Gigamon (GIMO) Inactive 10-Q10 May 172017 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Apr. 01, 2017	May 01, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 1, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	GIMO
Entity Registrant Name	GIGAMON INC.
Entity Central Index Key	1,484,504
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		36,740,466

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 159,676	$ 148,926
Short-term investments	105,504	109,238
Accounts receivable, net of allowance for doubtful accounts and sales returns of $882 and $979, as of April 1, 2017 and December 31, 2016, respectively	56,526	75,522
Inventories	11,908	11,347
Prepaid expenses and other current assets	12,137	9,909
Total current assets	345,751	354,942
Property and equipment, net	12,448	11,809
Deferred tax assets, net	44,458	33,094
Other assets, non-current	2,272	1,154
TOTAL ASSETS	404,929	400,999
CURRENT LIABILITIES:
Accounts payable	6,591	5,208
Accrued liabilities	20,490	34,649
Deferred revenue	67,484	68,997
Total current liabilities	94,565	108,854
Deferred revenue, non-current	28,351	28,785
Deferred and other tax liabilities, non-current	288	201
Other liabilities, non-current	312	499
TOTAL LIABILITIES	123,516	138,339
Commitments and Contingencies (Note 5)
STOCKHOLDERS’ EQUITY
Preferred stock—$0.0001 par value; 20,000 shares authorized, no shares issued or outstanding as of April 1, 2017 and December 31, 2016, respectively.	0	0
Common stock—$0.0001 par value; 1,000,000 shares authorized, 36,740 and 36,303 shares issued and outstanding as of April 1, 2017 and December 31, 2016, respectively.	4	4
Treasury stock— 8,110 shares outstanding as of October 1, 2016 and December 26, 2015	0	0
Additional paid-in capital	274,287	256,774
Accumulated other comprehensive loss	(49)	(17)
Retained earnings	7,171	5,899
TOTAL STOCKHOLDERS’ EQUITY	281,413	262,660
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 404,929	$ 400,999

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 882	$ 979
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	36,739,875	36,303,219
Common stock, shares outstanding	36,739,875	36,303,219
Treasury stock, shares authorized and outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Revenue:
Product	$ 44,010	$ 44,662
Service	25,557	22,549
Total revenue	69,567	67,211
Cost of revenue:
Product	10,604	10,707
Service	2,706	2,082
Total cost of revenue	13,310	12,789
Gross profit	56,257	54,422
Operating expenses:
Research and development	20,149	15,358
Sales and marketing	33,441	27,657
General and administrative	9,055	7,995
Total operating expenses	62,645	51,010
Income (loss) from operations	(6,388)	3,412
Interest income	356	207
Other expense, net	(117)	(69)
Income (loss) before income tax provision	(6,149)	3,550
Income tax benefit (provision)	3,912	(579)
Deferred Tax Assets, Net of Valuation Allowance	6,600
Net income (loss)	$ (2,237)	$ 2,971
Net income (loss) per share:
Basic (in dollars per share)	$ (0.06)	$ 0.09
Diluted (in dollars per share)	$ (0.06)	$ 0.08
Weighted average shares used in computing net income (loss) per share:
Basic (in shares)	36,563	34,633
Diluted (in shares)	36,563	36,546
Deferred Tax Assets, Valuation Allowance	$ 500

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (2,237)	$ 2,971
Other comprehensive income (loss):
Unrealized gain (loss) on available-for-sale investments, net	(32)	84
Comprehensive income (loss)	$ (2,269)	$ 3,055

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (2,237)	$ 2,971
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	2,021	1,271
Stock-based compensation expense	12,554	8,176
Deferred income taxes	(4,137)	(117)
Inventory write-down	206	175
Other	29	25
Changes in operating assets and liabilities:
Accounts receivable	18,996	2,263
Inventories	(770)	(2,073)
Prepaid expenses and other assets	(2,792)	654
Accounts payable	1,718	(254)
Accrued liabilities and other liabilities	(14,371)	(13,076)
Deferred revenue	(1,947)	(3,282)
Net cash provided by (used in) operating activities	9,270	(3,267)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments	(33,710)	(29,107)
Proceeds from maturities of short-term investments	37,500	26,786
Purchase of property and equipment	(2,695)	(2,107)
Net cash provided by (used in) investing activities	1,095	(4,428)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from employee stock purchase plan	4,956	3,368
Proceeds from exercise of stock options	581	1,377
Shares repurchased for tax withholdings on vesting of restricted stock units	(4,339)	(1,385)
Net cash provided by financing activities	1,198	3,360
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	11,563	(4,335)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period	148,926	120,212
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period	160,489	115,877
Current assets - Cash and cash equivalents	159,676	115,877
Other assets, non-current - restricted cash	813	0
Cash and cash equivalents	159,676	115,877
Income taxes paid during the period	750	283
Unpaid property and equipment purchases	$ 955	$ 314

Description of the Company

Description of the Company	3 Months Ended
Description of the Company	Apr. 01, 2017
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 visibility and control of network traffic. The Company serves global enterprises, governments 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	3 Months Ended
Summary of Significant Accounting Policies	Apr. 01, 2017
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 unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . 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 except for the adoption of the accounting standard update related to Improvements to Employee Share-Based Payment Accounting, which amends Compensation - Stock Compensation and the accounting standard update related to restricted cash, which affected the presentation in the condensed statements of cash flows. Certain prior periods’ amounts were reclassified to conform to the current year’s presentation. None of these reclassifications impacted the reported net income (loss) or earnings per share for any of the periods presented. The Company's fiscal year is 52 or 53 weeks and ends on the last Saturday in December. Fiscal 2016 was a 53-week fiscal year ending on December 31, 2016 ; the first quarter was a 14-week quarter ended on April 2, 2016 and each subsequent quarter was a 13-week quarter. Fiscal 2017 is 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 April 1, 2017 , its results of operations and comprehensive income (loss) for the three months ended April 1, 2017 and April 2, 2016 , respectively, and cash flows for the three months ended April 1, 2017 and April 2, 2016 , respectively. The financial data and the other financial information disclosed in the accompanying notes to the condensed consolidated financial statements related to these three 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 statement of income for the three months ended April 1, 2017 is 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 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. 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 two contract manufacturers to manufacture a substantial majority of its products. The inability of its single source suppliers and contract manufacturers 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 majority of the Company's cash, cash equivalents and short-term investments are held in, or managed by 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 following customers represented more than 10% or more of total revenue or accounts receivable: Three Months Ended April 1, 2017 April 2, 2016 Percent of Revenue: Customer A (distributor) 25 % 35 % Customer B (distributor) 18 % 24 % Customer C (end user) 18 % 14 % As of April 1, 2017 December 31, 2016 Percent of Accounts Receivable: Customer A (distributor) 17 % 32 % Customer B (distributor) 18 % 16 % Customer C (end user) 24 % 10 % Recent Accounting Pronouncements New Accounting Updates Recently Adopted The Company has adopted the accounting standard update related to Improvements to Employee Share-Based Payment Accounting, which amends Compensation – Stock Compensation during the first quarter of fiscal 2017. Specifically, the Company elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The net cumulative effect of the change was recognized as a $3.6 million reduction to retained earnings as of January 1, 2017. Stock-based excess tax benefits or shortfalls are now reflected in the results of operations as a component of the income tax benefit (provision), whereas they previously were recognized in equity. The cumulative impact of this change was recorded as a deferred tax asset of $7.6 million for the previously unrecognized excess tax benefits with an adjustment of $7.1 million and $0.5 million to retained earnings and a valuation allowance for a certain jurisdiction, respectively. Additionally, the Company's condensed consolidated statements of cash flows now includes excess tax benefits as an operating activity with the prior period adjusted accordingly. The Company has adopted the restricted cash guidance, which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods presented in the consolidated statements of cash flows in the first quarter of fiscal 2017 using a retrospective transition method for each period presented. Recent Accounting Updates Not Yet Effective 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 new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The Company did not elect to early adopt, and accordingly, it will adopt the new standard effective for its fiscal year 2018. The Company is evaluating the impact of the new standard on its accounting policies, processes, and system requirements and currently plans to adopt using the full retrospective approach. However, a final decision regarding the adoption method has not been finalized at this time. The Company's final determination will depend on a number of factors, such as the significance of the impact of the new standard on our financial results, system readiness, including that of software procured from third-party providers, and its ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. Revenue recognition for non-essential software is currently accounted for under the Software Revenue Recognition guidance, which entails allocating the arrangement consideration to deliverables that have established vendor specific objective evidence Value (“VSOE”) or fair value and the residual to other deliverables based on third party evidence or best estimates of selling prices. Revenue from each deliverable is then recognized when all requirements are met for that specific deliverable. The new standard does not retain the concept of VSOE, the Company preliminarily believes it will use the Standalone Selling Price to determine the appropriate amount to be allocated to each separate performance obligation using the Relative Selling Price approach. As part of the Company's preliminary evaluation, it has considered the impact of the guidance relating to Other Assets and Deferred Costs; Contracts with customers, and the interpretations of the FASB Transition Resource Group for Revenue Recognition ("TRG") from their November 7, 2016 meeting with respect to capitalization and amortization of incremental costs of obtaining a contract. As a result of this new guidance, the Company preliminarily believes that it will capitalize certain costs of obtaining the contract, including additional sales commissions, as the new cost guidance, as interpreted by the TRG, requires the capitalization of all incremental costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained, provided it expects to recover the costs. Under the Company's current accounting policy, it expenses the commission costs immediately as incurred. While the Company continues to assess the potential impacts of the new standard, it anticipates this standard could have a material impact on its consolidated financial statements. However, the Company cannot reasonably estimate quantitative information related to the impact of the new standard on its consolidated financial statements at this time. 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 expects the standard to have a material impact on its assets and liabilities for the addition of right-of-use assets and lease liabilities, but the Company does not expect it to have a material impact on its results of operations or liquidity. 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 consolidated financial statements. In October 2016, the FASB issued new guidance that requires a reporting entity to recognize the tax expense from intra-entity asset transfers of assets other than inventory in the selling entity’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buying entity’s jurisdiction would also be recognized at the time of the transfer. The new guidance will likely impact reporting entities’ effective tax rates. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. The amendment should be adopted using the modified retrospective approach with a cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. The Company is evaluating the impact of this guidance on its consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Apr. 01, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements 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 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 Equivalents and Short-Term Investments The components of the Company’s cash equivalents and short-term investments are as follows (in thousands): Fair Value Measured Using April 1, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents: Money market funds $ 95,496 $ 95,496 $ — Commercial papers 10,492 — 10,492 Total cash equivalents $ 105,988 $ 95,496 $ 10,492 Short-term investments: Corporate debt securities $ 15,661 $ — $ 15,661 Commercial papers 14,742 — 14,742 U.S. agency debt securities 18,618 — 18,618 U.S. government securities 56,483 — 56,483 Total short-term investments $ 105,504 $ — $ 105,504 Fair Value Measured Using December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents: Money market funds $ 99,992 $ 99,992 $ — Commercial papers 1,999 — 1,999 Total cash equivalents $ 101,991 $ 99,992 $ 1,999 Short-term investments: Corporate debt securities $ 10,110 $ — $ 10,110 Commercial papers 12,956 — 12,956 U.S. agency debt securities 21,697 — 21,697 U.S. government securities 64,475 — 64,475 Total short-term investments $ 109,238 $ — $ 109,238 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. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency which are obtained from quoted market prices, independent pricing vendors or other sources, to determine the ultimate fair value of these assets. The Company has no assets classified as Level 3. The Company’s policy is to recognize 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 Company did not have any transfers between Level 1 and Level 2 in the three months ended April 1, 2017 . As of April 1, 2017 and December 31, 2016 , 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 April 1, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds $ 95,496 $ — $ — $ 95,496 Commercial papers 10,492 — — 10,492 Total cash equivalents $ 105,988 $ — $ — $ 105,988 Short-term investments: Corporate debt securities $ +15,672 $ 2 $ (13 ) $ 15,661 Commercial papers 14,742 — — 14,742 U.S. agency debt securities 18,623 1 (6 ) 18,618 U.S. government securities 56,516 1 (34 ) 56,483 Total short-term investments $ 105,553 $ 4 $ (53 ) $ 105,504 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds $ 99,992 $ — $ — $ 99,992 Commercial papers 1,999 — — 1,999 Total cash equivalents $ 101,991 $ — $ — $ 101,991 Short-term investments: Corporate debt securities $ 10,119 $ — $ (9 ) $ 10,110 Commercial papers 12,956 — — 12,956 U.S. agency debt securities 21,698 1 (2 ) 21,697 U.S. government securities 64,482 8 (15 ) 64,475 Total short-term investments $ 109,255 $ 9 $ (26 ) $ 109,238 The Company’s realized gain was immaterial in the three months ended April 1, 2017 . There were no securities in a material continuous loss position for 12 months or longer as of April 1, 2017 and December 31, 2016 . The contractual maturity date of the cash equivalents and short-term investments at estimated fair value was as follows (in thousands): As of April 1, 2017 December 31, 2016 Due within one year $ 195,003 $ 205,250 Due between one and five years 16,489 5,979 Total $ 211,492 $ 211,229

Balance Sheet Components

Balance Sheet Components	3 Months Ended
Balance Sheet Components	Apr. 01, 2017
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 April 1, 2017 December 31, 2016 Raw materials $ 21 $ 50 Finished goods 11,887 11,297 Total inventories $ 11,908 $ 11,347 Inventory is valued at the lower of cost computed on a first-in, first-out basis, or market value. Property and equipment, net Property and equipment, net, are comprised of the following (in thousands): As of April 1, 2017 December 31, 2016 Equipment and machinery $ 22,177 $ 20,611 Furniture and fixtures 645 654 Leasehold improvements 3,895 3,367 Software 2,580 2,519 Total property and equipment 29,297 27,151 Less accumulated depreciation and amortization (16,849 ) (15,342 ) Total property and equipment, net $ 12,448 $ 11,809 Depreciation and amortization expense was $1.6 million and $5.3 million for three months ended April 1, 2017 and fiscal 2016 , respectively. Accrued Liabilities Accrued liabilities are comprised of the following (in thousands): As of April 1, 2017 December 31, 2016 Accrued employee related costs $ 9,791 $ 25,468 Accrued inventory and other purchases 2,668 1,778 Accrued taxes payable 2,886 1,977 Accrued professional services 798 667 Other accruals 4,347 4,759 Total accrued liabilities $ 20,490 $ 34,649 Accrued Warranty Warranty activity and accrued warranty is comprised of the following (in thousands): Three Months Ended April 1, 2017 December 31, 2016 Accrued warranty balance at beginning of period $ 960 $ 807 Accrual for warranty during the period 339 1,560 Actual costs incurred (370 ) (1,407 ) Accrued warranty balance at end of period $ 929 $ 960 As of Accrued warranty reported as: April 1, 2017 December 31, 2016 Accrued liabilities, current $ 637 $ 653 Other liabilities, non-current 292 307 Total accrued warranty $ 929 $ 960 Deferred Revenue Deferred revenue is comprised of the following (in thousands): As of April 1, 2017 December 31, 2016 Deferred service revenue $ 95,691 $ 97,646 Deferred product revenue 144 136 Total deferred revenue $ 95,835 $ 97,782 Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of unrealized gains and losses from available-for-sale securities. The following summarizes the activity within accumulated other comprehensive loss (in thousands): Accumulated Other Comprehensive Loss Balance as of December 31, 2016 $ (17 ) Available-for-sale securities: Unrealized loss (32 ) Total other comprehensive loss (32 ) Balance as of April 1, 2017 $ (49 ) 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 into the condensed consolidated statements of income in the three months ended April 1, 2017 and April 2, 2016 .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Apr. 01, 2017
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 dates through fiscal 2025. The Company has also entered into lease agreements for additional office space in India and Sweden. 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 $0.9 million for the three months ended April 1, 2017 and April 2, 2016 , respectively. No material change in the future minimum lease payments under non-cancelable operating leases has occurred in the three-month period end April 1, 2017 as reported in the Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Purchase Commitments The Company has agreements with contract manufacturers for the manufacture 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 also purchases raw materials directly from suppliers to be used by the contract manufacturer in the production of the Company’s products. The Company may be obligated to purchase component inventory that is non-cancelable. As of April 1, 2017 and December 31, 2016 , the Company’s non-cancelable purchase commitments for such component inventory were $19.4 million and $15.7 million , respectively. Legal Proceedings On January 27, 2017, a purported shareholder class action was filed in the United States District Court for the Northern District of California against the Company and three of its current and former officers. The plaintiff alleges that the Company made false and misleading statements about the Company’s business, operations, and prospects, including statements about the Company’s guidance, for the fourth quarter of 2016. The complaint seeks unspecified monetary damages, attorneys' fees and costs and other relief. The Company believes this lawsuit is without merit and intends to defend against it vigorously. The matter is still in the very early stages and the Company will defend against the allegations accordingly. Due to the current early stage of the proceedings, the Company cannot reasonably estimate the loss or the range of possible losses, if any. 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 condensed 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	3 Months Ended
Preferred Stock and Stockholders' Equity	Apr. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Preferred Stock and Stockholders' Equity	Stockholders’ Equity 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 Option Plan were added to the 2013 Equity Plan’s authorized pool in June 2013. The Company is authorized to issue up to a maximum of 2,929,481 shares of common stock for future issuance, plus up to an additional 4,967,172 shares upon termination of awards under the Option Plan. In addition, the 2013 Equity Plan is subject to increase annually on the first day of each of the Company’s fiscal years beginning with fiscal 2014, 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. Vested but unexercised options, under the 2013 Equity Plan, expire three months after termination of service with the Company. An additional 1,464,740 shares were authorized during the three months ended April 1, 2017 . Vested but unexercised options, under the 2013 Equity Plan, expire three months after termination of service with the Company. As of April 1, 2017 , outstanding awards under the 2013 Equity Plan and the 2012 Plan covered 4,044,639 shares and 357,966 shares of the Company's common stock, respectively. The 2013 Equity Plan permits the granting of stock options, stock appreciation rights, restricted stock, 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 in June 2013 (the "IPO"), the Company adopted the 2013 Employee Stock Purchase Plan (the “ESPP”). A maximum of 439,422 shares were initially authorized for future issuance and the number of authorized shares under the ESPP is subject to increase on an annual basis. In the twelve months ended December 26, 2015 and December 27, 2014, the Board authorized an additional 439,422 shares of common stock for future issuance under the ESPP. 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 three months ended April 1, 2017 . The Company recorded stock-based compensation expense for its ESPP of $2.2 million and $0.8 million for the three months ended April 1, 2017 and April 2, 2016 , respectively. For the three months ended April 1, 2017 there was one purchase period that resulted in the issuance of 0.2 million shares of common stock at a weighted average purchase price of $25.96 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. 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 Equity Incentive Plans: Number of Weighted- Weighted- Aggregate Balance — December 31, 2016 1,391,171 $ 21.19 6.39 $ 35,076 Options granted — $ — Options exercised (55,225 ) $ 10.52 Options forfeited/canceled (110,754 ) $ 25.44 Balance — April 1, 2017 1,225,192 $ 21.29 6.14 $ 19,663 Exercisable — April 1, 2017 854,100 $ 17.29 6.19 $ 15,592 Aggregate intrinsic value represents the difference between the exercise price of the awards and the Company’s fair value per share of $35.55 and $45.55 as of April 1, 2017 and December 31, 2016 , respectively, for the total number of underlying options. 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 Equity Incentive Plans: Number of Weighted- Weighted- Aggregate Balance — December 31, 2016 2,466,049 $ 26.66 1.39 $ 112,329 RSUs awarded 1,141,725 $ 34.78 RSUs released (313,697 ) $ 23.13 RSUs forfeited (120,108 ) $ 25.21 Balance — April 1, 2017 3,173,969 $ 29.98 1.50 $ 112,835 Aggregate intrinsic value for RSUs represents the Company’s fair market value per share of $35.55 and $45.55 , as of April 1, 2017 and December 31, 2016 , respectively, for the total number of underlying RSUs. The Company withheld shares totaling $4.3 million in value as a result of employee withholding taxes based on the value of the RSUs on their vesting date for three months ended April 1, 2017 . The total payments for the employees’ tax obligations to the taxing authorities are reflected as financing activities within the Condensed Consolidated Statements of Cash Flows. Performance-Based Awards During the fiscal year ended December 31, 2016 , the Company awarded 193,000 shares of performance-based RSUs. The vesting conditions of these awards were tied to the Company's fiscal 2016 revenue and operating income performance. These performance-based RSUs could have vested from 0% to 200% of the target grant, based on attainment of the performance goals. The target achievement percentage became known as of December 31, 2016 . On December 31, 2016 , the Company concluded that 149% of the target grants were likely to vest. If the achievement of such performance goals is not probable, no compensation expense would be recognized. For the three months ended April 1, 2017 , the Company recorded $0.7 million on a graded-vesting basis in stock-based compensation expense related to these performance-based RSU awards. As of April 1, 2017 , there were 129,750 units subject to performance-based vesting criteria. Stock-Based Compensation Expense No stock options were granted in the three months ended April 1, 2017 and April 2, 2016 , respectively. The fair value of ESPP purchase rights is estimated on the date of grant using the Black-Scholes option-pricing model. The fair values of the ESPP purchase rights granted and the assumptions used in the Black-Scholes option pricing model are summarized as follows: Three Months Ended April 1, April 2, ESPP purchase right: Expected term (in years) 0.50 - 2.0 0.50 - 2.0 Risk-free interest rate 0.67% - 1.26% 0.42% - 0.74% Expected volatility 58.3% - 68.6% 55.8% - 67.2% Expected dividend rate —% —% Grant date fair value per share $11.94 - $16.42 $7.75 - $12.26 As of April 1, 2017 and December 31, 2016 , there was $ 0.3 million and $0.1 million of capitalized stock-based compensation costs, respectively, within the Company's inventory balance. The following table summarizes the stock-based compensation expense recorded in the Company’s condensed consolidated statements of income (in thousands): Three Months Ended April 1, April 2, Cost of revenue $ 677 $ 470 Research and development 4,708 2,946 Sales and marketing 3,857 2,293 General and administrative 3,312 2,467 Total stock-based compensation expense $ 12,554 $ 8,176 As of April 1, 2017 , unrecognized compensation expense related to stock options, RSUs, PSUs, and ESPP purchase rights was $2.9 million , $60.4 million , $2.4 million and $6.6 million , respectively.

Defined Contribution Plans

Defined Contribution Plans	3 Months Ended
Defined Contribution Plans	Apr. 01, 2017
Postemployment Benefits [Abstract]
Defined Contribution Plans	Defined Contribution Plans The Company’s contributions to its 401(k) defined contribution plan, which are expensed immediately as compensation costs, were $1.1 million and $0.8 million for the three months ended April 1, 2017 and April 2, 2016 , respectively.

Income Tax

Income Tax	3 Months Ended
Income Tax	Apr. 01, 2017
Income Tax Disclosure [Abstract]
Income Tax	Income Tax The Company recorded an income tax benefit of $3.9 million for the three months ended April 1, 2017 , and an income tax provision of $0.6 million for the three months ended April 2, 2016 , respectively. The income tax benefit for the three months ended April 1, 2017 was primarily related to the Company's year-to-date pre-tax loss and a tax benefit related to stock-based compensation. As of the three months ended April 1, 2017 , the Company considered all positive and negative evidence in making a determination that the Company will more likely than not be able to utilize its U.S. deferred tax assets. 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 April 1, 2017 . 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 $6.6 million valuation allowance that relates to research and development credits in a jurisdiction with a history of credits in excess of taxable profits. The Company adopted the accounting standard update related to Improvements to Employee Share-Based Payment Accounting, which amends Compensation – Stock Compensation in the first quarter of fiscal 2017 . As a result, the Company recorded a deferred tax asset of $7.6 million for the previously unrecognized excess tax benefits with an adjustment of $7.1 million and $0.5 million to retained earnings and a valuation allowance for a certain jurisdiction, respectively, on the accompanying condensed consolidated balance sheet. Additionally, the adoption resulted in net excess tax benefits in our provision for income taxes of $1.7 million on its condensed consolidated statement of income for the three months ended April 1, 2017 . The Company files annual income tax returns in multiple tax jurisdictions worldwide. A number of years may lapse before an uncertain tax position is audited and finally resolved. While it is typically difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes 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 would likely require the use of cash. As of April 1, 2017 , 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 per Share

Net Income per Share	3 Months Ended
Net Income per Share	Apr. 01, 2017
Earnings Per Share [Abstract]
Net Income per Share	Net Income (Loss) per Share Basic net income (loss) per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested restricted stock. Diluted net income (loss) per share is computed based upon the weighted average common shares outstanding for the period plus dilutive potential common shares, including unvested restricted stock and stock options using the treasury stock method. 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 April 1, 2017 April 2, 2016 Numerator: Net income (loss) $ (2,237 ) $ 2,971 Denominator: Weighted average shares used for basic net income (loss) per share computation 36,563 34,633 Weighted average effect of dilutive securities: Stock options — 689 RSUs — 984 Performance-based units — 14 ESPP purchase rights — 226 Weighted average shares used for diluted net income (loss) per share computation 36,563 36,546 Net income (loss) per share attributable to common stockholders: Basic $ (0.06 ) $ 0.09 Diluted $ (0.06 ) $ 0.08 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 April 1, 2017 April 2, 2016 Equity awards to purchase common stock 148 274

Segment Information

Segment Information	3 Months Ended
Segment Information	Apr. 01, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information The Company currently has one operating segment, the Company considers operating segments to be components of the Company’s business for which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company was assessed and determined to be the chief executive officer. The chief executive officer reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating and reportable segment. The following table summarizes the Company’s revenue by geographic region, based shipment location (in thousands): Three Months Ended April 1, 2017 April 2, 2016 United States $ 54,431 $ 52,447 Rest of Americas 2,725 3,016 Europe, Middle East and Africa 8,628 7,083 Asia Pacific 3,783 4,665 Total $ 69,567 $ 67,211 The Company’s long-lived assets by geographic region are summarized as follows (in thousands): As of April 1, 2017 December 31, 2016 United States $ 10,457 $ 9,907 Other 1,991 1,902 Total $ 12,448 $ 11,809

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Apr. 01, 2017
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 unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . 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 except for the adoption of the accounting standard update related to Improvements to Employee Share-Based Payment Accounting, which amends Compensation - Stock Compensation and the accounting standard update related to restricted cash, which affected the presentation in the condensed statements of cash flows. Certain prior periods’ amounts were reclassified to conform to the current year’s presentation. None of these reclassifications impacted the reported net income (loss) or earnings per share for any of the periods presented.
Fiscal Period Policy	The Company's fiscal year is 52 or 53 weeks and ends on the last Saturday in December. Fiscal 2016 was a 53-week fiscal year ending on December 31, 2016 ; the first quarter was a 14-week quarter ended on April 2, 2016 and each subsequent quarter was a 13-week quarter. Fiscal 2017 is 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 April 1, 2017 , its results of operations and comprehensive income (loss) for the three months ended April 1, 2017 and April 2, 2016 , respectively, and cash flows for the three months ended April 1, 2017 and April 2, 2016 , respectively. The financial data and the other financial information disclosed in the accompanying notes to the condensed consolidated financial statements related to these three 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 statement of income for the three months ended April 1, 2017 is 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 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.
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 two contract manufacturers to manufacture a substantial majority of its products. The inability of its single source suppliers and contract manufacturers 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 majority of the Company's cash, cash equivalents and short-term investments are held in, or managed by 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements New Accounting Updates Recently Adopted The Company has adopted the accounting standard update related to Improvements to Employee Share-Based Payment Accounting, which amends Compensation – Stock Compensation during the first quarter of fiscal 2017. Specifically, the Company elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The net cumulative effect of the change was recognized as a $3.6 million reduction to retained earnings as of January 1, 2017. Stock-based excess tax benefits or shortfalls are now reflected in the results of operations as a component of the income tax benefit (provision), whereas they previously were recognized in equity. The cumulative impact of this change was recorded as a deferred tax asset of $7.6 million for the previously unrecognized excess tax benefits with an adjustment of $7.1 million and $0.5 million to retained earnings and a valuation allowance for a certain jurisdiction, respectively. Additionally, the Company's condensed consolidated statements of cash flows now includes excess tax benefits as an operating activity with the prior period adjusted accordingly. The Company has adopted the restricted cash guidance, which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods presented in the consolidated statements of cash flows in the first quarter of fiscal 2017 using a retrospective transition method for each period presented. Recent Accounting Updates Not Yet Effective 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 new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The Company did not elect to early adopt, and accordingly, it will adopt the new standard effective for its fiscal year 2018. The Company is evaluating the impact of the new standard on its accounting policies, processes, and system requirements and currently plans to adopt using the full retrospective approach. However, a final decision regarding the adoption method has not been finalized at this time. The Company's final determination will depend on a number of factors, such as the significance of the impact of the new standard on our financial results, system readiness, including that of software procured from third-party providers, and its ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. Revenue recognition for non-essential software is currently accounted for under the Software Revenue Recognition guidance, which entails allocating the arrangement consideration to deliverables that have established vendor specific objective evidence Value (“VSOE”) or fair value and the residual to other deliverables based on third party evidence or best estimates of selling prices. Revenue from each deliverable is then recognized when all requirements are met for that specific deliverable. The new standard does not retain the concept of VSOE, the Company preliminarily believes it will use the Standalone Selling Price to determine the appropriate amount to be allocated to each separate performance obligation using the Relative Selling Price approach. As part of the Company's preliminary evaluation, it has considered the impact of the guidance relating to Other Assets and Deferred Costs; Contracts with customers, and the interpretations of the FASB Transition Resource Group for Revenue Recognition ("TRG") from their November 7, 2016 meeting with respect to capitalization and amortization of incremental costs of obtaining a contract. As a result of this new guidance, the Company preliminarily believes that it will capitalize certain costs of obtaining the contract, including additional sales commissions, as the new cost guidance, as interpreted by the TRG, requires the capitalization of all incremental costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained, provided it expects to recover the costs. Under the Company's current accounting policy, it expenses the commission costs immediately as incurred. While the Company continues to assess the potential impacts of the new standard, it anticipates this standard could have a material impact on its consolidated financial statements. However, the Company cannot reasonably estimate quantitative information related to the impact of the new standard on its consolidated financial statements at this time. 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 expects the standard to have a material impact on its assets and liabilities for the addition of right-of-use assets and lease liabilities, but the Company does not expect it to have a material impact on its results of operations or liquidity. 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 consolidated financial statements. In October 2016, the FASB issued new guidance that requires a reporting entity to recognize the tax expense from intra-entity asset transfers of assets other than inventory in the selling entity’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buying entity’s jurisdiction would also be recognized at the time of the transfer. The new guidance will likely impact reporting entities’ effective tax rates. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. The amendment should be adopted using the modified retrospective approach with a cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. The Company is evaluating the impact of this guidance on its consolidated financial statements.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Tables)	3 Months Ended
Summary of Significant Accounting Policies (Tables)	Apr. 01, 2017
Accounting Policies [Abstract]
Customers Representing Major Revenue and Accounts Receivable	The following customers represented more than 10% or more of total revenue or accounts receivable: Three Months Ended April 1, 2017 April 2, 2016 Percent of Revenue: Customer A (distributor) 25 % 35 % Customer B (distributor) 18 % 24 % Customer C (end user) 18 % 14 % As of April 1, 2017 December 31, 2016 Percent of Accounts Receivable: Customer A (distributor) 17 % 32 % Customer B (distributor) 18 % 16 % Customer C (end user) 24 % 10 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Apr. 01, 2017
Fair Value Disclosures [Abstract]
Components of Cash and Cash Equivalents	Fair Value Measured Using April 1, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents: Money market funds $ 95,496 $ 95,496 $ — Commercial papers 10,492 — 10,492 Total cash equivalents $ 105,988 $ 95,496 $ 10,492 Short-term investments: Corporate debt securities $ 15,661 $ — $ 15,661 Commercial papers 14,742 — 14,742 U.S. agency debt securities 18,618 — 18,618 U.S. government securities 56,483 — 56,483 Total short-term investments $ 105,504 $ — $ 105,504 Fair Value Measured Using December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents: Money market funds $ 99,992 $ 99,992 $ — Commercial papers 1,999 — 1,999 Total cash equivalents $ 101,991 $ 99,992 $ 1,999 Short-term investments: Corporate debt securities $ 10,110 $ — $ 10,110 Commercial papers 12,956 — 12,956 U.S. agency debt securities 21,697 — 21,697 U.S. government securities 64,475 — 64,475 Total short-term investments $ 109,238 $ — $ 109,238
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 April 1, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds $ 95,496 $ — $ — $ 95,496 Commercial papers 10,492 — — 10,492 Total cash equivalents $ 105,988 $ — $ — $ 105,988 Short-term investments: Corporate debt securities $ +15,672 $ 2 $ (13 ) $ 15,661 Commercial papers 14,742 — — 14,742 U.S. agency debt securities 18,623 1 (6 ) 18,618 U.S. government securities 56,516 1 (34 ) 56,483 Total short-term investments $ 105,553 $ 4 $ (53 ) $ 105,504 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds $ 99,992 $ — $ — $ 99,992 Commercial papers 1,999 — — 1,999 Total cash equivalents $ 101,991 $ — $ — $ 101,991 Short-term investments: Corporate debt securities $ 10,119 $ — $ (9 ) $ 10,110 Commercial papers 12,956 — — 12,956 U.S. agency debt securities 21,698 1 (2 ) 21,697 U.S. government securities 64,482 8 (15 ) 64,475 Total short-term investments $ 109,255 $ 9 $ (26 ) $ 109,238
Schedule of Contractual Maturity Date of Marketable Securities	As of April 1, 2017 December 31, 2016 Due within one year $ 195,003 $ 205,250 Due between one and five years 16,489 5,979 Total $ 211,492 $ 211,229

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
Balance Sheet Components (Tables)	Apr. 01, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventories	Inventories are comprised of the following (in thousands): As of April 1, 2017 December 31, 2016 Raw materials $ 21 $ 50 Finished goods 11,887 11,297 Total inventories $ 11,908 $ 11,347
Accrued Liabilities	Accrued liabilities are comprised of the following (in thousands): As of April 1, 2017 December 31, 2016 Accrued employee related costs $ 9,791 $ 25,468 Accrued inventory and other purchases 2,668 1,778 Accrued taxes payable 2,886 1,977 Accrued professional services 798 667 Other accruals 4,347 4,759 Total accrued liabilities $ 20,490 $ 34,649
Accrued Warranty Liability	Warranty activity and accrued warranty is comprised of the following (in thousands): Three Months Ended April 1, 2017 December 31, 2016 Accrued warranty balance at beginning of period $ 960 $ 807 Accrual for warranty during the period 339 1,560 Actual costs incurred (370 ) (1,407 ) Accrued warranty balance at end of period $ 929 $ 960 As of Accrued warranty reported as: April 1, 2017 December 31, 2016 Accrued liabilities, current $ 637 $ 653 Other liabilities, non-current 292 307 Total accrued warranty $ 929 $ 960
Deferred Revenue	Deferred revenue is comprised of the following (in thousands): As of April 1, 2017 December 31, 2016 Deferred service revenue $ 95,691 $ 97,646 Deferred product revenue 144 136 Total deferred revenue $ 95,835 $ 97,782
Accumulated Other Comprehensive Income	The following summarizes the activity within accumulated other comprehensive loss (in thousands): Accumulated Other Comprehensive Loss Balance as of December 31, 2016 $ (17 ) Available-for-sale securities: Unrealized loss (32 ) Total other comprehensive loss (32 ) Balance as of April 1, 2017 $ (49 )
Property and equipment	Property and equipment, net Property and equipment, net, are comprised of the following (in thousands): As of April 1, 2017 December 31, 2016 Equipment and machinery $ 22,177 $ 20,611 Furniture and fixtures 645 654 Leasehold improvements 3,895 3,367 Software 2,580 2,519 Total property and equipment 29,297 27,151 Less accumulated depreciation and amortization (16,849 ) (15,342 ) Total property and equipment, net $ 12,448 $ 11,809 Depreciation and amortization expense was $1.6 million and $5.3 million for three months ended April 1, 2017 and fiscal 2016 , respectively.

Preferred Stock and Stockhold21

Preferred Stock and Stockholders' Equity (Tables)	3 Months Ended
Preferred Stock and Stockholders' Equity (Tables)	Apr. 01, 2017
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 Equity Incentive Plans: Number of Weighted- Weighted- Aggregate Balance — December 31, 2016 1,391,171 $ 21.19 6.39 $ 35,076 Options granted — $ — Options exercised (55,225 ) $ 10.52 Options forfeited/canceled (110,754 ) $ 25.44 Balance — April 1, 2017 1,225,192 $ 21.29 6.14 $ 19,663 Exercisable — April 1, 2017 854,100 $ 17.29 6.19 $ 15,592
Schedule of RSU Activity	The following table summarizes the RSU activity under the Company’s Equity Incentive Plans: Number of Weighted- Weighted- Aggregate Balance — December 31, 2016 2,466,049 $ 26.66 1.39 $ 112,329 RSUs awarded 1,141,725 $ 34.78 RSUs released (313,697 ) $ 23.13 RSUs forfeited (120,108 ) $ 25.21 Balance — April 1, 2017 3,173,969 $ 29.98 1.50 $ 112,835
Schedule of Fair Values of the Options Awards and ESPP Purchase Rights Granted	The fair values of the ESPP purchase rights granted and the assumptions used in the Black-Scholes option pricing model are summarized as follows: Three Months Ended April 1, April 2, ESPP purchase right: Expected term (in years) 0.50 - 2.0 0.50 - 2.0 Risk-free interest rate 0.67% - 1.26% 0.42% - 0.74% Expected volatility 58.3% - 68.6% 55.8% - 67.2% Expected dividend rate —% —% Grant date fair value per share $11.94 - $16.42 $7.75 - $12.26
Summary of Stock-based Compensation Expense	The following table summarizes the stock-based compensation expense recorded in the Company’s condensed consolidated statements of income (in thousands): Three Months Ended April 1, April 2, Cost of revenue $ 677 $ 470 Research and development 4,708 2,946 Sales and marketing 3,857 2,293 General and administrative 3,312 2,467 Total stock-based compensation expense $ 12,554 $ 8,176

Net Income per Share (Tables)

Net Income per Share (Tables)	3 Months Ended
Net Income per Share (Tables)	Apr. 01, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	he 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 April 1, 2017 April 2, 2016 Numerator: Net income (loss) $ (2,237 ) $ 2,971 Denominator: Weighted average shares used for basic net income (loss) per share computation 36,563 34,633 Weighted average effect of dilutive securities: Stock options — 689 RSUs — 984 Performance-based units — 14 ESPP purchase rights — 226 Weighted average shares used for diluted net income (loss) per share computation 36,563 36,546 Net income (loss) per share attributable to common stockholders: Basic $ (0.06 ) $ 0.09 Diluted $ (0.06 ) $ 0.08
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 April 1, 2017 April 2, 2016 Equity awards to purchase common stock 148 274

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
Segment Information (Tables)	Apr. 01, 2017
Segment Reporting [Abstract]
Revenue and Long-Lived Assets by Geographic Region	The following table summarizes the Company’s revenue by geographic region, based shipment location (in thousands): Three Months Ended April 1, 2017 April 2, 2016 United States $ 54,431 $ 52,447 Rest of Americas 2,725 3,016 Europe, Middle East and Africa 8,628 7,083 Asia Pacific 3,783 4,665 Total $ 69,567 $ 67,211 The Company’s long-lived assets by geographic region are summarized as follows (in thousands): As of April 1, 2017 December 31, 2016 United States $ 10,457 $ 9,907 Other 1,991 1,902 Total $ 12,448 $ 11,809

Summary of Significant Accoun24

Summary of Significant Accounting Policies - Customers Representing Major Revenue and Accounts Receivable (Detail)	3 Months Ended		12 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Total Revenue \| Customer A (distributor)
Concentration Risk [Line Items]
Concentration risk	25.00%	35.00%
Total Revenue \| Customer B (distributor)
Concentration Risk [Line Items]
Concentration risk	18.00%	24.00%
Total Revenue \| Customer C (end user)
Concentration Risk [Line Items]
Concentration risk	18.00%	14.00%
Accounts Receivable \| Customer A (distributor)
Concentration Risk [Line Items]
Concentration risk	17.00%		32.00%
Accounts Receivable \| Customer B (distributor)
Concentration Risk [Line Items]
Concentration risk	18.00%		16.00%
Accounts Receivable \| Customer C (end user)
Concentration Risk [Line Items]
Concentration risk	24.00%		10.00%

Summary of Significant Accoun25

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Schedule Of Significant Accounting Policies [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 3,600
Inventory write-down	206	$ 175
Deferred Tax Liabilities, Other	7,600
Deferred Tax Assets, Net	7,100
Deferred Tax Assets, Valuation Allowance	$ 500

Fair Value Measurements - Compo

Fair Value Measurements - Components of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Short-term investments:
Short-term investments	$ 105,504	$ 109,238
Money market funds
Cash and cash equivalents:
Cash and cash equivalents	95,496	99,992
Corporate debt securities
Short-term investments:
Short-term investments	15,661	10,110
Commercial papers
Cash and cash equivalents:
Cash and cash equivalents	10,492	1,999
Short-term investments:
Short-term investments	14,742	12,956
Cash Equivalents
Cash and cash equivalents:
Cash and cash equivalents	105,988	101,991
U.S. agency debt securities
Short-term investments:
Short-term investments	18,618	21,697
U.S. government securities
Short-term investments:
Short-term investments	56,483	64,475
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Money market funds
Cash and cash equivalents:
Cash and cash equivalents	95,496	99,992
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	95,496	99,992
Significant Other Observable Inputs (Level 2)
Short-term investments:
Short-term investments	105,504	109,238
Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Short-term investments:
Short-term investments	15,661	10,110
Significant Other Observable Inputs (Level 2) \| Commercial papers
Cash and cash equivalents:
Cash and cash equivalents	10,492	1,999
Money Market Funds, at Carrying Value	0	0
Short-term investments:
Short-term investments	14,742	12,956
Significant Other Observable Inputs (Level 2) \| Cash Equivalents
Cash and cash equivalents:
Cash and cash equivalents	10,492	1,999
Significant Other Observable Inputs (Level 2) \| U.S. agency debt securities
Short-term investments:
Short-term investments	18,618	21,697
Significant Other Observable Inputs (Level 2) \| U.S. government securities
Short-term investments:
Short-term investments	$ 56,483	$ 64,475

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	Apr. 01, 2017	Dec. 31, 2016
Cash and Cash Equivalents
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	$ 105,988	$ 101,991
Fair Value	105,988	101,991
Cash and Cash Equivalents \| Money market funds
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	95,496	99,992
Fair Value	95,496	99,992
Cash and Cash Equivalents \| Commercial papers
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	10,492	1,999
Fair Value	10,492	1,999
Short-term Investments
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	105,553	109,255
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0
Cash and Cash Equivalents, at Carrying Value	0
Gross Unrealized Gains	4	9
Gross Unrealized Losses	(53)	(26)
Fair Value	105,504	109,238
Short-term Investments \| Money market funds
Cash And Cash Equivalents And Short Term Investments [Line Items]
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0
Short-term Investments \| Corporate debt securities
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	15,672	10,119
Gross Unrealized Gains	2	0
Gross Unrealized Losses	(13)	(9)
Fair Value	15,661	10,110
Short-term Investments \| Commercial papers
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	14,742	12,956
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	14,742	12,956
Short-term Investments \| U.S. agency debt securities
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	18,623	21,698
Gross Unrealized Gains	1	1
Gross Unrealized Losses	(6)	(2)
Fair Value	18,618	21,697
Short-term Investments \| U.S. government securities
Cash And Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost Basis	56,516	64,482
Gross Unrealized Gains	1	8
Gross Unrealized Losses	(34)	(15)
Fair Value	$ 56,483	$ 64,475

Fair Value Measurements - Contr

Fair Value Measurements - Contractual Maturity Date of Short-Term Investments (Detail) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Contractual Maturity Date of Short-Term Investments [Abstract]
Due within one year	$ 195,003	$ 205,250
Due between one and five years	16,489	5,979
Total	$ 211,492	$ 211,229

Balance Sheet Components - Inve

Balance Sheet Components - Inventories (Detail) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 21	$ 50
Finished goods	11,887	11,297
Total inventories	$ 11,908	$ 11,347

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued employee related costs	$ 9,791	$ 25,468
Accrued inventory and other purchases	2,668	1,778
Accrued taxes payable	2,886	1,977
Accrued professional services	798	667
Other accruals	4,347	4,759
Total accrued liabilities	$ 20,490	$ 34,649

Balance Sheet Components - Ac31

Balance Sheet Components - Accrued Warranty (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 960	$ 807
Accrual for warranty during the period	339	1,560
Actual costs incurred	(370)	(1,407)
Ending balance	929	960
Product Warranty Accrual, Balance Sheet Classification [Abstract]
Accrued liabilities, current	637	653
Other liabilities, non-current	292	307
Total accrued warranty	$ 929	$ 960

Balance Sheet Components - Accu

Balance Sheet Components - Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Apr. 01, 2017	Oct. 01, 2016
Net Unrealized Loss
Beginning balance	$ 17,000
Ending balance	(49,000)
Income Tax Provision
Tax impact on unrealized gains or losses	0	$ 0
Reclassifications out of accumulated other comprehensive income	0	$ 0
Accumulated Net Unrealized Investment Gain (Loss)
Net Unrealized Loss
Available-for-sale Securities, Gross Unrealized Loss	(32,000)
Other comprehensive income (loss), before tax	$ (32,000)

Balance Sheet Components -Defer

Balance Sheet Components -Deferred Revenues (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Deferred Revenue Arrangement [Line Items]
Deferred Revenue	$ 95,835	$ 97,782
Sales Revenue, Services, Net [Member]
Deferred Revenue Arrangement [Line Items]
Deferred Revenue	95,691	97,646
Product [Member]
Deferred Revenue Arrangement [Line Items]
Deferred Revenue	$ 144	$ 136

Balance Sheet Components Proper

Balance Sheet Components Property and equipment (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Depreciation, Depletion and Amortization	$ 1,600	$ 5,300
Machinery and Equipment, Gross	22,177	20,611
Furniture and Fixtures, Gross	645	654
Leasehold Improvements, Gross	3,895	3,367
Capitalized Computer Software, Gross	2,580	2,519
Property, Plant and Equipment, Gross	29,297	27,151
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(16,849)	(15,342)
Property and equipment, net	$ 12,448	$ 11,809

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, Rent Expense, Net	$ 1	$ 0.9
Description of Lessor Leasing Arrangements, Operating Leases	No
Purchase commitments with vendors	$ 19.4		$ 15.7

Preferred Stock and Stockhold36

Preferred Stock and Stockholders' Equity - Preferred, Common and Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense	$ 12,554	$ 8,176
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, shares issued	36,739,875		36,303,219
Treasury stock, shares	0		0
Treasury stock, value	$ 0		$ 0
Treasury stock acquired, average cost per share			$ 0
Preferred stock, shares outstanding	0		0
Common stock, shares outstanding	36,739,875		36,303,219

Preferred Stock and Stockhold37

Preferred Stock and Stockholders' Equity - Equity Award Plans Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jun. 30, 2013Periodshares	Apr. 01, 2017USD ($)Period$ / sharesshares	Apr. 02, 2016USD ($)	Dec. 31, 2016$ / sharesshares	Dec. 27, 2014shares	May 31, 2013shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense \| $		$ 12,554	$ 8,176
Stock-based compensation expense \| $		$ 12,554	8,176
ESPP Purchase Right
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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, Term of Purchase Period	6 months
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.
Number of shares authorized	439,422	439,422
Percentage of outstanding stock, maximum		1.50%
Number of additional shares authorized					439,422
Stock-based compensation expense \| $		$ 2,200	$ 800
Number of purchase periods \| Period		1
Shares issued in period		192,107
Per share weighted average price of shares purchased \| $ / shares		$ 25.96
Compensation cost not yet recognized \| $		$ 6,600
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%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding		1,225,192		1,391,171
Description		Vested options may be exercised up to ten years from the vesting commencement date.
Compensation cost not yet recognized \| $		$ 2,900
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price \| $ / shares		$ 35.55		$ 45.55
RSUs awarded		1,141,725
Compensation cost not yet recognized \| $		$ 60,400
Restricted Stock Units (RSUs) \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)		1 year
Restricted Stock Units (RSUs) \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)		4 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights (as a percent)		149.00%
Options outstanding		129,750		2,611
Unvested performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding		129,750		1,488
Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense \| $		$ 700
RSUs awarded				193,000
Compensation cost not yet recognized \| $		$ 2,400
Performance Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights (as a percent)		0.00%
Performance Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights (as a percent)		200.00%
Equity Incentive Plan Twenty Thirteen
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		1,464,740				2,929,481
Percentage of outstanding stock, maximum				5.00%
Options, maximum exercisable term for general termination (in months)		3 months
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, 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
Equity Incentive Plan Twenty Thirteen \| Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance		4,044,639
Equity Incentive Plan Twenty Thirteen \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)		4 years
Award vesting rights (as a percent)		25.00%
Expiration period (in years)		10 years
Expiration period after termination of employment (in days, months)		3 months
Equity Incentive Plan Twenty Twelve \| Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance		357,966
Equity Incentive Plan Twenty Twelve \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period after termination of employment (in days, months)		30 days
Unit Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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 Stockhold38

Preferred Stock and Stockholders' Equity - Stock Option Activity Table (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning Balance	1,391,171
Options granted	0
Options exercised	(55,225)
Options canceled	(110,754)
Ending Balance	1,225,192	1,391,171
Options exercisable	854,100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted average exercise price, outstanding, beginning balance	$ 21.19
Weighted average exercise price, options granted	0
Weighted average exercise price, options exercised	10.52
Weighted average exercise price, options canceled	25.44
Weighted average exercise price, outstanding, ending balance	21.29	$ 21.19
Weighted average exercise price, options exercisable	$ 17.29
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term	6 years 1 month 19 days	6 years 4 months 21 days
Weighted average remaining contractual term, options exercisable	6 years 1 month 39 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Intrinsic Value [Abstract] [Roll Forward]
Intrinsic value, beginning balance	$ 35,076
Intrinsic value, ending balance	19,663	$ 35,076
Intrinsic value, options exercisable	$ 15,592

Preferred Stock and Stockhold39

Preferred Stock and Stockholders' Equity - RSU Activity Table (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Paid for Tax Withholding for Share Based Compensation	$ 4,339	$ 1,385
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Balance - December 26, 2015	2,466,049
RSUs awarded	1,141,725
RSUs released	(313,697)
RSUs forfeited	(120,108)
Balance - October 1, 2016	3,173,969		2,466,049
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Balance - December 26, 2015	$ 26.66
RSUs awarded	34.78
RSUs released	23.13
RSUs forfeited	25.21
Balance - October 1, 2016	$ 29.98		$ 26.66
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Weighted average remaining contractual life (years)	1 year 5 months 29 days		1 year 4 months 21 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Intrinsic Value [Abstract] [Roll Forward]
Balance — December 31, 2016	$ 112,835		$ 112,329
Balance — April 1, 2017	$ 112,835		$ 112,329

Preferred Stock and Stockhold40

Preferred Stock and Stockholders' Equity - Fair Value of Option Awards amd ESPP Purchase Rights Granted (Details) - $ / shares	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend rate (percent)	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
Risk-free interest rate	0.67%	0.42%
Expected volatility (percent)	58.30%	55.80%
Grant date fair value per share	$ 11.94	$ 7.75
Maximum \| ESPP Purchase Right
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years	2 years
Risk-free interest rate	1.00%	0.74%
Expected volatility (percent)	68.60%	67.20%
Grant date fair value per share	$ 16.42	$ 12.26

Preferred Stock and Stockhold41

Preferred Stock and Stockholders' Equity - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 12,554	$ 8,176
Total stock-based compensation expense	12,554	8,176
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	677	470
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	4,708	2,946
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	3,857	2,293
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	3,312	$ 2,467
Inventories [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount	$ 300		$ 100

Defined Contribution Plans - Ad

Defined Contribution Plans - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Postemployment Benefits [Abstract]
Defined benefit plan, contributions by employer	$ 1.1	$ 0.8

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Net	$ 7,100
Deferred Tax Assets, Valuation Allowance	500
Income tax benefit (provision)	3,912	$ (579)
Deferred Tax Assets, Net of Valuation Allowance	6,600
Deferred Tax Assets, Other	7,600
Excess tax benefits	$ (1,700)

Net Income per Share (Details)

Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income available to common stockholders, basic	$ (2,237)	$ 2,971
Weighted average number of shares outstanding, basic	36,563	34,633
Diluted (in shares)	36,563	36,546
Basic (in dollars per share)	$ (0.06)	$ 0.09
Diluted (in dollars per share)	$ (0.06)	$ 0.08
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental common shares attributable to dilutive effect of share-based payment arrangements	0	689
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	0	984
Performance Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental common shares attributable to dilutive effect of share-based payment arrangements	0	14
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	0	226
Option Plans Awards To Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	148	274

Segment Information - Additiona

Segment Information - Additional Information (Detail)	3 Months Ended
Segment Information - Additional Information (Detail)	Apr. 01, 2017Segment
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
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Segment Reporting Revenue Reconciling Item [Line Items]
Total revenue	$ 69,567	$ 67,211
Long-lived assets	12,448		$ 11,809
United States
Segment Reporting Revenue Reconciling Item [Line Items]
Total revenue	54,431	52,447
Long-lived assets	10,457		9,907
Rest of Americas
Segment Reporting Revenue Reconciling Item [Line Items]
Total revenue	2,725	3,016
Europe, Middle East and Africa
Segment Reporting Revenue Reconciling Item [Line Items]
Total revenue	8,628	7,083
Asia Pacific
Segment Reporting Revenue Reconciling Item [Line Items]
Total revenue	3,783	$ 4,665
Other
Segment Reporting Revenue Reconciling Item [Line Items]
Long-lived assets	$ 1,991		$ 1,902

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Subsequent Event [Line Items]
Treasury stock, shares	0	0
Treasury stock, value	$ 0	$ 0