Gigamon (GIMO) 10-Q 8 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 02, 2016	Jul. 31, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 2, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	GIMO
Entity Registrant Name	GIGAMON INC.
Entity Central Index Key	1,484,504
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		35,276,909

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 135,242	$ 120,212
Short-term investments	92,839	90,001
Accounts receivable, net of allowance for doubtful accounts of $406 and $309, as of July 2, 2016 and December 26, 2015, respectively	44,715	47,947
Inventories	6,325	3,813
Prepaid expenses and other current assets	8,745	7,621
Total current assets	287,866	269,594
Property and equipment, net	10,675	9,416
Deferred tax assets	30,958	135
Other assets, non-current	908	766
TOTAL ASSETS	330,407	279,911
CURRENT LIABILITIES:
Accounts payable	3,101	3,724
Accrued liabilities	28,057	37,334
Deferred revenue	55,571	62,248
Total current liabilities	86,729	103,306
Deferred revenue, non-current	24,285	19,883
Deferred tax liability	211	279
Other liabilities, non-current	836	1,087
TOTAL LIABILITIES	112,061	124,555
Commitments and Contingencies (Note 5)
STOCKHOLDERS’ EQUITY:
Preferred stock—$0.0001 par value; 20,000 shares authorized, no shares issued or outstanding as of July 2, 2016 and December 26, 2015	0	0
Common stock—$0.0001 par value; 1,000,000 shares authorized, 35,261 and 34,323 shares issued and outstanding as of July 2, 2016 and December 26, 2015, respectively	4	3
Treasury stock— 8,110 shares outstanding as of July 2, 2016 and December 26, 2015	(12,469)	(12,469)
Additional paid-in capital	237,347	211,402
Accumulated other comprehensive income (loss)	67	(47)
Accumulated deficit	(6,603)	(43,533)
TOTAL STOCKHOLDERS’ EQUITY	218,346	155,356
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 330,407	$ 279,911

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 406	$ 309
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	35,260,909	34,323,457
Common stock, shares outstanding	35,260,909	34,323,457
Treasury stock, shares authorized and outstanding	8,109,848	8,109,848

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
Revenue:
Product	$ 51,308	$ 34,814	$ 95,970	$ 66,966
Service	23,795	16,632	46,344	31,333
Total revenue	75,103	51,446	142,314	98,299
Cost of revenue:
Product	11,510	9,558	22,217	19,003
Service	2,339	1,763	4,421	3,540
Total cost of revenue	13,849	11,321	26,638	22,543
Gross profit	61,254	40,125	115,676	75,756
Operating expenses:
Research and development	17,250	12,227	32,608	23,723
Sales and marketing	28,843	21,171	56,500	40,003
General and administrative	9,147	6,702	17,142	12,721
Total operating expenses	55,240	40,100	106,250	76,447
Income (loss) from operations	6,014	25	9,426	(691)
Interest income	219	105	426	224
Other income (expense), net	(173)	7	(242)	(3)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	6,060	137	9,610	(470)
Income tax benefit (provision)	27,899	(99)	27,320	(187)
Net income (loss)	$ 33,959	$ 38	$ 36,930	$ (657)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.97	$ 0	$ 1.06	$ (0.02)
Diluted (in dollars per share)	$ 0.91	$ 0	$ 1	$ (0.02)
Weighted average shares used in computing net income (loss) per share:
Basic (in shares)	35,146	33,429	34,878	33,203
Diluted (in shares)	37,262	35,666	36,792	33,203

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 33,959	$ 38	$ 36,930	$ (657)
Other comprehensive gain (loss):
Unrealized gain (loss) on available-for-sale investments, net	30	(5)	114	104
Comprehensive income (loss)	$ 33,989	$ 33	$ 37,044	$ (553)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 36,930	$ (657)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,702	2,972
Stock-based compensation expense	18,780	15,911
Deferred income taxes	(30,891)	0
Excess tax benefit from employee stock-based compensation	(3,485)	0
Inventory write-down	484	1,012
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	(215)	0
Allowance for doubtful accounts	97	0
Changes in operating assets and liabilities:
Accounts receivable	3,135	(24)
Inventories	(2,832)	310
Prepaid expenses and other assets	(1,740)	(1,802)
Accounts payable	(515)	(83)
Accrued liabilities and other liabilities	(5,663)	(9)
Deferred revenue	(2,275)	13,217
Net cash provided by operating activities	14,942	30,847
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments	(63,831)	(7,999)
Proceeds from Sale of Short-term Investments	0	1,455
Proceeds from maturities of short-term investments	61,247	34,333
Purchase of property and equipment	(4,478)	(2,224)
Net cash (used in) provided by investing activities	(7,062)	25,565
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from employee stock purchase plan	3,368	2,607
Proceeds from exercise of stock options	4,126	2,768
Shares repurchased for tax withholdings on vesting of restricted stock units	(3,829)	(3,969)
Excess tax benefits from employee stock-based compensation	3,485	0
Net cash provided by financing activities	7,150	1,406
NET INCREASE IN CASH AND CASH EQUIVALENTS	15,030	57,818
CASH AND CASH EQUIVALENTS — Beginning of period	120,212	38,941
CASH AND CASH EQUIVALENTS — End of period	135,242	96,759
Income taxes paid during the period	811	266
Unpaid property and equipment purchases	$ 121	$ 171

Description of the Company

Description of the Company	6 Months Ended
	Jul. 02, 2016
Accounting Policies [Abstract]
Description of the Company	Description of the Company The Company Gigamon Inc. (the “Company”) designs, develops and sells products and services that together provide customers with visibility and control of network traffic. The Company serves global enterprises and service providers that seek to maintain and improve the security, reliability, and performance of their network infrastructure.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jul. 02, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Consolidation The Company prepared its condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 26, 2015 . There have been no changes to the Company’s significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on the Company’s condensed consolidated financial statements and related notes. The Company has a 52 or 53-week fiscal year that ends on the last Saturday in December. Fiscal 2015 was a 52-week fiscal year ending on December 26, 2015 and each quarter therein was 13-week quarter. Fiscal 2016 is a 53-week fiscal year ending on December 31, 2016, with the first quarter being a 14-week quarter which ended on April 2, 2016 and each subsequent quarter being a 13-week quarter. Fiscal 2017 will be a 52-week fiscal year ending on December 30, 2017, with each quarter therein being a 13-week quarter. Unaudited Interim Financial Statements The accompanying unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include normal recurring adjustments, necessary to fairly state the Company’s financial position as of July 2, 2016 , its results of operations and comprehensive income (loss) for the three and six months ended July 2, 2016 and June 27, 2015 , respectively, and cash flows for the six months ended July 2, 2016 and June 27, 2015 . The financial data and the other financial information disclosed in the accompanying notes to the condensed consolidated financial statements related to these three and six month periods are also unaudited. The fiscal year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations in the three and six months ended July 2, 2016 are not necessarily indicative of the results to be expected for the full fiscal year or any other future periods. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain 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 reported periods. On an ongoing basis, the Company evaluates its estimates, including but not limited to those related to revenue recognition, allowance for doubtful accounts, warranty reserve, excess and obsolete inventory write-downs, stock-based compensation expense, depreciable useful lives and income taxes. The Company bases its estimates on historical experience, projections for future performance and other assumptions that it believes to be reasonable under the circumstances. Actual results could differ materially from those estimates. Cash Equivalents and Marketable Securities All highly liquid marketable securities with original maturities of less than three months at the date of purchase are considered to be cash equivalents. Marketable securities are generally classified as available-for-sale for use in current operations, if required, and are reported at fair value, with unrealized gains and losses, net of tax, presented as a separate component of stockholders’ equity within accumulated other comprehensive income (loss). All realized gains and losses and unrealized losses resulting from declines in fair value that are other-than-temporary are recorded in other income (expense), net, in the period of occurrence. The Company uses the specific identification method to determine the realized gains and losses on investments. For all investments in marketable securities, the Company assesses whether an impairment is other-than-temporary. If the fair value of a security is less than its amortized cost basis, an impairment is considered other-than-temporary if (i) the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its entire amortized cost basis, or (ii) the Company does not expect to recover the entire amortized cost of the security. If an impairment is considered other-than-temporary based on condition (i), the entire difference between the amortized cost and the fair value of the security is recognized in earnings. If an impairment is considered other-than-temporary based on condition (ii), the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the security, will be recognized in earnings, and the amount relating to all other factors will be recognized in accumulated other comprehensive income (loss). The Company evaluates both qualitative and quantitative factors such as duration and severity of the unrealized losses, credit ratings, default and loss rates of the underlying collateral, structure and credit enhancements to determine if a credit loss may exist. Concentrations The Company operates in highly competitive and rapidly changing markets that could negatively impact the Company’s operating results. A number of components that meet the Company’s manufacturing requirements are available only from single source suppliers. In addition, the Company relies on one contract manufacturer to manufacture a substantial majority of its products. The inability of its single source suppliers and contract manufacturer to provide the Company with adequate supplies of high-quality components and products could cause a delay in order fulfillment, which could adversely affect the Company’s revenue, cost of revenue and operating results. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, short-term investments and accounts receivable. The Company currently invests the majority of its cash in high-grade government and corporate debt and maintains these investments with a limited number of major financial institutions in the United States that management believes are creditworthy. Such deposits may exceed the insured limits provided on them. The Company mitigates credit risk associated with its accounts receivable by performing ongoing credit evaluations of its customers and determines if it needs to establish an allowance for doubtful accounts for estimated losses based on management’s assessment of the collectability of customer accounts. The Company sells its products primarily through channel partners, including distributors and resellers, and directly to end-user customers. For the three and six months ended July 2, 2016 , one end-user customer accounted for 13% of revenue. For the three and six months ended June 27, 2015 , no end-user customer accounted for 10% or more of revenue. The following customers represented more than 10% of total revenue or accounts receivable: Three Months Ended Six Months Ended July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 Percent of Revenue: Customer A (distributor) 32 % 48 % 34 % 43 % Customer B (distributor) 27 % 18 % 26 % 20 % Customer C (end-user) 13 % * 13 % * * Represents less than 10% of total revenues As of July 2, 2016 December 26, 2015 Percent of Accounts Receivable: Customer A (distributor) 16 % 19 % Customer B (distributor) 44 % 30 % Customer C (end-user) 10 % 11 % Inventories Inventory is valued at the lower of cost computed on a first-in, first-out basis, or market value. The Company writes down inventory in excess of forecasted demand over a certain period, as a component of cost of revenue. In these cases, inventory is reduced to estimated realizable value based on historical usage and expected demand. At the point of inventory write-down, a new lower-cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Inherent in the Company’s estimates of market value in determining inventory valuation are estimates related to economic trends, future demand for the Company’s products, and technical obsolescence of products. The Company uses a contract manufacturer to provide the majority of its manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, the Company enters into agreements with the contract manufacturer that either allow it to procure inventory based upon criteria as defined by the Company, or establish the parameters defining the Company’s requirements. A portion of the Company’s reported purchase commitments arising from these agreements consists of non-cancelable commitments. The Company records a liability for firm, non-cancelable and unconditional purchase commitments for quantities in excess of its future demand forecasts consistent with the valuation of the Company’s excess and obsolete inventory. The Company recorded inventory write-downs within cost of revenue of $0.3 million and $0.5 million in the three months ended July 2, 2016 and June 27, 2015 , respectively, and $0.5 million and $1.0 million in the six months ended July 2, 2016 and June 27, 2015 , respectively. Revenue Recognition The Company generates product revenue from sales of traffic visibility solutions to customers as well as service revenue from sales of maintenance and support contracts and other billable services. The Company typically sells products and services in a single transaction. The Company’s typical arrangement consists of the sale of products together with maintenance and support or a renewal of maintenance and support contracts. Billable services are billed in advance or when service is provided and performed as requested by customers. Under maintenance and support contracts, services are provided as needed by customers over the fixed arrangement term. The Company does not grant its customers a general right of return or any refund terms, except to two of the Company’s distributors which have stock rotation rights and in those cases, revenue is deferred until sell-through has occurred. Revenue from distributors is reported net of rebates, discounts and any other sales incentives. The Company recognizes revenue when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the sales price is fixed or determinable and (4) collectability is reasonably assured. When sales arrangements contain multiple elements and software and non-software components that function together to deliver the products’ essential functionality, the Company allocates revenue to each element based on a selling price hierarchy: vendor-specific objective evidence ("VSOE"), if available, third party evidence ("TPE"), of the selling price if VSOE is not available, or best estimated selling prices ("BESP") if neither VSOE nor TPE is available. When the Company enters into arrangements to provide more than one product or service, or what the Company refers to as multiple deliverables, these arrangements are evaluated to determine if the multiple elements consist of more than one unit of accounting and can be separated accordingly. Based on separation criteria under the guidance, deliverables in multiple element arrangements can be segregated into separate units of accounting if they have value to the customer on a standalone basis. If deliverables can be separated into individual units of accounting, then the arrangement consideration is allocated among deliverables based on their relative selling price. Revenue from each deliverable is recognized when all requirements are met for that specific deliverable. If deliverables cannot be separated into separate units of accounting, then the arrangement will be accounted for as a single unit of accounting and revenue will be recognized when all requirements are met for all deliverables within the arrangement. The Company has established VSOE for maintenance and support contracts since the majority of selling prices fall within a narrow range when sold separately. TPE is not used since this information is not widely available in the market and the Company does not consider its products to be similar to or interchangeable with its competitors’ products in standalone sales to similarly situated customers. For deliverables with no established VSOE, such as standard product offerings, the Company determines the standalone selling price for such deliverables by establishing BESP, which incorporates historical selling prices, the effect of market conditions, gross margin objectives and pricing practices, as well as entity specific factors. The Company monitors and evaluates BESP on a regular basis to ensure that changes in circumstances are accounted for in a timely manner. Service revenue is recognized ratably over the contractual support period, which is typically one year but can be up to 10 years . In accordance with contractual provisions, the Company may offer cooperative marketing funds based on a fixed dollar percentage of product sales to certain of its channel partners or to fund specific marketing activities for these partners. The Company records such amounts as a reduction to revenue or, if the Company has evidence of fair value of the separable and identifiable benefit received, as a marketing expense. Revenue is recorded net of sales taxes. Costs of products not yet recognized as revenue are deferred and included as a component of prepaid expenses and other current assets on the condensed consolidated balance sheets. As of July 2, 2016 and December 26, 2015 , deferred cost of product revenue was zero and $1.6 million , respectively. Shipping and Handling Charges Shipping and handling costs are recorded in cost of revenue in the period products are shipped to customers. Warranty The Company provides five -year warranties against defects in manufacturing on its hardware products. The Company accrues for potential liability claims as a component of cost of product revenue based on historical trends of product failure rates and the expected material and labor costs to provide warranty services. The accrued warranty balance is reviewed periodically for adequacy and is included in accrued liabilities and in other non-current liabilities on the condensed consolidated balance sheets. Stock-Based Compensation Stock-based compensation expense related to stock-based transactions, including employee and director awards, as well as employee stock purchase plan purchase rights (“ESPP purchase rights”), is measured and recognized in the consolidated financial statements based on the fair value of the award on the grant date. Stock-based compensation expense related to equity awards that can be settled in cash is measured based on the fair value on each balance sheet date until the settlement dates. The fair value of option awards and ESPP purchase rights is estimated using the Black-Scholes option-pricing model. This model requires assumptions including the market value of the Company’s common stock, expected volatility, expected term of the award, expected dividend yield and risk-free interest rate. Expected term for stock option awards is determined based on the mid-point of the vest period and the contractual period of each option award due to the Company’s limited historical stock option exercise data. Expected volatility is established based on the historical volatility of the common stock of Gigamon, combined with the historical volatility of a peer group of publicly traded companies. Stock-based compensation expense, net of estimated forfeitures, is recognized on a graded-vesting basis over the requisite service periods of the awards, unless a performance-based condition exists. Expenses for performance-based awards are recognized when the issuance of the underlying awards are probable, which is re-measured at each reporting period and the expense is trued up accordingly. Expenses for consultant awards are measured based on the fair value on the vest date. Expenses related to the option grants to consultants that have not been vested as of the reporting date are marked to market until the earlier of the commitment or the completion of the underlying performance. The Company estimates a forfeiture rate to calculate the stock-based compensation for its awards based on an analysis of its historical experience, analysis of employee turnover and other related factors. The Company is currently using two separate forfeiture rates, based on the classification of the employees. Advertising Costs Expenses related to advertising of products are charged to sales and marketing expense as incurred. For all periods presented, advertising expenses were not material. Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized on a more likely than not basis. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income and the feasibility of any viable tax planning strategies. 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 income tax provision in the period in which such determination is made. Comprehensive Income (Loss), net Comprehensive income (loss) is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources. Comprehensive income (loss) is comprised of all components of net income (loss) and the changes in the components of accumulated other comprehensive income (loss) within stockholders’ equity. The Company’s accumulated other comprehensive income (loss) includes unrealized gains and losses from its available-for-sale securities that are not considered other-than-temporarily impaired, net of taxes. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the "FASB") issued an accounting standards update related to revenue from contracts with customers, which supersedes the revenue recognition requirements in the current Accounting Standards Codification. This standard is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015 the FASB voted to defer the effective date of this standard by one year. Additionally, in March 2016 the FASB issued additional information that clarifies the implementation guidance on principal versus agent considerations. The effective date of this standard will be the first quarter of fiscal 2018 using one of two retrospective application methods. The Company is currently evaluating the potential impact of this guidance on its condensed consolidated financial statements. In July 2015, the FASB issued an accounting standard update related to disclosure of inventory, to provide guidance on management’s responsibility to measure inventory at the lower of cost and net realizable value. The effective date of this standard will be for annual periods ending after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of this guidance on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued an accounting standard update which amends the existing accounting standards for leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification. Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. The effective date of this update will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 using a modified retrospective transition method with early adoption permitted. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements. In March 2016, the FASB issued an accounting standard related to Improvements to Employee Share-Based Payment Accounting, which amends Compensation – Stock Compensation. This standard includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The effective date of this standard will be for annual periods ending after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is evaluating the impact of this guidance on its condensed consolidated financial statements. In June 2016, the FASB issued new guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The effective date of this standard will be for annual periods ending after December 15, 2019, and interim periods within that reporting period. Early adoption is permitted starting in annual periods ending after December 15, 2018. The Company is evaluating the impact of this guidance on its condensed consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 02, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company records its financial assets and liabilities at fair value. The inputs used in the valuation methodologies in measuring fair value are defined in the fair value hierarchy as follows: 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 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 recognizes transfers among Level 1, Level 2 and Level 3 classifications as of the actual date of the events or change in circumstances that caused the transfers. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying value of the Company’s accounts receivable, accounts payable and accrued liabilities approximates their fair value due to the short-term nature of these instruments. Cash, Cash Equivalents and Short-Term Investments The Company measures its financial instruments at fair value on a recurring basis. The components of the Company's cash, cash equivalents and short-term investments are as follows (in thousands): Fair Value Measured Using July 2, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents: Money market funds $ 92,944 $ 92,944 $ — $ — Commercial paper 2,998 — 2,998 — Total cash equivalents $ 95,942 $ 92,944 $ 2,998 $ — Cash 39,300 Total cash and cash equivalents $ 135,242 Short-term investments: Corporate debt securities $ 3,010 $ — $ 3,010 $ — Commercial paper 9,976 — 9,976 — U.S. agency debt securities 35,314 — 35,314 — U.S. government securities 44,539 — 44,539 — Total short-term investments $ 92,839 $ — $ 92,839 $ — Fair Value Measured Using December 26, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents: Money market funds $ 83,852 $ 83,852 $ — $ — Commercial paper 4,497 — 4,497 — Total cash equivalents $ 88,349 $ 83,852 $ 4,497 $ — Cash 31,863 Total cash and cash equivalents $ 120,212 Short-term investments: Corporate debt securities $ 14,560 $ — $ 14,560 $ — Commercial paper 8,986 — 8,986 — U.S. agency debt securities 29,008 — 29,008 — U.S. government securities 37,447 — 37,447 — Total short-term investments $ 90,001 $ — $ 90,001 $ — The Company considers all highly liquid investments with maturity of three months or less at the time of purchase to be cash equivalents. The Company holds money market funds that invest primarily in high-quality short-term money-market instruments, and these funds are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Company presents available-for-sale investments as current assets as they are available for the Company's current operations. Money market funds have been classified as Level 1 because these securities are valued based upon quoted prices in active markets. The Company’s Level 2 assets are priced using quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data. Observable inputs reflect market data obtained from independent sources. The Company did not have any transfers between Level 1 and Level 2 in the six months ended July 2, 2016 . As of July 2, 2016 and December 26, 2015 , the Company had no liabilities measured at fair value. Financial assets measured at amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment categories are summarized as follows (in thousands): As of July 2, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Money market funds $ 92,944 $ — $ — $ 92,944 Commercial paper 2,998 — — 2,998 Cash 39,300 — — 39,300 Total cash and cash equivalents $ 135,242 $ — $ — $ 135,242 Short-term investments: Corporate debt securities $ 3,010 $ — $ — $ 3,010 Commercial paper 9,976 — — 9,976 U.S. agency debt securities 35,294 20 — 35,314 U.S. government securities 44,492 47 — 44,539 Total short-term investments $ 92,772 $ 67 $ — $ 92,839 As of December 26, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Money market funds $ 83,852 $ — $ — $ 83,852 Commercial paper 4,497 — — 4,497 Cash 31,863 — — 31,863 Total cash and cash equivalents $ 120,212 $ — $ — $ 120,212 Short-term investments: Corporate debt securities $ 14,570 $ — $ (10 ) $ 14,560 Commercial paper 8,986 — — 8,986 U.S. agency debt securities 29,031 — (23 ) 29,008 U.S. government securities 37,461 3 (17 ) 37,447 Total short-term investments $ 90,048 $ 3 $ (50 ) $ 90,001 The Company’s realized gain was immaterial in the six months ended July 2, 2016 . There were no securities in a material continuous loss position for 12 months or longer as of July 2, 2016 or December 26, 2015 . The following table summarizes the estimated fair value of the Company’s debt investments, designated as available-for-sale classified by the contractual maturity date of the security (in thousands): As of July 2, 2016 December 26, 2015 Due within one year $ 188,781 $ 177,852 Due between one and five years — 498 Total cash equivalents and short-term investments $ 188,781 $ 178,350

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jul. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories Inventories are comprised of the following (in thousands): As of July 2, 2016 December 26, 2015 Raw materials $ 44 $ 76 Finished goods 6,281 3,737 Total inventories $ 6,325 $ 3,813 Accrued Liabilities Accrued liabilities are comprised of the following (in thousands): As of July 2, 2016 December 26, 2015 Accrued employee related costs $ 17,385 $ 25,392 Accrued inventory and other purchases 2,512 2,452 Accrued taxes payable 2,103 1,918 Accrued professional services 815 1,655 Other accruals 5,242 5,917 Total accrued liabilities $ 28,057 $ 37,334 Accrued Warranty Warranty activity and accrued warranty is comprised of the following (in thousands): Six Months Ended July 2, 2016 June 27, 2015 Accrued warranty balance at beginning of period $ 807 $ 875 Accrual for warranty during the period 982 593 Actual costs incurred (809 ) (469 ) Accrued warranty balance at end of period $ 980 $ 999 As of Warranty accrual reported as: July 2, 2016 December 26, 2015 Current $ 639 $ 490 Non-current 341 317 Total accrued warranty $ 980 $ 807 Deferred Revenue Deferred revenue is comprised of the following (in thousands): As of July 2, 2016 December 26, 2015 Deferred service revenue $ 79,854 $ 73,454 Deferred product revenue 3 8,677 Total deferred revenue $ 79,857 $ 82,131 The change in deferred product revenue as of July 2, 2016 as compared to December 26, 2015 is associated with the Company's transition to a centralized global fulfillment model. Prior to this transition deferred product revenue primarily represented the value of stocking inventory that had been at various distributor locations, which is now centralized by the Company. Accumulated Other Comprehensive (Loss) Income Accumulated other comprehensive (loss) income consists of unrealized gains and losses from available-for-sale securities. The following summarizes the activity within accumulated other comprehensive (loss) income (in thousands): Accumulated Other Comprehensive (Loss) Income Net Unrealized (Losses) Gains Balance as of December 26, 2015 $ (47 ) Available-for-sale securities: Unrealized gains 114 Total other comprehensive income 114 Balance as of July 2, 2016 $ 67 There was no material tax impact on the unrealized gains or losses and total other comprehensive income. There were no material reclassifications out of accumulated other comprehensive (loss) income into the condensed consolidated statements of operations in the six months ended July 2, 2016 and June 27, 2015 .

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments The Company leases office space for its current headquarters in Santa Clara, California and its United Kingdom subsidiary under non-cancelable operating leases that expire at various times through fiscal 2019. The Company has also entered into lease agreements for additional office space in Australia, Hong Kong, Japan, India, Mexico, Russia, Singapore, and the United Arab Emirates. The Company recognizes rent expense on a straight-line basis over the lease period. Rent expense related to the Company’s operating leases was $1.0 million and $0.8 million for the three months ended July 2, 2016 and June 27, 2015 , respectively, and $1.9 million and $1.5 million for the six months ended July 2, 2016 and June 27, 2015 , respectively Future minimum lease payments under non-cancelable operating leases as of July 2, 2016 were as follows (in thousands): Fiscal Year: 2016 (remaining six months) $ 2,134 2017 4,013 2018 1,292 2019 108 Total $ 7,547 Purchase Commitments The Company has agreements with contract manufacturers for the manufacturing of its products. The agreement with its primary contract manufacturer allows the contract manufacturer to procure components on the Company’s behalf based upon a production forecast provided by the Company. The Company may be obligated to purchase component inventory that is non-cancellable. As of July 2, 2016 and December 26, 2015 , the Company’s non-cancellable purchase commitments for such component inventory were $13.7 million and $12.0 million , respectively. Legal Proceedings From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. The Company is not currently a party to any legal proceedings the outcome of which, if determined adversely to the Company, would individually or in the aggregate be expected to have a material adverse effect on its business, operating results, financial condition or cash flows. Indemnification Obligations Under the indemnification provisions of its standard sales related contracts, the Company agrees to defend its customers against third-party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks, or trade secrets, and to pay judgments entered on such claims. The Company’s exposure under these indemnification provisions is generally limited to the total amount paid by its customer under the agreement. However, certain agreements include indemnification provisions that could potentially expose the Company to losses in excess of the amount received under the agreement. The Company has not incurred any costs as a result of such indemnifications and has not accrued any liabilities related to such obligations in its consolidated financial statements. In addition, the Company indemnifies its officers, directors and certain key employees while they are serving in good faith in the company capacities. To date, there have been no claims under any indemnification provisions.

Preferred Stock and Stockholder

Preferred Stock and Stockholders' Equity	6 Months Ended
	Jul. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Preferred Stock and Stockholders' Equity	Stockholders’ Equity Preferred Stock The Company has authorized 20,000,000 shares of undesignated preferred stock, $0.0001 par value per share. As of July 2, 2016 and December 26, 2015 , the Company had no shares of preferred stock issued or outstanding. Common Stock The Company has authorized 1,000,000,000 shares of common stock, $0.0001 par value per share. Each holder of common stock is entitled to one vote for each share of common stock held. Cumulative voting for the election of directors is not provided in the Company’s amended and restated certificate of incorporation. The Company’s common stock is not entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of common stock are entitled to receive dividends out of funds legally available if the Company's board of directors (the "Board"), in its discretion, determines to issue dividends and then only at the times and in the amounts that the Board may determine. As of July 2, 2016 and December 26, 2015 , the Company had 35,260,909 and 34,323,457 shares of common stock issued and outstanding, respectively. Treasury Stock As of July 2, 2016 and December 26, 2015 , the Company had 8,109,848 shares of treasury stock outstanding, with a carrying value of $12.5 million , or $1.53 per share, within stockholders’ equity on its condensed consolidated balance sheet. The treasury stock was purchased in fiscal 2010 pursuant to a purchase and redemption agreement. Equity Award Plans 2013 Equity Incentive Plan In May 2013, the Company adopted the 2013 Equity Incentive Plan (the “2013 Equity Plan”). All authorized but unissued shares of the Company’s 2012 Unit Option Plan (the "2012 Plan") were added to the 2013 Equity Plan’s authorized pool in June 2013. A maximum of 2,929,481 shares of common stock were initially authorized for future issuance, plus up to an additional 4,967,172 shares upon termination of awards under the 2012 Plan. In addition, the 2013 Equity Plan is subject to an annual increase on the first day of each of the Company’s fiscal years, by an amount equal to the least of (i) 1,464,740 shares, (ii) 5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year, or (iii) such other amount as determined by the Board. In each of the fiscal years ended December 27, 2014 and December 26, 2015, an additional 1,464,740 shares of common stock were authorized for future issuance under the 2013 Equity Plan and an additional 1,464,740 shares were authorized during the six months ended July 2, 2016 . Vested but unexercised options, under the 2013 Equity Plan, expire three months after termination of service with the Company. As of July 2, 2016 , outstanding awards under the 2013 Equity Plan and the 2012 Plan covered 3,719,025 shares and 806,215 shares of the Company's common stock, respectively. The 2013 Equity Plan permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance units and performance shares to employees, directors and consultants of the Company. Employee Stock Purchase Plan In conjunction with the completion of its initial public offering (the "IPO") in June 2013, the Company adopted the 2013 Employee Stock Purchase Plan (the “ESPP”). A maximum of 439,422 shares were initially authorized for future issuance. In addition, the ESPP is subject to an annual increase on the first day of each of the Company's fiscal years, by an amount equal to the least of (i) 439,422 shares, (ii) 1.5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year, or (iii) such other amount as determined by the Board. In each of the fiscal years ended December 27, 2014 and December 26, 2015, an additional 439,422 shares of common stock were authorized for future issuance under the ESPP and an additional 439,422 shares were authorized during the six months ended July 2, 2016 . Eligible employees can purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to plan limitations. Employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock (i) at the date of commencement of the offering period or (ii) at the last day of the purchase period. The ESPP provides for a 24 -month offering period comprised of four purchase periods of approximately six months . The offering periods are scheduled to start on the first trading day on or after February 15 and August 15 of each year, except for the first offering period, which commenced on the first trading day upon the completion of the Company’s IPO, or June 12, 2013, and ended on August 17, 2015. In accordance with the terms of the Company's 2013 Employee Stock Purchase Plan (the "ESPP"), an additional 439,422 shares were authorized for future issuance during the six months ended July 2, 2016 . The Company recorded stock-based compensation expense for its ESPP of $0.5 million and $1.4 million for the three and six months ended July 2, 2016 , respectively, and $0.7 million and $1.4 million for the three and six months ended June 27, 2015 , respectively. For the six months ended July 2, 2016 there was one purchase period that resulted in the issuance of 297,526 shares of common stock at a weighted average purchase price of $11.32 per share. Stock Options Stock options granted under the 2013 Equity Plan and formerly under the 2012 Plan (together, the “Option Plans”), are generally subject to a four -year vesting period whereby stock options become 25% vested on the first anniversary of the grant date and then ratably monthly thereafter through the end of the vesting period. Vested stock options may be exercised up to ten years from the vesting commencement date, with certain options granted in fiscal 2015 expiring seven years from the date of grant. Under the 2012 Plan, vested but unexercised stock options expire 30 days after termination of service with the Company. Under the 2013 Equity Plan, vested but unexercised stock options expire three months after termination of service with the Company. The following table summarizes the stock option activity under the Company’s Option Plans: Number of Weighted- Weighted- Aggregate (in thousands) Balance — December 26, 2015 2,170,720 $ 15.73 7.14 $ 24,910 Options granted 70,000 $ 31.16 Options exercised (389,592 ) $ 10.59 Options canceled (44,175 ) $ 20.28 Balance — July 2, 2016 1,806,953 $ 17.33 6.73 $ 36,236 Vested and expected to vest — July 2, 2016 1,734,754 $ 17.15 6.74 $ 35,102 Exercisable — July 2, 2016 1,132,275 $ 15.38 6.72 $ 24,913 Aggregate intrinsic value represents the difference between the exercise price of the awards and the Company’s fair value per share of $37.38 and $26.82 as of July 2, 2016 and December 26, 2015 , respectively, for the total number of underlying options. As of July 2, 2016 and December 26, 2015 , there were 436 and 2,611 shares of performance-based common stock awards outstanding, respectively, of which zero and 1,488 , respectively, were not yet vested and subject to performance-based vesting criteria. Restricted Stock Unit Activity RSUs generally vest over a period of one to four years. RSU vesting dates are determined by the Company. The vesting is subject to the employee’s continuing service with the Company over that period. Until vested, RSUs do not have the voting or dividend participation rights of the Company’s common stock and the shares of the Company’s common stock underlying the awards are not considered issued and outstanding. The cost of RSUs is determined using the fair value of the Company’s common stock on the date of the grant. The following table summarizes the RSU activity under the Company’s Option Plans: Number of Weighted- Weighted- Aggregate (in thousands) Balance - December 26, 2015 1,779,339 $ 22.64 1.53 $ 47,722 RSUs granted 1,467,501 $ 25.08 RSUs vested (395,103 ) $ 22.67 RSUs canceled (133,450 ) $ 23.72 Balance - July 2, 2016 2,718,287 $ 23.90 1.58 $ 101,610 Vested and expected to vest — July 2, 2016 2,311,862 $ 23.87 1.48 $ 86,417 Aggregate intrinsic value for RSUs represents the Company’s fair market value per share of $37.38 and $26.82 , as of July 2, 2016 and December 26, 2015 , respectively, for the total number of underlying RSUs. Performance-Based Awards During the six months ended July 2, 2016 , the Company awarded 193,000 shares of performance-based RSUs. The vesting conditions of these awards are tied to the Company's fiscal 2016 revenue and operating income performance. These RSUs can vest from 0% to 200% of the target grant, based on attainment of the performance goals. The target achievement percentage will be known as of December 31, 2016, until such time each quarterly period, the Company estimates the probability of the achievement of these performance goals and recognizes any related stock based compensation expense. If the achievement of such performance goals is not probable, no compensation expense is recognized. For the three and six months ended July 2, 2016 , the Company has recorded $1.2 million and $1.6 million , respectively in stock based compensation expense related to these RSU awards. Stock-Based Compensation Expense The fair value of stock options and ESPP purchase rights is estimated on the date of grant using the Black-Scholes option-pricing model. The fair values of the option awards and ESPP purchase rights granted and the assumptions used in the Black-Scholes option pricing model are summarized as follows: Three Months Ended Six Months Ended July 2, June 27, July 2, June 27, Stock option awards: Expected term (in years) 4.6 0 4.6 4.6 Risk-free interest rate 1.4% 0 1.4% 0.016 Expected volatility 76.1% 0 76.1% 0.5604 Expected dividend rate —% —% —% —% Grant date fair value per award $18.62 0 $18.62 10.11 ESPP purchase right: Expected term (in years) 0.50 - 2.0 0.50 - 2.0 0.50 - 2.0 0.50 - 2.0 Risk-free interest rate 0.42% - 0.74% 0.07% - 0.70% 0.42% - 0.74% 0.07% - 0.70% Expected volatility 55.8% - 67.2% 37.6% - 50.3% 55.8% - 67.2% 37.6% - 50.3% Expected dividend rate —% —% —% —% Grant date fair value per share $7.75 - $12.26 $5.48 - $9.18 $7.75 - $12.26 $5.48 - $9.18 The following table summarizes the stock-based compensation expense recorded in the Company’s condensed consolidated statement of operations (in thousands): Three Months Ended Six Months Ended July 2, June 27, July 2, June 27, Cost of revenue $ 538 $ 510 $ 1,008 $ 1,059 Research and development 3,457 2,609 6,403 4,705 Sales and marketing 3,448 2,812 5,740 5,260 General and administrative 3,162 2,655 5,629 4,905 Total stock-based compensation expense $ 10,605 $ 8,586 $ 18,780 $ 15,929 As of July 2, 2016 , unrecognized compensation expense related to stock options, RSUs and ESPP purchase rights, net of estimated forfeitures, was $2.7 million , $30.3 million and $1.4 million , respectively.

Defined Contribution Plans

Defined Contribution Plans	6 Months Ended
	Jul. 02, 2016
Postemployment Benefits [Abstract]
Defined Contribution Plans	Defined Contribution Plans The Company’s contributions to the 401(k) defined contribution plan, which are expensed immediately as compensation costs, were $0.5 million and $0.4 million for the three months ended July 2, 2016 and June 27, 2015 , respectively, and $1.3 million and $0.8 million for the six months ended July 2, 2016 and June 27, 2015 , respectively.

Income Tax

Income Tax	6 Months Ended
	Jul. 02, 2016
Income Tax Disclosure [Abstract]
Income Tax	Income Tax The Company recorded an income tax benefit of $27.9 million and $27.3 million for the three and six months ended July 2, 2016 , respectively, and an income tax provision of $0.1 million and $0.2 million for the three and six months ended June 27, 2015 , respectively. The income tax benefit for the three and six months ended July 2, 2016 represents the release of $30.5 million of the Company’s existing valuation allowance against its U.S. deferred tax assets and additional foreign income tax expense. The Company considered all available positive and negative evidence in making a determination to release a portion of its existing valuation allowance. Such evidence included, among others, the Company’s history of profitability and losses, jurisdictional income recognition trends, forecasted income by jurisdiction and achievement of three years of cumulative taxable income in the U.S. federal tax jurisdiction as of July 2, 2016. Therefore, the Company determined that there is sufficient positive evidence to conclude that it is more likely than not that it will utilize its U.S. deferred tax assets. Included in the net deferred tax asset balance is a $3.7 million valuation allowance that relates to research and development credits in a jurisdiction with a history of credits in excess of taxable profits. As a result of the valuation allowance release, an unreserved deferred tax asset of $31.0 million is reflected on the accompanying condensed consolidated balance sheet as of July 2, 2016. The related $31.0 million effect on the accompanying condensed consolidated statement of operations for the fiscal period ended July 2, 2016 is a non-cash income tax benefit. The Company files annual income tax returns in multiple tax jurisdictions on a worldwide basis. A number of years may lapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcomes. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. As of July 2, 2016, changes to the Company's uncertain tax positions in the next 12 months that are reasonably possible are not expected to have a material impact on the Company's financial position or results of operations. The Company recognizes interest and penalties related to uncertain tax positions as part of the income tax provision. To date, no such interest and penalties have been accrued.

Net Income (Loss) per Share

Net Income (Loss) per Share	6 Months Ended
	Jul. 02, 2016
Earnings Per Share [Abstract]
Net Income (Loss) per Share	Net Income (Loss) per Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. Due to the net loss incurred in the six months ended June 27, 2015 , potential dilutive securities were excluded from the calculation of diluted net loss per share attributable to common stockholders for such period as their effect was anti-dilutive. The following table presents the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except per share data): Three Months Ended Six Months Ended July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 Numerator: Net income (loss) attributable to common stockholders $ 33,959 $ 38 $ 36,930 $ (657 ) Denominator: Weighted average shares used for basic net income (loss) per share computation 35,146 33,429 34,878 33,203 Weighted average effect of dilutive securities: Stock options 668 738 639 — RSUs 1,172 1,079 1,045 — Performance-based Units 93 — 53 — ESPP purchase rights 183 420 177 — Weighted average shares used for diluted net income (loss) per share computation 37,262 35,666 36,792 33,203 Net income (loss) per share attributable to common stockholders: Basic $ 0.97 $ — $ 1.06 $ (0.02 ) Diluted $ 0.91 $ — $ 1.00 $ (0.02 ) The weighted average number of shares outstanding used in the computation of diluted net income (loss) per share does not include the effect of the following shares of potentially outstanding common stock because the effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended Six Months Ended July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 Equity awards to purchase common stock 202 1,058 278 4,771

Segment Information

Segment Information	6 Months Ended
	Jul. 02, 2016
Segment Reporting [Abstract]
Segment Information	Segment Information Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the chief operating decision maker in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker is its chief executive officer. The chief executive officer reviews financial information presented on a consolidated basis, for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, or plans for levels or components below the consolidated unit level. Accordingly, the Company operates as a single reportable segment. The following table summarizes the Company’s revenue by geographic region, based on the location to where the product was shipped (in thousands): Three Months Ended Six Months Ended July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 United States $ 60,027 $ 37,798 $ 112,474 $ 70,431 Rest of Americas 1,807 2,957 4,823 6,048 Europe, Middle East and Africa 6,896 6,780 13,979 14,262 Asia Pacific 6,373 3,911 11,038 7,558 Total $ 75,103 $ 51,446 $ 142,314 $ 98,299 The Company’s long-lived assets by geographic region are summarized as follows (in thousands): As of July 2, 2016 December 26, 2015 United States $ 9,701 $ 9,148 Other 974 268 Total $ 10,675 $ 9,416

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 02, 2016
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The Company prepared its condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 26, 2015 . There have been no changes to the Company’s significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on the Company’s condensed consolidated financial statements and related notes.
Fiscal Period Policy	The Company has a 52 or 53-week fiscal year that ends on the last Saturday in December. Fiscal 2015 was a 52-week fiscal year ending on December 26, 2015 and each quarter therein was 13-week quarter. Fiscal 2016 is a 53-week fiscal year ending on December 31, 2016, with the first quarter being a 14-week quarter which ended on April 2, 2016 and each subsequent quarter being a 13-week quarter. Fiscal 2017 will be a 52-week fiscal year ending on December 30, 2017, with each quarter therein being a 13-week quarter.
Unaudited Interim Financial Statements	Unaudited Interim Financial Statements The accompanying unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include normal recurring adjustments, necessary to fairly state the Company’s financial position as of July 2, 2016 , its results of operations and comprehensive income (loss) for the three and six months ended July 2, 2016 and June 27, 2015 , respectively, and cash flows for the six months ended July 2, 2016 and June 27, 2015 . The financial data and the other financial information disclosed in the accompanying notes to the condensed consolidated financial statements related to these three and six month periods are also unaudited. The fiscal year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations in the three and six months ended July 2, 2016 are not necessarily indicative of the results to be expected for the full fiscal year or any other future periods.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain 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 reported periods. On an ongoing basis, the Company evaluates its estimates, including but not limited to those related to revenue recognition, allowance for doubtful accounts, warranty reserve, excess and obsolete inventory write-downs, stock-based compensation expense, depreciable useful lives and income taxes. The Company bases its estimates on historical experience, projections for future performance and other assumptions that it believes to be reasonable under the circumstances. Actual results could differ materially from those estimates.
Cash Equivalents and Marketable Securities	Cash Equivalents and Marketable Securities All highly liquid marketable securities with original maturities of less than three months at the date of purchase are considered to be cash equivalents. Marketable securities are generally classified as available-for-sale for use in current operations, if required, and are reported at fair value, with unrealized gains and losses, net of tax, presented as a separate component of stockholders’ equity within accumulated other comprehensive income (loss). All realized gains and losses and unrealized losses resulting from declines in fair value that are other-than-temporary are recorded in other income (expense), net, in the period of occurrence. The Company uses the specific identification method to determine the realized gains and losses on investments. For all investments in marketable securities, the Company assesses whether an impairment is other-than-temporary. If the fair value of a security is less than its amortized cost basis, an impairment is considered other-than-temporary if (i) the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its entire amortized cost basis, or (ii) the Company does not expect to recover the entire amortized cost of the security. If an impairment is considered other-than-temporary based on condition (i), the entire difference between the amortized cost and the fair value of the security is recognized in earnings. If an impairment is considered other-than-temporary based on condition (ii), the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the security, will be recognized in earnings, and the amount relating to all other factors will be recognized in accumulated other comprehensive income (loss). The Company evaluates both qualitative and quantitative factors such as duration and severity of the unrealized losses, credit ratings, default and loss rates of the underlying collateral, structure and credit enhancements to determine if a credit loss may exist.
Concentrations	Concentrations The Company operates in highly competitive and rapidly changing markets that could negatively impact the Company’s operating results. A number of components that meet the Company’s manufacturing requirements are available only from single source suppliers. In addition, the Company relies on one contract manufacturer to manufacture a substantial majority of its products. The inability of its single source suppliers and contract manufacturer to provide the Company with adequate supplies of high-quality components and products could cause a delay in order fulfillment, which could adversely affect the Company’s revenue, cost of revenue and operating results. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, short-term investments and accounts receivable. The Company currently invests the majority of its cash in high-grade government and corporate debt and maintains these investments with a limited number of major financial institutions in the United States that management believes are creditworthy. Such deposits may exceed the insured limits provided on them. The Company mitigates credit risk associated with its accounts receivable by performing ongoing credit evaluations of its customers and determines if it needs to establish an allowance for doubtful accounts for estimated losses based on management’s assessment of the collectability of customer accounts. The Company sells its products primarily through channel partners, including distributors and resellers, and directly to end-user customers. For the three and six months ended July 2, 2016 , one end-user customer accounted for 13% of revenue. For the three and six months ended June 27, 2015 , no end-user customer accounted for 10% or more of revenue.
Inventories	Inventories Inventory is valued at the lower of cost computed on a first-in, first-out basis, or market value. The Company writes down inventory in excess of forecasted demand over a certain period, as a component of cost of revenue. In these cases, inventory is reduced to estimated realizable value based on historical usage and expected demand. At the point of inventory write-down, a new lower-cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Inherent in the Company’s estimates of market value in determining inventory valuation are estimates related to economic trends, future demand for the Company’s products, and technical obsolescence of products. The Company uses a contract manufacturer to provide the majority of its manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, the Company enters into agreements with the contract manufacturer that either allow it to procure inventory based upon criteria as defined by the Company, or establish the parameters defining the Company’s requirements. A portion of the Company’s reported purchase commitments arising from these agreements consists of non-cancelable commitments. The Company records a liability for firm, non-cancelable and unconditional purchase commitments for quantities in excess of its future demand forecasts consistent with the valuation of the Company’s excess and obsolete inventory.
Revenue Recognition	Revenue Recognition The Company generates product revenue from sales of traffic visibility solutions to customers as well as service revenue from sales of maintenance and support contracts and other billable services. The Company typically sells products and services in a single transaction. The Company’s typical arrangement consists of the sale of products together with maintenance and support or a renewal of maintenance and support contracts. Billable services are billed in advance or when service is provided and performed as requested by customers. Under maintenance and support contracts, services are provided as needed by customers over the fixed arrangement term. The Company does not grant its customers a general right of return or any refund terms, except to two of the Company’s distributors which have stock rotation rights and in those cases, revenue is deferred until sell-through has occurred. Revenue from distributors is reported net of rebates, discounts and any other sales incentives. The Company recognizes revenue when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the sales price is fixed or determinable and (4) collectability is reasonably assured. When sales arrangements contain multiple elements and software and non-software components that function together to deliver the products’ essential functionality, the Company allocates revenue to each element based on a selling price hierarchy: vendor-specific objective evidence ("VSOE"), if available, third party evidence ("TPE"), of the selling price if VSOE is not available, or best estimated selling prices ("BESP") if neither VSOE nor TPE is available. When the Company enters into arrangements to provide more than one product or service, or what the Company refers to as multiple deliverables, these arrangements are evaluated to determine if the multiple elements consist of more than one unit of accounting and can be separated accordingly. Based on separation criteria under the guidance, deliverables in multiple element arrangements can be segregated into separate units of accounting if they have value to the customer on a standalone basis. If deliverables can be separated into individual units of accounting, then the arrangement consideration is allocated among deliverables based on their relative selling price. Revenue from each deliverable is recognized when all requirements are met for that specific deliverable. If deliverables cannot be separated into separate units of accounting, then the arrangement will be accounted for as a single unit of accounting and revenue will be recognized when all requirements are met for all deliverables within the arrangement. The Company has established VSOE for maintenance and support contracts since the majority of selling prices fall within a narrow range when sold separately. TPE is not used since this information is not widely available in the market and the Company does not consider its products to be similar to or interchangeable with its competitors’ products in standalone sales to similarly situated customers. For deliverables with no established VSOE, such as standard product offerings, the Company determines the standalone selling price for such deliverables by establishing BESP, which incorporates historical selling prices, the effect of market conditions, gross margin objectives and pricing practices, as well as entity specific factors. The Company monitors and evaluates BESP on a regular basis to ensure that changes in circumstances are accounted for in a timely manner. Service revenue is recognized ratably over the contractual support period, which is typically one year but can be up to 10 years . In accordance with contractual provisions, the Company may offer cooperative marketing funds based on a fixed dollar percentage of product sales to certain of its channel partners or to fund specific marketing activities for these partners. The Company records such amounts as a reduction to revenue or, if the Company has evidence of fair value of the separable and identifiable benefit received, as a marketing expense. Revenue is recorded net of sales taxes. Costs of products not yet recognized as revenue are deferred and included as a component of prepaid expenses and other current assets on the condensed consolidated balance sheets.
Shipping and Handling Charges	Shipping and Handling Charges Shipping and handling costs are recorded in cost of revenue in the period products are shipped to customers.
Warranty	Warranty The Company provides five -year warranties against defects in manufacturing on its hardware products. The Company accrues for potential liability claims as a component of cost of product revenue based on historical trends of product failure rates and the expected material and labor costs to provide warranty services. The accrued warranty balance is reviewed periodically for adequacy and is included in accrued liabilities and in other non-current liabilities on the condensed consolidated balance sheets.
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense related to stock-based transactions, including employee and director awards, as well as employee stock purchase plan purchase rights (“ESPP purchase rights”), is measured and recognized in the consolidated financial statements based on the fair value of the award on the grant date. Stock-based compensation expense related to equity awards that can be settled in cash is measured based on the fair value on each balance sheet date until the settlement dates. The fair value of option awards and ESPP purchase rights is estimated using the Black-Scholes option-pricing model. This model requires assumptions including the market value of the Company’s common stock, expected volatility, expected term of the award, expected dividend yield and risk-free interest rate. Expected term for stock option awards is determined based on the mid-point of the vest period and the contractual period of each option award due to the Company’s limited historical stock option exercise data. Expected volatility is established based on the historical volatility of the common stock of Gigamon, combined with the historical volatility of a peer group of publicly traded companies. Stock-based compensation expense, net of estimated forfeitures, is recognized on a graded-vesting basis over the requisite service periods of the awards, unless a performance-based condition exists. Expenses for performance-based awards are recognized when the issuance of the underlying awards are probable, which is re-measured at each reporting period and the expense is trued up accordingly. Expenses for consultant awards are measured based on the fair value on the vest date. Expenses related to the option grants to consultants that have not been vested as of the reporting date are marked to market until the earlier of the commitment or the completion of the underlying performance. The Company estimates a forfeiture rate to calculate the stock-based compensation for its awards based on an analysis of its historical experience, analysis of employee turnover and other related factors. The Company is currently using two separate forfeiture rates, based on the classification of the employees.
Advertising Costs	Advertising Costs Expenses related to advertising of products are charged to sales and marketing expense as incurred. For all periods presented, advertising expenses were not material.
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized on a more likely than not basis. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income and the feasibility of any viable tax planning strategies. 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 income tax provision in the period in which such determination is made.
Comprehensive Income (Loss)	Comprehensive Income (Loss), net Comprehensive income (loss) is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources. Comprehensive income (loss) is comprised of all components of net income (loss) and the changes in the components of accumulated other comprehensive income (loss) within stockholders’ equity. The Company’s accumulated other comprehensive income (loss) includes unrealized gains and losses from its available-for-sale securities that are not considered other-than-temporarily impaired, net of taxes.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the "FASB") issued an accounting standards update related to revenue from contracts with customers, which supersedes the revenue recognition requirements in the current Accounting Standards Codification. This standard is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015 the FASB voted to defer the effective date of this standard by one year. Additionally, in March 2016 the FASB issued additional information that clarifies the implementation guidance on principal versus agent considerations. The effective date of this standard will be the first quarter of fiscal 2018 using one of two retrospective application methods. The Company is currently evaluating the potential impact of this guidance on its condensed consolidated financial statements. In July 2015, the FASB issued an accounting standard update related to disclosure of inventory, to provide guidance on management’s responsibility to measure inventory at the lower of cost and net realizable value. The effective date of this standard will be for annual periods ending after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of this guidance on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued an accounting standard update which amends the existing accounting standards for leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification. Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. The effective date of this update will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 using a modified retrospective transition method with early adoption permitted. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements. In March 2016, the FASB issued an accounting standard related to Improvements to Employee Share-Based Payment Accounting, which amends Compensation – Stock Compensation. This standard includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The effective date of this standard will be for annual periods ending after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is evaluating the impact of this guidance on its condensed consolidated financial statements. In June 2016, the FASB issued new guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The effective date of this standard will be for annual periods ending after December 15, 2019, and interim periods within that reporting period. Early adoption is permitted starting in annual periods ending after December 15, 2018. The Company is evaluating the impact of this guidance on its condensed consolidated financial statements.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jul. 02, 2016
Accounting Policies [Abstract]
Customers Representing Major Revenue and Accounts Receivable	The following customers represented more than 10% of total revenue or accounts receivable: Three Months Ended Six Months Ended July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 Percent of Revenue: Customer A (distributor) 32 % 48 % 34 % 43 % Customer B (distributor) 27 % 18 % 26 % 20 % Customer C (end-user) 13 % * 13 % * * Represents less than 10% of total revenues As of July 2, 2016 December 26, 2015 Percent of Accounts Receivable: Customer A (distributor) 16 % 19 % Customer B (distributor) 44 % 30 % Customer C (end-user) 10 % 11 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 02, 2016
Fair Value Disclosures [Abstract]
Components of Cash and Cash Equivalents	The Company measures its financial instruments at fair value on a recurring basis. The components of the Company's cash, cash equivalents and short-term investments are as follows (in thousands): Fair Value Measured Using July 2, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents: Money market funds $ 92,944 $ 92,944 $ — $ — Commercial paper 2,998 — 2,998 — Total cash equivalents $ 95,942 $ 92,944 $ 2,998 $ — Cash 39,300 Total cash and cash equivalents $ 135,242 Short-term investments: Corporate debt securities $ 3,010 $ — $ 3,010 $ — Commercial paper 9,976 — 9,976 — U.S. agency debt securities 35,314 — 35,314 — U.S. government securities 44,539 — 44,539 — Total short-term investments $ 92,839 $ — $ 92,839 $ — Fair Value Measured Using December 26, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents: Money market funds $ 83,852 $ 83,852 $ — $ — Commercial paper 4,497 — 4,497 — Total cash equivalents $ 88,349 $ 83,852 $ 4,497 $ — Cash 31,863 Total cash and cash equivalents $ 120,212 Short-term investments: Corporate debt securities $ 14,560 $ — $ 14,560 $ — Commercial paper 8,986 — 8,986 — U.S. agency debt securities 29,008 — 29,008 — U.S. government securities 37,447 — 37,447 — Total short-term investments $ 90,001 $ — $ 90,001 $ —
Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investments	Financial assets measured at amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment categories are summarized as follows (in thousands): As of July 2, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Money market funds $ 92,944 $ — $ — $ 92,944 Commercial paper 2,998 — — 2,998 Cash 39,300 — — 39,300 Total cash and cash equivalents $ 135,242 $ — $ — $ 135,242 Short-term investments: Corporate debt securities $ 3,010 $ — $ — $ 3,010 Commercial paper 9,976 — — 9,976 U.S. agency debt securities 35,294 20 — 35,314 U.S. government securities 44,492 47 — 44,539 Total short-term investments $ 92,772 $ 67 $ — $ 92,839 As of December 26, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Money market funds $ 83,852 $ — $ — $ 83,852 Commercial paper 4,497 — — 4,497 Cash 31,863 — — 31,863 Total cash and cash equivalents $ 120,212 $ — $ — $ 120,212 Short-term investments: Corporate debt securities $ 14,570 $ — $ (10 ) $ 14,560 Commercial paper 8,986 — — 8,986 U.S. agency debt securities 29,031 — (23 ) 29,008 U.S. government securities 37,461 3 (17 ) 37,447 Total short-term investments $ 90,048 $ 3 $ (50 ) $ 90,001
Schedule of Contractual Maturity Date of Marketable Securities	The following table summarizes the estimated fair value of the Company’s debt investments, designated as available-for-sale classified by the contractual maturity date of the security (in thousands): As of July 2, 2016 December 26, 2015 Due within one year $ 188,781 $ 177,852 Due between one and five years — 498 Total cash equivalents and short-term investments $ 188,781 $ 178,350

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jul. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventories	Inventories are comprised of the following (in thousands): As of July 2, 2016 December 26, 2015 Raw materials $ 44 $ 76 Finished goods 6,281 3,737 Total inventories $ 6,325 $ 3,813
Accrued Liabilities	Accrued liabilities are comprised of the following (in thousands): As of July 2, 2016 December 26, 2015 Accrued employee related costs $ 17,385 $ 25,392 Accrued inventory and other purchases 2,512 2,452 Accrued taxes payable 2,103 1,918 Accrued professional services 815 1,655 Other accruals 5,242 5,917 Total accrued liabilities $ 28,057 $ 37,334
Accrued Warranty Liability	Warranty activity and accrued warranty is comprised of the following (in thousands): Six Months Ended July 2, 2016 June 27, 2015 Accrued warranty balance at beginning of period $ 807 $ 875 Accrual for warranty during the period 982 593 Actual costs incurred (809 ) (469 ) Accrued warranty balance at end of period $ 980 $ 999 As of Warranty accrual reported as: July 2, 2016 December 26, 2015 Current $ 639 $ 490 Non-current 341 317 Total accrued warranty $ 980 $ 807
Deferred Revenue	Deferred revenue is comprised of the following (in thousands): As of July 2, 2016 December 26, 2015 Deferred service revenue $ 79,854 $ 73,454 Deferred product revenue 3 8,677 Total deferred revenue $ 79,857 $ 82,131
Accumulated Other Comprehensive Income	The following summarizes the activity within accumulated other comprehensive (loss) income (in thousands): Accumulated Other Comprehensive (Loss) Income Net Unrealized (Losses) Gains Balance as of December 26, 2015 $ (47 ) Available-for-sale securities: Unrealized gains 114 Total other comprehensive income 114 Balance as of July 2, 2016 $ 67

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jul. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Lease Payments Under Non-Cancelable Operating Leases	Future minimum lease payments under non-cancelable operating leases as of July 2, 2016 were as follows (in thousands): Fiscal Year: 2016 (remaining six months) $ 2,134 2017 4,013 2018 1,292 2019 108 Total $ 7,547

Preferred Stock and Stockhold22

Preferred Stock and Stockholders' Equity (Tables)	6 Months Ended
	Jul. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Options Activity	The following table summarizes the stock option activity under the Company’s Option Plans: Number of Weighted- Weighted- Aggregate (in thousands) Balance — December 26, 2015 2,170,720 $ 15.73 7.14 $ 24,910 Options granted 70,000 $ 31.16 Options exercised (389,592 ) $ 10.59 Options canceled (44,175 ) $ 20.28 Balance — July 2, 2016 1,806,953 $ 17.33 6.73 $ 36,236 Vested and expected to vest — July 2, 2016 1,734,754 $ 17.15 6.74 $ 35,102 Exercisable — July 2, 2016 1,132,275 $ 15.38 6.72 $ 24,913
Schedule of RSU Activity	The following table summarizes the RSU activity under the Company’s Option Plans: Number of Weighted- Weighted- Aggregate (in thousands) Balance - December 26, 2015 1,779,339 $ 22.64 1.53 $ 47,722 RSUs granted 1,467,501 $ 25.08 RSUs vested (395,103 ) $ 22.67 RSUs canceled (133,450 ) $ 23.72 Balance - July 2, 2016 2,718,287 $ 23.90 1.58 $ 101,610 Vested and expected to vest — July 2, 2016 2,311,862 $ 23.87 1.48 $ 86,417
Schedule of Fair Values of the Options Awards and ESPP Purchase Rights Granted	The fair values of the option awards and ESPP purchase rights granted and the assumptions used in the Black-Scholes option pricing model are summarized as follows: Three Months Ended Six Months Ended July 2, June 27, July 2, June 27, Stock option awards: Expected term (in years) 4.6 0 4.6 4.6 Risk-free interest rate 1.4% 0 1.4% 0.016 Expected volatility 76.1% 0 76.1% 0.5604 Expected dividend rate —% —% —% —% Grant date fair value per award $18.62 0 $18.62 10.11 ESPP purchase right: Expected term (in years) 0.50 - 2.0 0.50 - 2.0 0.50 - 2.0 0.50 - 2.0 Risk-free interest rate 0.42% - 0.74% 0.07% - 0.70% 0.42% - 0.74% 0.07% - 0.70% Expected volatility 55.8% - 67.2% 37.6% - 50.3% 55.8% - 67.2% 37.6% - 50.3% Expected dividend rate —% —% —% —% Grant date fair value per share $7.75 - $12.26 $5.48 - $9.18 $7.75 - $12.26 $5.48 - $9.18
Summary of Stock-based Compensation Expense	The following table summarizes the stock-based compensation expense recorded in the Company’s condensed consolidated statement of operations (in thousands): Three Months Ended Six Months Ended July 2, June 27, July 2, June 27, Cost of revenue $ 538 $ 510 $ 1,008 $ 1,059 Research and development 3,457 2,609 6,403 4,705 Sales and marketing 3,448 2,812 5,740 5,260 General and administrative 3,162 2,655 5,629 4,905 Total stock-based compensation expense $ 10,605 $ 8,586 $ 18,780 $ 15,929

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	6 Months Ended
	Jul. 02, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table presents the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except per share data): Three Months Ended Six Months Ended July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 Numerator: Net income (loss) attributable to common stockholders $ 33,959 $ 38 $ 36,930 $ (657 ) Denominator: Weighted average shares used for basic net income (loss) per share computation 35,146 33,429 34,878 33,203 Weighted average effect of dilutive securities: Stock options 668 738 639 — RSUs 1,172 1,079 1,045 — Performance-based Units 93 — 53 — ESPP purchase rights 183 420 177 — Weighted average shares used for diluted net income (loss) per share computation 37,262 35,666 36,792 33,203 Net income (loss) per share attributable to common stockholders: Basic $ 0.97 $ — $ 1.06 $ (0.02 ) Diluted $ 0.91 $ — $ 1.00 $ (0.02 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The weighted average number of shares outstanding used in the computation of diluted net income (loss) per share does not include the effect of the following shares of potentially outstanding common stock because the effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended Six Months Ended July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 Equity awards to purchase common stock 202 1,058 278 4,771

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 02, 2016
Segment Reporting [Abstract]
Revenue and Long-Lived Assets by Geographic Region	The following table summarizes the Company’s revenue by geographic region, based on the location to where the product was shipped (in thousands): Three Months Ended Six Months Ended July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 United States $ 60,027 $ 37,798 $ 112,474 $ 70,431 Rest of Americas 1,807 2,957 4,823 6,048 Europe, Middle East and Africa 6,896 6,780 13,979 14,262 Asia Pacific 6,373 3,911 11,038 7,558 Total $ 75,103 $ 51,446 $ 142,314 $ 98,299 The Company’s long-lived assets by geographic region are summarized as follows (in thousands): As of July 2, 2016 December 26, 2015 United States $ 9,701 $ 9,148 Other 974 268 Total $ 10,675 $ 9,416

Summary of Significant Accoun25

Summary of Significant Accounting Policies - Customers Representing Major Revenue and Accounts Receivable (Detail) - customer	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015	Dec. 26, 2015
Total Revenue
Concentration Risk [Line Items]
Number of customers accounting for more than 10% of revenue	1	0	1	0
Total Revenue | Customer A (distributor)
Concentration Risk [Line Items]
Concentration risk	32.00%	48.00%	34.00%	43.00%
Total Revenue | Customer B (distributor)
Concentration Risk [Line Items]
Concentration risk	27.00%	18.00%	26.00%	20.00%
Total Revenue | End User Customer [Member]
Concentration Risk [Line Items]
Concentration risk	13.00%		13.00%
Accounts Receivable | Customer A (distributor)
Concentration Risk [Line Items]
Concentration risk			16.00%		19.00%
Accounts Receivable | Customer B (distributor)
Concentration Risk [Line Items]
Concentration risk			44.00%		30.00%
Accounts Receivable | End User Customer [Member]
Concentration Risk [Line Items]
Concentration risk			10.00%		11.00%

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015	Dec. 26, 2015
Schedule Of Significant Accounting Policies [Line Items]
Inventory write-down	$ 309	$ 519	$ 484	$ 1,012
Deferred costs	$ 0		$ 0		$ 1,600
Product warranties period (in years)			5 years
Minimum
Schedule Of Significant Accounting Policies [Line Items]
Services revenue, recognition period (in years)			1 year
Maximum
Schedule Of Significant Accounting Policies [Line Items]
Services revenue, recognition period (in years)			10 years

Fair Value Measurements - Compo

Fair Value Measurements - Components of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
Cash and cash equivalents:
Cash and cash equivalents	$ 135,242	$ 120,212
Short-term investments:
Short-term investments	92,839	90,001
Money market funds
Cash and cash equivalents:
Cash and cash equivalents	92,944	83,852
Corporate debt securities
Short-term investments:
Short-term investments	3,010	14,560
Commercial paper
Cash and cash equivalents:
Cash and cash equivalents	2,998	4,497
Short-term investments:
Short-term investments	9,976	8,986
Cash Equivalents
Cash and cash equivalents:
Cash and cash equivalents	95,942	88,349
Cash
Cash and cash equivalents:
Cash and cash equivalents	39,300	31,863
U.S. agency debt securities
Short-term investments:
Short-term investments	35,314	29,008
U.S. government securities
Short-term investments:
Short-term investments	44,539	37,447
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds
Cash and cash equivalents:
Cash and cash equivalents	92,944	83,852
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities
Cash and cash equivalents:
Cash and cash equivalents		0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash Equivalents
Cash and cash equivalents:
Cash and cash equivalents	92,944	83,852
Significant Other Observable Inputs (Level 2)
Short-term investments:
Short-term investments	92,839	90,001
Significant Other Observable Inputs (Level 2) | Corporate debt securities
Short-term investments:
Short-term investments	3,010	14,560
Significant Other Observable Inputs (Level 2) | Commercial paper
Cash and cash equivalents:
Cash and cash equivalents	2,998	4,497
Short-term investments:
Short-term investments	9,976	8,986
Significant Other Observable Inputs (Level 2) | Cash Equivalents
Cash and cash equivalents:
Cash and cash equivalents	2,998	4,497
Significant Other Observable Inputs (Level 2) | U.S. agency debt securities
Short-term investments:
Short-term investments	35,314	29,008
Significant Other Observable Inputs (Level 2) | U.S. government securities
Short-term investments:
Short-term investments	$ 44,539	$ 37,447

Fair Value Measurements - Finan

Fair Value Measurements - Financial Instruments Measured at Amortized Costs, Gross Unrealized Gain, Gross Unrealized Loss and Fair Value by Significant Investment Categories (Detail) - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
Cash and Cash Equivalents
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	$ 135,242	$ 120,212
Fair Value	135,242	120,212
Cash and Cash Equivalents | Money market funds
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	92,944	83,852
Fair Value	92,944	83,852
Cash and Cash Equivalents | Commercial paper
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	2,998	4,497
Fair Value	2,998	4,497
Cash and Cash Equivalents | Cash
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	39,300	31,863
Fair Value	39,300	31,863
Short-term Investments
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	92,772	90,048
Gross Unrealized Gains	67	3
Gross Unrealized Losses	0	(50)
Fair Value	92,839	90,001
Short-term Investments | Corporate debt securities
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	3,010	14,570
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(10)
Fair Value	3,010	14,560
Short-term Investments | Commercial paper
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	9,976	8,986
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	9,976	8,986
Short-term Investments | U.S. agency debt securities
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	35,294	29,031
Gross Unrealized Gains	20	0
Gross Unrealized Losses	0	(23)
Fair Value	35,314	29,008
Short-term Investments | U.S. government securities
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	44,492	37,461
Gross Unrealized Gains	47	3
Gross Unrealized Losses	0	(17)
Fair Value	$ 44,539	$ 37,447

Fair Value Measurements - Contr

Fair Value Measurements - Contractual Maturity Date of Short-Term Investments (Detail) - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
Contractual Maturity Date of Short-Term Investments [Abstract]
Due within one year	$ 188,781	$ 177,852
Due between one and five years	0	498
Total	$ 188,781	$ 178,350

Balance Sheet Components - Inve

Balance Sheet Components - Inventories (Detail) - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 44	$ 76
Finished goods	6,281	3,737
Total inventories	$ 6,325	$ 3,813

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued employee related costs	$ 17,385	$ 25,392
Accrued inventory and other purchases	2,512	2,452
accrued taxes payable	2,103	1,918
Accrued professional services	815	1,655
Other accruals	5,242	5,917
Total accrued liabilities	$ 28,057	$ 37,334

Balance Sheet Components - Ac32

Balance Sheet Components - Accrued Warranty (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Dec. 26, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 807	$ 875
Accrual for warranty during the period	982	593
Actual costs incurred	(809)	(469)
Ending balance	980	999
Product Warranty Accrual, Balance Sheet Classification [Abstract]
Current			$ 639	$ 490
Non-current			341	317
Total accrued warranty	$ 807	$ 875	$ 980	$ 807

Balance Sheet Components - Accu

Balance Sheet Components - Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)	6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015
Net Unrealized (Losses) Gains
Beginning balance	$ (47,000)
Ending balance	67,000
Income Tax Provision
Tax impact on unrealized gains or losses		$ 0
Tax impact on total other comprehensive income	0
Reclassifications out of accumulated other comprehensive income	0	$ 0
Accumulated Net Unrealized Investment Gain (Loss)
Net Unrealized (Losses) Gains
Other comprehensive income (loss), before tax	$ 114,000

Balance Sheet Components -Defer

Balance Sheet Components -Deferred Revenues (Details) - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
Deferred Revenue Arrangement [Line Items]
Deferred Revenue	$ 79,857	$ 82,131
Sales Revenue, Services, Net [Member]
Deferred Revenue Arrangement [Line Items]
Deferred Revenue	79,854	73,454
Product [Member]
Deferred Revenue Arrangement [Line Items]
Deferred Revenue	$ 3	$ 8,677

Commitments and Contingencies -

Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands	Jul. 02, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2016 (remaining six months)	$ 2,134
2,017	4,013
2,018	1,292
2,019	108
Total	$ 7,547

Commitments and Contingencies36

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015	Dec. 26, 2015
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 1	$ 0.8	$ 1.9	$ 1.5
Purchase commitments with vendors	$ 13.7		$ 13.7		$ 12

Preferred Stock and Stockhold37

Preferred Stock and Stockholders' Equity - Preferred, Common and Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 02, 2016	Dec. 26, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common Stock Votes Per Share	$ 1
Common stock, shares issued	35,260,909	34,323,457
Treasury Stock, Shares	8,109,848	8,109,848
Treasury Stock, Value	$ 12,469	$ 12,469
Treasury Stock Acquired, Average Cost Per Share	$ 1.53	$ 1.53
Preferred stock, shares outstanding	0	0
Common stock, shares outstanding	35,260,909	34,323,457

Preferred Stock and Stockhold38

Preferred Stock and Stockholders' Equity - Equity Award Plans Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 02, 2016USD ($)$ / sharesshares	Jun. 27, 2015USD ($)	Jul. 02, 2016USD ($)Period$ / sharesshares	Jun. 27, 2015USD ($)	Dec. 27, 2014shares	Dec. 26, 2015$ / sharesshares	May 31, 2013shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense | $	$ 10,605	$ 8,586	$ 18,780	$ 15,929
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	1,806,953		1,806,953			2,170,720
ESPP purchase right:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Stock Ownership Plan (ESOP), Plan Description			The ESPP provides for a 24-month offering period comprised of four purchase periods of approximately six months. Employees are able to purchase shares at 85% of the lower of the market value of the Company's common stock (i) at the date of commencement of the offering period or (ii) at the last day of the purchase period.
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 1,400		$ 1,400
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	439,422		439,422				439,422
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized					439,422
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum			1.50%
Employee Stock Purchase Plan Maximum Percentage Of Compensation To Purchase Shares By Eligible Participants			15.00%
Employee Stock Purchase Plan Percentage Of Purchase Price From Market Value			85.00%
Employee Stock Purchase Plan Offered Period			24 months
Share-Based Compensation Arrangement by Share-based Payment Award, Number of Purchase Periods in subscription | Period			4
Share-Based Compensation Arrangement by Share-based Payment Award, Number of Purchase Periods | Period			1
Share-based Compensation Arrangement by Share-based Payment Award, Term of Purchase Period			6 months
Total stock-based compensation expense | $	$ 500	$ 700	$ 1,400	$ 1,400
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			297,526
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ / shares	$ 11.32		$ 11.32
Stock option awards:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Description			Vested options may be exercised up to ten years from the vesting commencement date.
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 2,700		$ 2,700
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 30,300		$ 30,300
Share Price | $ / shares	$ 37.38		$ 37.38			$ 26.82
Restricted Stock Units (RSUs) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			1 year
Restricted Stock Units (RSUs) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	436		436			2,611
Equity Incentive Plan Twenty Thirteen [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Description			(i) 1,464,740 shares, (ii) 5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year, or (iii) such other amount as determined by the Board. Vested but unexercised options, under the 2013 Equity Plan, expire three months after termination of service with the Company.
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,464,740		1,464,740			1,464,740	2,929,481
Share-based Compensation Arrangement by Share-based Payment Award, Other Share Increase (Decrease)			4,967,172
Share Based Compensation Arrangement By Share Based Payment Award Number Of Additional Shares Allowable For Future Authorization Each Year			1,464,740
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum			5.00%
Share Based Compensation Arrangement By Share Based Payment Award Options Maximum Exercisable Term For General Termination			3 months
Equity Incentive Plan Twenty Thirteen [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	3,719,025		3,719,025
Equity Incentive Plan Twenty Thirteen [Member] | Stock option awards:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period After Termination of Employment			3 months
Equity Incentive Plan Twenty Fifteen [Member] | Stock option awards:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			7 years
Equity Incentive Plan Twenty Twelve [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	806,215		806,215
Equity Incentive Plan Twenty Twelve [Member] | Stock option awards:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period After Termination of Employment			30 days
Unit Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Description			Vested options may be exercised up to ten years from the vesting commencement date, as defined in the Option Plan. Vested but unexercised options, under the Option Plan, expire 30 days after termination of employment with the Company.

Preferred Stock and Stockhold39

Preferred Stock and Stockholders' Equity - Stock Option Activity Table (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 02, 2016	Dec. 26, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	2,170,720
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	70,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	(389,592)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	(44,175)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	1,806,953	2,170,720
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	1,734,754
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	1,132,275
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 15.73
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	31.16
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	10.59
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	20.28
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	17.33	$ 15.73
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	17.15
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 15.38
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	6 years 8 months 23 days	7 years 1 month 20 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	6 years 8 months 26 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	6 years 8 months 19 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 24,910
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	36,236	$ 24,910
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	35,102
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 24,913
unvested performance shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	1,488
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	0	1,488

Preferred Stock and Stockhold40

Preferred Stock and Stockholders' Equity - RSU Activity Table (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jul. 02, 2016	Jul. 02, 2016	Dec. 26, 2015
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance - December 27, 2014		1,779,339
RSUs granted		1,467,501
RSUs vested		(395,103)
RSUs canceled		(133,450)
Balance - June 27, 2015	2,718,287	2,718,287	1,779,339
Vested and expected to vest — June 27, 2015	2,311,862	2,311,862
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value		$ 22.64
RSUs granted		25.08
RSUs vested		22.67
RSUs canceled		23.72
Balance - December 26, 2015	$ 23.90	23.90	$ 22.64
Vested and expected to vest — July 2, 2016	$ 23.87	$ 23.87
Weighted Average Remaining Contractual Life (Years)		1 year 6 months 29 days	1 year 6 months 10 days
Vested and expected to vest — July 2, 2016		1 year 5 months 23 days
Balance - December 26, 2015		$ 47,722
Balance - July 2, 2016	$ 101,610	101,610	$ 47,722
Vested and expected to vest — July 2, 2016	86,417	86,417
Performance Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	$ 1,200	$ 1,600
RSUs granted		193,000
Minimum | Performance Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted		0
Maximum | Performance Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted		2

Preferred Stock and Stockhold41

Preferred Stock and Stockholders' Equity - Fair Value of Option Awards amd ESPP Purchase Rights Granted (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
Stock option awards:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years 7 months 6 days	0 days	4 years 7 months 6 days	4 years 7 months 6 days
Risk-free interest rate	1.40%	0.00%	1.40%	1.60%
Expected volatility (percent)	76.10%	0.00%	76.10%	56.04%
Expected dividend rate (percent)	0.00%	0.00%	0.00%	0.00%
Grant date fair value per award	$ 18.62	$ 0	$ 18.62	$ 10.11
Maximum | ESPP purchase right:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years	2 years	2 years	2 years
Risk-free interest rate	0.74%	0.70%	0.74%	0.70%
Expected volatility (percent)	67.20%	50.30%	67.20%	50.30%
Share Based Compensation Arrangement By Share Based Payment Employee Purchase Plan Grants In Period Weighted Average Grant Date Fair Value For Period	$ 12.26	$ 9.18	$ 12.26	$ 9.18
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend rate (percent)	0.00%	0.00%	0.00%	0.00%
Minimum | ESPP purchase right:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months	6 months	6 months	6 months
Risk-free interest rate	0.42%	0.07%	0.42%	0.07%
Expected volatility (percent)	55.80%	37.60%	55.80%	37.60%
Share Based Compensation Arrangement By Share Based Payment Employee Purchase Plan Grants In Period Weighted Average Grant Date Fair Value For Period	$ 7.75	$ 5.48	$ 7.75	$ 5.48

Preferred Stock and Stockhold42

Preferred Stock and Stockholders' Equity - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015	Dec. 26, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	1,806,953		1,806,953		2,170,720
Total stock-based compensation expense	$ 10,605	$ 8,586	$ 18,780	$ 15,929
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	538	510	1,008	1,059
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	3,457	2,609	6,403	4,705
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	3,448	2,812	5,740	5,260
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	3,162	2,655	5,629	4,905
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 500	$ 700	$ 1,400	$ 1,400

Defined Contribution Plans - Ad

Defined Contribution Plans - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
Postemployment Benefits [Abstract]
Defined Benefit Plan, Contributions by Employer	$ 0.5	$ 0.4	$ 1.3	$ 0.8

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015	Dec. 26, 2015
Income Tax Disclosure [Abstract]
Income tax benefit (provision)	$ 27,899	$ (99)	$ 27,320	$ (187)
release valuation allowance	30,500
Deferred Taxes, Business Combination, Valuation Allowance, Available to Reduce Goodwill and Intangible Assets	3,700		3,700
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	$ 30,958		$ 30,958		$ 135

Net Income (Loss) per Share (De

Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net Income (Loss) Available to Common Stockholders, Basic	$ 33,959	$ 38	$ 36,930	$ (657)
Weighted Average Number of Shares Outstanding, Basic	35,146	33,429	34,878	33,203
Diluted (in shares)	37,262	35,666	36,792	33,203
Earnings Per Share, Basic	$ 0.97	$ 0	$ 1.06	$ (0.02)
Earnings Per Share, Diluted	$ 0.91	$ 0	$ 1	$ (0.02)
Stock option awards:
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	668	738	639	0
Option Plans Awards To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	202	1,058	278	4,771
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	1,172	1,079	1,045	0
Performance Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	93	0	53	0
ESPP purchase right:
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	183	420	177	0

Segment Information - Additiona

Segment Information - Additional Information (Detail)	6 Months Ended
	Jul. 02, 2016Segment
Segment Reporting [Abstract]
Number of segments	1

Segment Information - Revenue a

Segment Information - Revenue and Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015	Dec. 26, 2015
Segment Reporting Revenue Reconciling Item [Line Items]
Total revenue	$ 75,103	$ 51,446	$ 142,314	$ 98,299
Long-lived assets	10,675		10,675		$ 9,416
United States
Segment Reporting Revenue Reconciling Item [Line Items]
Total revenue	60,027	37,798	112,474	70,431
Long-lived assets	9,701		9,701		9,148
Rest of Americas
Segment Reporting Revenue Reconciling Item [Line Items]
Total revenue	1,807	2,957	4,823	6,048
Europe, Middle East and Africa
Segment Reporting Revenue Reconciling Item [Line Items]
Total revenue	6,896	6,780	13,979	14,262
Asia Pacific
Segment Reporting Revenue Reconciling Item [Line Items]
Total revenue	6,373	$ 3,911	11,038	$ 7,558
Other
Segment Reporting Revenue Reconciling Item [Line Items]
Long-lived assets	$ 974		$ 974		$ 268