the Components of Total Stock-Based Compensation Expense | The following table summarizes the components of total stock-based compensation expense included in the condensed consolidated statements of operations for the periods presented (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of revenues $ 295 $ 331 $ 907 $ 913 Research and development 941 1,141 3,047 3,379 Sales and marketing 560 803 1,760 2,510 General and administrative 736 1,008 2,525 2,777 Total $ 2,532 $ 3,283 $ 8,239 $ 9,579 |
Summary of Stock-Based Compensation Associated with Each Type of Award | The following table summarizes the various types of stock-based compensation expense for the periods presented (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Stock options and restricted stock units $ 1,983 $ 2,753 $ 6,703 $ 8,153 Employee stock purchase plan 549 530 1,536 1,426 Total $ 2,532 $ 3,283 $ 8,239 $ 9,579 |
Summary of the Weighted-Average Grant Date Fair Value of Options Granted | The following table presents the weighted-average grant date fair value of options granted for the periods presented and the assumptions used to estimate those values using a Black-Scholes option pricing model: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Weighted average grant date fair value $ 1.25 $ 3.01 $ 1.31 $ 5.40 Expected term (in years) 4.5 4.6 4.5 4.5 Expected volatility 84.7 % 72.2 % 79.8 % 72.1 % Annual risk-free rate of return 1.1 % 1.5 % 1.1 % 1.4 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table presents the computation of basic and diluted net income (loss) per share for the periods presented (in thousands, except per share data): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Numerator: Net income (loss) $ (18,756 ) $ 624 $ (54,274 ) $ (6,299 ) Denominator: Weighted average common shares outstanding 47,278 44,734 46,704 44,339 Effect of dilutive securities Employee stock-based awards — 3,261 — — Warrants — 1 — — Weighted average common shares outstanding for diluted calculation 47,278 47,996 46,704 44,339 Net income (loss) per share, basic $ (0.40 ) $ 0.01 $ (1.16 ) $ (0.14 ) Net income (loss) per share, diluted $ (0.40 ) $ 0.01 $ (1.16 ) $ (0.14 ) |
Schedule of Potentially Dilutive Securities Excluded from the Computation of Diluted Net Loss Per Share | The following table summarizes the potential common shares excluded from the diluted calculation for the periods indicated (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Employee stock options 9,383 4,817 8,944 8,718 Restricted stock units 840 1,523 994 1,551 Warrants to purchase common stock 45 — 85 111 Total 10,268 6,340 10,023 10,380 |
DESCRIPTION OF BUSINESS AND B28
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) system in Thousands, microinverter in Millions, watt in Billions | Sep. 30, 2016systemcountrywattmicroinverter |
Microinverter [Member] | |
Product Information [Line Items] | |
Number of product shipped | microinverter | 12.6 |
Number of watts | watt | 3 |
Residential And Commercial Systems [Member] | |
Product Information [Line Items] | |
Number of product deployed | system | 540 |
Number of countries in which product is deployed | country | 100 |
INVENTORY - Summary of Inventor
INVENTORY - Summary of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of inventory | ||
Raw materials | $ 4,677 | $ 2,202 |
Finished goods | 34,424 | 38,598 |
Total inventory | $ 39,101 | $ 40,800 |
WARRANTY OBLIGATIONS - Summary
WARRANTY OBLIGATIONS - Summary of Warranty Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Changes in the Company's product warranty liability | |||||
Warranty obligations, beginning of period | $ 30,066 | $ 33,763 | $ 30,500 | $ 33,940 | |
Accruals for warranties issued during period | 1,194 | 1,400 | 2,931 | 3,707 | |
Changes in estimates | 783 | 498 | 1,548 | 736 | |
Settlements | (2,561) | (2,615) | (6,517) | (5,480) | |
Increase due to accretion expense | 461 | 272 | 1,279 | 643 | |
Other | 406 | (512) | 561 | (740) | |
Warranty obligations, end of period | 30,349 | 32,806 | 30,349 | 32,806 | |
Less current portion | (6,761) | (6,612) | (6,761) | (6,612) | $ (7,072) |
Noncurrent | $ 23,588 | $ 26,194 | $ 23,588 | $ 26,194 | $ 23,475 |
WARRANTY OBLIGATIONS - Narrativ
WARRANTY OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Product Warranty Liability [Line Items] | ||||||
Warranty obligations, end of period | $ 30,349 | $ 30,066 | $ 30,500 | $ 32,806 | $ 33,763 | $ 33,940 |
Recurring | Warranty obligations for microinverters sold since January 1, 2014 | Level 3 | ||||||
Product Warranty Liability [Line Items] | ||||||
Fair value liabilities | $ 9,515 | $ 8,053 | $ 6,182 | $ 6,816 | $ 5,803 | $ 3,562 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Level 2 | ||||||
Assets: | ||||||
Foreign currency forward contracts | $ 0 | $ 86 | ||||
Liabilities: | ||||||
Foreign currency forward contracts | 0 | 9 | ||||
Level 3 | Warranty obligations | ||||||
Liabilities: | ||||||
Fair value liabilities | 9,515 | $ 8,053 | 6,182 | $ 6,816 | $ 5,803 | $ 3,562 |
Level 3 | Contingent consideration | ||||||
Liabilities: | ||||||
Fair value liabilities | $ 444 | $ 473 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Discounted cash flows | Recurring | Level 3 | Contingent consideration | ||
Derivative [Line Items] | ||
Decrease to fair value measurement as a result of 100 basis point increase | $ 300,000 | |
Increase to fair value measurement as a result of 100 basis point decrease | 300,000 | |
Not designated as hedging instrument | Foreign exchange forward | ||
Derivative [Line Items] | ||
Notional amount of foreign currency | $ 0 | $ 2,400,000 |
FAIR VALUE MEASUREMENTS - Sch34
FAIR VALUE MEASUREMENTS - Schedule of Changes in Nonfinancial Liabilities Related to Warrant Obligations Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - Level 3 - Recurring - Warranty obligations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ 8,053 | $ 5,803 | $ 6,182 | $ 3,562 |
Accruals for warranties issued during period | 1,185 | 1,327 | 2,898 | 3,510 |
Changes in estimates | (200) | 0 | (678) | 0 |
Settlements | (390) | (74) | (726) | (159) |
Increase due to accretion expense | 461 | 272 | 1,279 | 643 |
Other | 406 | (512) | 560 | (740) |
Balance at end of period | $ 9,515 | $ 6,816 | $ 9,515 | $ 6,816 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Changes in Financial Liabilities Related to Contingent Consideration Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - Next Phase Solar, Inc. - Contingent consideration - Recurring - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ 444 | $ 1,400 | $ 473 | $ 2,300 |
Revaluations | 0 | (700) | 0 | (1,600) |
Contingent consideration payment | 0 | 0 | (29) | 0 |
Balance at end of period | $ 444 | $ 700 | $ 444 | $ 700 |
FAIR VALUE MEASUREMENTS - Sum36
FAIR VALUE MEASUREMENTS - Summary of Significant Unobservable Inputs used in the Fair Value Measurement of Liabilities Designated as Level 3 (Details) - Discounted cash flows - Recurring - Level 3 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Warranty obligations for microinverters sold since January 1, 2014 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Profit element and risk premium | 17.00% | 17.00% |
Credit-adjusted risk-free rate | 21.00% | 25.00% |
Contingent consideration liability | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Risk-adjusted discount rate | 17.00% | 17.00% |
GOODWILL AND INTANGIBLE ASSET37
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, gross | $ 3,745 | $ 3,745 |
Goodwill | 3,745 | 3,745 |
Other indefinite-lived intangibles | 286 | 286 |
Intangible assets with finite lives: | ||
Intangibles assets with finite lives, gross | 2,565 | 2,565 |
Intangibles assets with finite lives, accumulated amortization | (1,182) | (631) |
Total | 1,383 | 1,934 |
Customer relationships | ||
Intangible assets with finite lives: | ||
Intangibles assets with finite lives, gross | 900 | 900 |
Intangibles assets with finite lives, accumulated amortization | (315) | (180) |
Total | 585 | 720 |
Patents and licensed technology | ||
Intangible assets with finite lives: | ||
Intangibles assets with finite lives, gross | 1,665 | 1,665 |
Intangibles assets with finite lives, accumulated amortization | (867) | (451) |
Total | $ 798 | $ 1,214 |
GOODWILL AND INTANGIBLE ASSET38
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2014 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense related to intangible assets | $ 0.6 | |||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life | 5 years | |||
Patents and licensed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life | 3 years | |||
ASIC development | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life | 3 years |
GOODWILL AND INTANGIBLE ASSET39
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Amortization Expense Related to Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 184 | |
2,017 | 610 | |
2,018 | 409 | |
2,019 | 180 | |
Total | $ 1,383 | $ 1,934 |
RESTRUCTURING AND ASSET IMPAI40
RESTRUCTURING AND ASSET IMPAIRMENT CHARGES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Employee severance and benefit arrangements | $ 1,308 | $ 0 | |
Asset impairments | 1,409 | 0 | |
Total restructuring and asset impairment charges | $ 2,717 | $ 0 | |
Restructuring Plan 2016 | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairments | $ 1,409 | ||
Total restructuring and asset impairment charges | 2,717 | ||
Employee Severance | Restructuring Plan 2016 | |||
Restructuring Cost and Reserve [Line Items] | |||
Workforce reduction, percentage | 11.00% | ||
Asset impairments | 0 | ||
Total restructuring and asset impairment charges | $ 1,308 |
RESTRUCTURING AND ASSET IMPAI41
RESTRUCTURING AND ASSET IMPAIRMENT CHARGES - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Charges | $ 2,717 | $ 0 | |
Non-cash settlement | (1,409) | $ 0 | |
Restructuring Plan 2016 | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | $ 0 | ||
Charges | 2,717 | ||
Cash payments | (85) | ||
Non-cash settlement | (1,409) | ||
Restructuring Reserve, Ending Balance | 1,223 | 1,223 | |
Employee Severance | Restructuring Plan 2016 | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | 0 | ||
Charges | 1,308 | ||
Cash payments | (85) | ||
Non-cash settlement | 0 | ||
Restructuring Reserve, Ending Balance | 1,223 | 1,223 | |
Asset Impairments | Restructuring Plan 2016 | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | 0 | ||
Charges | 1,409 | ||
Cash payments | 0 | ||
Non-cash settlement | (1,409) | ||
Restructuring Reserve, Ending Balance | $ 0 | $ 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2016 | Jul. 31, 2016 | Dec. 31, 2015 | Dec. 18, 2015 | |
Short-term Debt [Line Items] | ||||
Outstanding borrowings | $ 12,450,000 | $ 17,000,000 | ||
Line of Credit | Wells Fargo Bank | Revolving credit facility | ||||
Short-term Debt [Line Items] | ||||
Credit line facility | 50,000,000 | |||
Credit line facility, accordion feature | $ 25,000,000 | |||
Amount of liquidity required for debt compliance | 15,000,000 | |||
Amount of undrawn credit for debt compliance | 5,000,000 | |||
Outstanding borrowings | 12,500,000 | |||
Remaining borrowing capacity | $ 8,800,000 | |||
Weighted average interest rate | 5.00% | |||
Line of Credit | Wells Fargo Bank | Revolving credit facility | Amendment To Revolver | ||||
Short-term Debt [Line Items] | ||||
Amount of liquidity required for debt compliance | $ 15,000,000 | |||
Amount of undrawn credit for debt compliance | $ 5,000,000 | $ 12,500,000 | ||
Line of Credit | Wells Fargo Bank | Revolving credit facility | LIBOR | Minimum | ||||
Short-term Debt [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Unused capacity, commitment fee percentage | 0.25% | |||
Line of Credit | Wells Fargo Bank | Revolving credit facility | LIBOR | Maximum | ||||
Short-term Debt [Line Items] | ||||
Basis spread on variable rate | 3.75% | |||
Unused capacity, commitment fee percentage | 0.375% |
DEBT - Term Loan (Details)
DEBT - Term Loan (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Jul. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||
Long-term debt | $ 24,005 | $ 0 | |
Tennenbaum Capital Partners, LLC | |||
Line of Credit Facility [Line Items] | |||
Interest rate during period | 10.25% | ||
Commitment fee percentage | 3.30% | ||
Closing fee (as a percent) | 10.00% | ||
Tennenbaum Capital Partners, LLC | Secured debt | |||
Line of Credit Facility [Line Items] | |||
Long-term debt | $ 25,000 | ||
LIBOR | Tennenbaum Capital Partners, LLC | |||
Line of Credit Facility [Line Items] | |||
Interest rate during period | 9.5625% | ||
Reduction of interest rate during period (as a percent) | 1.00% | ||
Minimum | Tennenbaum Capital Partners, LLC | |||
Line of Credit Facility [Line Items] | |||
Prepayment fee (as a percent) | 1.00% | ||
Maximum | Tennenbaum Capital Partners, LLC | |||
Line of Credit Facility [Line Items] | |||
Prepayment fee (as a percent) | 3.00% |
DEBT - Long term debt (Details)
DEBT - Long term debt (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Term loan | $ 25,000 | $ 0 |
Less unamortized discount and issuance costs | (995) | 0 |
Carrying amount of debt | 24,005 | 0 |
Less current portion | (1,197) | 0 |
Long-term debt | $ 22,808 | $ 0 |
DEBT - Maturities (Details)
DEBT - Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,016 | $ 0 | |
2,017 | 3,032 | |
2,018 | 7,824 | |
2,019 | 8,665 | |
2,020 | 5,479 | |
Amount borrowed | $ 25,000 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - (Details) $ in Millions | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Cash on hand | $ 24.1 |
SALE OF COMMON STOCK (Details)
SALE OF COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 11, 2016 | Sep. 28, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Equity [Abstract] | ||||
Proceeds from public offering of common stock, net of underwriting fees | $ 14,000 | $ 14,593 | $ 0 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Stock issued, value, stock options exercised, net | $ 2,200 | |||
Common Stock | ||||
Subsequent Event [Line Items] | ||||
Common stock issued during period | 13,000,000 | |||
Shares issued, price per share (in USD per share) | $ 1.20 | |||
Common Stock | Over-Allotment Option | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Common stock issued during period | 1,950,000 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Number of Shares Outstanding | |
Outstanding, beginning balance (in shares) | shares | 8,173 |
Granted (in shares) | shares | 2,367 |
Exercised (in shares) | shares | (374) |
Canceled (in shares) | shares | (831) |
Outstanding, ending balance (in shares) | shares | 9,335 |
Weighted- Average Exercise Price per Share | |
Outstanding, beginning balance (in usd per share) | $ / shares | $ 5.36 |
Granted (in usd per share) | $ / shares | 2.15 |
Exercised (in usd per share) | $ / shares | 0.39 |
Canceled (in usd per share) | $ / shares | 7.01 |
Outstanding, ending balance (in usd per share) | $ / shares | $ 4.60 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Intrinsic value of options exercised during period | $ 0.7 |
Intrinsic value of options outstanding | 1.1 |
Total unrecognized compensation cost | $ 12.5 |
Weighted-average recognition period for unrecognized compensation cost | 2 years 3 months 6 days |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of stock vested during period | $ 0.8 |
Intrinsic value of restricted stock units outstanding | $ 0.9 |
STOCK-BASED COMPENSATION - Su50
STOCK-BASED COMPENSATION - Summary of Restricted Stock Unit Activity (Details) - Restricted stock units shares in Thousands | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
RSUs | |
Outstanding, beginning balance (in shares) | shares | 1,313 |
Granted (in shares) | shares | 54 |
Vested (in shares) | shares | (432) |
Canceled (in shares) | shares | (206) |
Outstanding, ending balance (in shares) | shares | 729 |
Weighted Average Fair Value per Share at Grant Date | |
Outstanding, beginning balance (in usd per share) | $ / shares | $ 9.31 |
Granted (in usd per share) | $ / shares | 1.99 |
Vested (in usd per share) | $ / shares | 9.13 |
Canceled (in usd per share) | $ / shares | 7.41 |
Outstanding, ending balance (in usd per share) | $ / shares | $ 9.41 |
STOCK-BASED COMPENSATION - Su51
STOCK-BASED COMPENSATION - Summary of the Components of Total Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allocation of Stock-based Compensation Expense Included in the Consolidated Statement of Operations [Abstract] | ||||
Total stock-based compensation expense | $ 2,532 | $ 3,283 | $ 8,239 | $ 9,579 |
Cost of revenues | ||||
Allocation of Stock-based Compensation Expense Included in the Consolidated Statement of Operations [Abstract] | ||||
Total stock-based compensation expense | 295 | 331 | 907 | 913 |
Research and development | ||||
Allocation of Stock-based Compensation Expense Included in the Consolidated Statement of Operations [Abstract] | ||||
Total stock-based compensation expense | 941 | 1,141 | 3,047 | 3,379 |
Sales and marketing | ||||
Allocation of Stock-based Compensation Expense Included in the Consolidated Statement of Operations [Abstract] | ||||
Total stock-based compensation expense | 560 | 803 | 1,760 | 2,510 |
General and administrative | ||||
Allocation of Stock-based Compensation Expense Included in the Consolidated Statement of Operations [Abstract] | ||||
Total stock-based compensation expense | $ 736 | $ 1,008 | $ 2,525 | $ 2,777 |
STOCK-BASED COMPENSATION - Su52
STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Associated with Each Type of Award (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 2,532 | $ 3,283 | $ 8,239 | $ 9,579 |
Stock options and restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1,983 | 2,753 | 6,703 | 8,153 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 549 | $ 530 | $ 1,536 | $ 1,426 |
STOCK-BASED COMPENSATION - Su53
STOCK-BASED COMPENSATION - Summary of the Weighted-Average Grant Date Fair Value of Options Granted (Details) - Stock options - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
The fair value of each option granted during the periods | ||||
Weighted average grant date fair value (in usd per share) | $ 1.25 | $ 3.01 | $ 1.31 | $ 5.40 |
Expected term (in years) | 4 years 6 months | 4 years 7 months 20 days | 4 years 6 months | 4 years 6 months |
Expected volatility | 84.70% | 72.20% | 79.80% | 72.10% |
Annual risk-free rate of return | 1.10% | 1.50% | 1.10% | 1.40% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Deferred tax liabilities, undistributed foreign earnings | $ 0.1 |
Income (loss) from continuing operations before income taxes, foreign | $ 4.5 |
NET INCOME (LOSS) PER SHARE - S
NET INCOME (LOSS) PER SHARE - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income (loss) | $ (18,756) | $ 624 | $ (54,274) | $ (6,299) |
Denominator: | ||||
Shares used in per share calculation, basic | 47,278 | 44,734 | 46,704 | 44,339 |
Effect of dilutive securities | ||||
Employee stock-based awards | 0 | 3,261 | 0 | 0 |
Warrants | 0 | 1 | 0 | 0 |
Weighted average common shares outstanding for diluted calculation | 47,278 | 47,996 | 46,704 | 44,339 |
Net income (loss) per share, basic (in usd per share) | $ (0.40) | $ 0.01 | $ (1.16) | $ (0.14) |
Net income (loss) per share, diluted (in usd per share) | $ (0.40) | $ 0.01 | $ (1.16) | $ (0.14) |
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 10,268 | 6,340 | 10,023 | 10,380 |
NET INCOME (LOSS) PER SHARE -56
NET INCOME (LOSS) PER SHARE - Schedule of Potentially Dilutive Securities Excluded from the Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
The potential common shares outstanding that were excluded from the computation of diluted net loss per share attributable to common stockholders | ||||
Total (in shares) | 10,268 | 6,340 | 10,023 | 10,380 |
Employee stock options | ||||
The potential common shares outstanding that were excluded from the computation of diluted net loss per share attributable to common stockholders | ||||
Total (in shares) | 9,383 | 4,817 | 8,944 | 8,718 |
Restricted stock units | ||||
The potential common shares outstanding that were excluded from the computation of diluted net loss per share attributable to common stockholders | ||||
Total (in shares) | 840 | 1,523 | 994 | 1,551 |
Warrants to purchase common stock | ||||
The potential common shares outstanding that were excluded from the computation of diluted net loss per share attributable to common stockholders | ||||
Total (in shares) | 45 | 0 | 85 | 111 |