Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ACIA | |
Entity Registrant Name | Acacia Communications, Inc. | |
Entity Central Index Key | 1,651,235 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,422,863 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 122,914 | $ 27,610 |
Marketable securities | 52,641 | |
Accounts receivable | 101,749 | 41,260 |
Inventory | 29,194 | 27,920 |
Prepaid expenses and other current assets | 3,685 | 3,179 |
Deferred product costs | 1,688 | 3,476 |
Total current assets | 311,871 | 103,445 |
Restricted cash | 2,181 | |
Property and equipment, net | 21,119 | 15,925 |
Deferred tax asset | 16,342 | 11,189 |
Other assets | 399 | 185 |
Total assets | 351,912 | 130,744 |
Current liabilities: | ||
Accounts payable | 48,389 | 25,015 |
Accrued liabilities | 31,486 | 15,521 |
Deferred revenue | 7,957 | 7,762 |
Total current liabilities | 87,832 | 48,298 |
Preferred stock warrant liability | 3,254 | |
Other long-term liabilities | 1,589 | 396 |
Total liabilities | 89,421 | 51,948 |
Commitments and contingencies (Note 11) | ||
Redeemable convertible preferred stock (Note 8): | ||
Redeemable convertible preferred stock, $0.0001 par value; 24,508 shares authorized at December 31, 2015; 24,177 shares issued and outstanding at December 31, 2015 | 70,780 | |
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 5,000 shares authorized at September 30, 2016; none issued and outstanding at September 30, 2016 | ||
Common stock, $0.0001 par value; 150,000 and 36,330 shares authorized at September 30, 2016 and December 31, 2015, respectively; 35,723 and 6,669 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 4 | 1 |
Additional paid-in capital | 188,084 | |
Accumulated other comprehensive loss | (17) | |
Retained earnings | 74,420 | 8,015 |
Total stockholders' equity | 262,491 | 8,016 |
Total liabilities, redeemable convertible preferred stock and stockholders' equity | $ 351,912 | $ 130,744 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Redeemable convertible preferred stock, shares authorized | 24,508,000 | |
Redeemable convertible preferred stock, shares outstanding | 24,177,000 | |
Preferred stock, par value | $ 0.0001 | |
Preferred stock, shares authorized | 5,000,000 | |
Preferred stock, shares issued | 0 | |
Preferred stock, shares outstanding | 0 | |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 36,330,000 |
Common stock, shares issued | 35,723,000 | 6,669,000 |
Common stock, shares outstanding | 35,723,000 | 6,669,000 |
Redeemable Convertible Preferred Stock | ||
Redeemable convertible preferred stock, par value | $ 0.0001 | |
Redeemable convertible preferred stock, shares authorized | 24,508,000 | |
Redeemable convertible preferred stock, shares issued | 24,177,000 | |
Redeemable convertible preferred stock, shares outstanding | 24,177,000 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 135,304 | $ 65,419 | $ 335,985 | $ 170,509 |
Cost of revenue | 72,004 | 40,209 | 183,327 | 108,290 |
Gross profit | 63,300 | 25,210 | 152,658 | 62,219 |
Operating expenses: | ||||
Research and development | 18,915 | 9,604 | 56,168 | 26,327 |
Sales, general and administrative | 7,541 | 3,005 | 20,244 | 8,060 |
Total operating expenses | 26,456 | 12,609 | 76,412 | 34,387 |
Income from operations | 36,844 | 12,601 | 76,246 | 27,832 |
Other income (expense): | ||||
Interest income (expense), net | 156 | (6) | 184 | (138) |
Change in fair value of preferred stock warrant liability | 0 | (370) | (3,361) | (1,813) |
Other income (expense) | 10 | (32) | (68) | 135 |
Total other income (expense), net | 166 | (408) | (3,245) | (1,816) |
Income before provision for income taxes | 37,010 | 12,193 | 73,001 | 26,016 |
Provision for income taxes | 2,122 | 3,354 | 5,918 | 8,133 |
Net income | 34,888 | 8,839 | 67,083 | 17,883 |
Accretion of redeemable convertible preferred stock | 0 | (1,097) | (1,722) | (3,257) |
Undistributed earnings attributable to participating securities | 0 | (6,094) | (23,959) | (11,582) |
Net income attributable to common stockholders - basic and diluted | $ 34,888 | $ 1,648 | $ 41,402 | $ 3,044 |
Net income per share attributable to common stockholders: | ||||
Basic | $ 0.97 | $ 0.25 | $ 1.95 | $ 0.48 |
Diluted | $ 0.86 | $ 0.20 | $ 1.64 | $ 0.37 |
Weighted-average shares used to compute net income per share attributable to common stockholders: | ||||
Basic | 35,922 | 6,534 | 21,195 | 6,357 |
Diluted | 40,708 | 8,422 | 25,183 | 8,146 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 34,888 | $ 8,839 | $ 67,083 | $ 17,883 |
Other comprehensive loss: | ||||
Changes in unrealized loss on marketable securities, net of income taxes of $6 for the three and nine months ended September 30, 2016 | (17) | (17) | ||
Comprehensive income | $ 34,871 | $ 8,839 | $ 67,066 | $ 17,883 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Changes in unrealized loss on marketable securities, tax | $ 6 | $ 6 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS (DEFICIT) EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Other Comprehensive Loss [Member] | (Accumulated Deficit) Retained Earnings [Member] | Redeemable Convertible Preferred Stock |
Temporary equity, beginning balance, shares at Dec. 31, 2014 | 24,177 | |||||
Temporary equity, beginning balance at Dec. 31, 2014 | $ 66,427 | |||||
Beginning balance, shares at Dec. 31, 2014 | 6,138 | |||||
Beginning balance at Dec. 31, 2014 | $ (29,176) | $ 1 | $ (29,177) | |||
Accretion of preferred stock issuance costs | (60) | $ (60) | 60 | |||
Accretion to redemption value | (3,197) | (632) | (2,565) | $ 3,197 | ||
Vesting of restricted common stock, shares | 112 | |||||
Exercise of common stock options, shares | 343 | |||||
Exercise of common stock options | 147 | 147 | ||||
Stock-based compensation expense | 545 | 545 | ||||
Net income | 17,883 | 17,883 | ||||
Temporary equity, ending balance, shares at Sep. 30, 2015 | 24,177 | |||||
Temporary equity, ending balance at Sep. 30, 2015 | $ 69,684 | |||||
Ending balance, in shares at Sep. 30, 2015 | 6,593 | |||||
Ending balance at Sep. 30, 2015 | $ (13,858) | $ 1 | (13,859) | |||
Temporary equity, beginning balance, shares at Dec. 31, 2015 | 24,177 | 24,177 | ||||
Temporary equity, beginning balance at Dec. 31, 2015 | $ 70,780 | |||||
Beginning balance, shares at Dec. 31, 2015 | 6,669 | |||||
Beginning balance at Dec. 31, 2015 | $ 8,016 | $ 1 | 8,015 | |||
Accretion of preferred stock issuance costs | (94) | (94) | 94 | |||
Accretion to redemption value | (1,628) | (950) | (678) | $ 1,628 | ||
Conversion of redeemable convertible preferred stock into common stock upon initial public offering, shares | 24,177 | (24,177) | ||||
Conversion of redeemable convertible preferred stock into common stock upon initial public offering | 72,502 | $ 2 | 72,500 | $ (72,502) | ||
Reclassification of redeemable convertible preferred stock warrant liability into additional paid-in capital upon conversion to common stock warrants | 6,615 | 6,615 | ||||
Issuance of common stock in relation to initial public offering, net of offering costs incurred of $4,235, shares | 4,570 | |||||
Issuance of common stock in relation to initial public offering, net of offering costs incurred of $4,235 | $ 93,522 | $ 1 | 93,521 | |||
Vesting of restricted common stock, shares | 64 | |||||
Exercise of common stock options, shares | 243 | 243 | ||||
Exercise of common stock options | $ 356 | 356 | ||||
Stock-based compensation expense | 16,136 | 16,136 | ||||
Unrealized losses on marketable securities, net of tax of $6 | (17) | $ (17) | ||||
Net income | 67,083 | 67,083 | ||||
Ending balance, in shares at Sep. 30, 2016 | 35,723 | |||||
Ending balance at Sep. 30, 2016 | $ 262,491 | $ 4 | $ 188,084 | $ (17) | $ 74,420 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS (DEFICIT) EQUITY (Parenthetical) (Unaudited) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Net offering costs incurred | $ 4,235 |
Unrealized losses on marketable securities, tax | $ 6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 67,083 | $ 17,883 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 6,536 | 3,164 |
Stock-based compensation | 16,136 | 545 |
Deferred income taxes | (5,153) | |
Other non-cash charges | 61 | 80 |
Change in fair value of preferred stock warrant liability | 3,361 | 1,813 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (60,489) | (34,447) |
Inventory | (1,274) | (4,796) |
Prepaid expenses and other current assets | (2,625) | 711 |
Deferred product costs | 1,788 | (480) |
Restricted cash | (2,181) | |
Other assets | (172) | (77) |
Accounts payable | 23,911 | 17,583 |
Accrued liabilities | 15,999 | 6,897 |
Deferred revenue | 195 | (899) |
Other long-term liabilities | 1,193 | |
Net cash provided by operating activities | 64,369 | 7,977 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (12,267) | (8,446) |
Purchases of marketable securities | (52,719) | |
Deposits | (42) | (6) |
Net cash used in investing activities | (65,028) | (8,452) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of long-term debt | (2,155) | |
Payment of capital lease obligation | (34) | (39) |
Deferred financing costs | (4) | |
Proceeds from initial public offering, net of underwriting discounts and commissions | 97,757 | |
Payment of public offering costs | (2,116) | (563) |
Proceeds from the exercise of common stock options | 356 | 147 |
Net cash provided by (used in) financing activities | 95,963 | (2,614) |
Effect of exchange rates on cash | (2) | |
Net increase (decrease) in cash and cash equivalents | 95,304 | (3,091) |
Cash and cash equivalents—Beginning of period | 27,610 | 21,128 |
Cash and cash equivalents—End of period | 122,914 | 18,037 |
Supplemental cash flow disclosures: | ||
Cash paid for income taxes, net of refunds | 2,801 | 2,419 |
Cash paid for interest | 53 | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Capital expenditures incurred but not yet paid | 307 | 519 |
Public offering costs incurred but not yet paid | 946 | 838 |
Property and equipment acquired under capital lease | 96 | |
Accretion of redemption value on redeemable convertible preferred stock | 1,628 | 3,197 |
Accretion of redeemable convertible preferred stock issuance costs | 94 | $ 60 |
Conversion of redeemable convertible preferred stock into common stock | 72,502 | |
Reclassification to additional paid-in capital of fair value of preferred stock warrant liability upon conversion to common stock warrants | $ 6,615 |
Nature of the Business and Oper
Nature of the Business and Operations | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the Business and Operations | 1. NATURE OF THE BUSINESS AND OPERATIONS Acacia Communications, Inc. was incorporated on June 2, 2009, as a Delaware corporation. Acacia Communications, Inc. and its wholly-owned subsidiaries (the “Subsidiaries”) are collectively referred to as the “Company”. The Company is a leading provider of high-speed coherent interconnect products that are designed to improve the capacity, performance, intelligence and cost of communications networks relied upon by cloud infrastructure operators and content and communications service providers. The Company’s products include a series of low-power coherent digital signal processors and silicon photonic integrated circuits integrated into families of optical interconnect modules with transmission speeds ranging from 100 to 400 gigabits per second for use in long-haul, metro and inter-data center markets. The Company is headquartered in Maynard, Massachusetts, and has wholly-owned subsidiaries in Denmark, which commenced operations in 2009, Bermuda and Ireland, which commenced operations in the fourth quarter of 2015, Germany, China and the United Kingdom, which commenced operations in the second quarter of 2016, and India, which commenced operations in the third quarter of 2016. On May 18, 2016, the Company closed its initial public offering (“IPO”), in which the Company issued and sold 4,570,184 shares of common stock and certain selling stockholders sold an additional 604,816 shares, inclusive of the underwriters’ option to purchase additional shares that was exercised in full. The price per share to the public was $23.00. The Company received aggregate proceeds of approximately $97.8 million from the IPO, net of underwriters’ discounts and commissions, before deduction of offering expenses of approximately $4.2 million. The Company received no proceeds from the sale of shares by the selling stockholders. Upon the closing of the IPO, all shares of the Company’s outstanding redeemable convertible preferred stock (the “preferred stock”) automatically converted into 24,177,495 shares of common stock. In addition, the outstanding redeemable convertible preferred stock warrants (the “preferred stock warrants”) automatically converted into common stock warrants. As a result, the Company performed a final remeasurement of the preferred stock warrant liability at the closing date of the IPO and recorded an expense of $3.6 million arising from the revaluation during the three months ended June 30, 2016. Following the remeasurement, the preferred stock warrant liability of $6.6 million was reclassified to additional paid-in capital. Certain restricted stock units (“RSUs”) granted to employees prior to the IPO vest upon the satisfaction of both a service condition and a performance condition. These RSUs with both a service condition and performance condition are collectively referred to as “Performance Awards” in the following discussion. The service condition for a majority of the Performance Awards will be satisfied over a period of four years. The performance condition was satisfied on the closing of the Company’s IPO. No stock-based compensation expense had been recognized for the Performance Awards prior to the IPO because an IPO is not considered probable until it occurs. In May 2016, the Company began recording stock-based compensation expense based on the grant-date fair value of the Performance Awards using the accelerated attribution method. See Note 9 for further details. On October 13, 2016, the Company closed a follow-on public offering in which the Company issued and sold 1,210,302 shares of common stock and certain selling stockholders sold an additional 3,289,698 shares. The underwriters were granted a 30-day option to purchase up to an additional 675,000 shares from certain of the selling stockholders. The price per share to the public was $100.00. The Company received aggregate proceeds of $116.8 million from the follow-on offering, net of underwriters’ discounts and commissions, before deduction of offering expenses of approximately $1.1 million. The Company received no proceeds from the sale of shares by the selling stockholders. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The unaudited condensed consolidated financial statements include the accounts of Acacia Communications, Inc., and Subsidiaries and have been prepared in accordance with accounting policies generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. For further information, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the final prospectus related to the Company’s follow-on public offering, which was filed with the SEC pursuant to Rule 424(b) of the Securities Act of 1933 on October 7, 2016 (the “Prospectus”). There have been no significant changes in the Company’s accounting policies from those disclosed in the Prospectus that have had a material impact on the Company’s condensed consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements as of and for the year ended December 31, 2015, and in management’s opinion, include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of September 30, 2016, its results of operations for the three and nine months ended September 30, 2016 and 2015, its statements of comprehensive income for the three and nine months ended September 30, 2016 and 2015, its statements of redeemable convertible preferred stock and stockholders’ (deficit) equity for the nine months ended September 30, 2016 and 2015, and its cash flows for the nine months ended September 30, 2016 and 2015. All intercompany balances and transactions have been eliminated in consolidation. The financial data and the other financial information disclosed in the notes to these condensed consolidated financial statements related to these three- and nine-month periods are also unaudited. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full fiscal year or any other period. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Financial Instruments Cash equivalents include all highly liquid investments with an original maturity of three months or less. Cash equivalents consist of bank deposit accounts, money market funds, repurchase agreements and commercial paper. The Company’s marketable debt securities have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the classifications at each balance sheet date. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. The Company’s marketable debt securities are carried at fair value, with unrealized gains and losses, net of taxes, reported as a component of accumulated other comprehensive income in stockholders’ equity, with the exception of unrealized losses believed to be other-than-temporary which are reported in earnings in the current period. Restricted Cash The Company has a restricted cash balance at September 30, 2016 of $2.2 million. The restricted cash balance constitutes funds held in escrow to fund future tenant improvements related to the Company’s Maynard, Massachusetts facility. Under the terms of the lease agreement, the Company will not have title to the tenant improvements. As the escrow funds are spent, the Company will record a prepaid asset which will be amortized over the lease term. Accordingly, the Company classifies changes in restricted cash as operating activities within our condensed consolidated statements of cash flows. Recently Adopted Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The amendments in ASU 2016-15, required to be updated for all annual periods and interim reporting periods beginning after December 15, 2017, were adopted early by the Company in the third quarter of 2016 and were applied to its related unaudited condensed consolidated financial statements on a retrospective basis. The adoption of these amendments had an immaterial impact on the statement of cash flows through September 30, 2016 as the cash flow issues covered by ASU 2016-15 either did not apply to the Company, or the Company’s presentation and classification of the cash flow issue was already prepared in accordance with the guidance prescribed by ASU 2016-15. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period Compensation—Stock Compensation Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Financial Instruments | 3. FINANCIAL INSTRUMENTS The following table sets forth the Company’s cash, cash equivalents and marketable securities as of September 30, 2016 (in thousands): Amortized Gross Unrealized Estimated Cash and Marketable Cost Gains Losses Fair Value Cash equivalents Securities Cash $ 45,160 $ — $ — $ 45,160 $ 45,160 $ — Money market funds 45,754 — — 45,754 45,754 — Repurchase agreements 29,000 — — 29,000 29,000 — U.S. treasury bonds 5,011 — (1 ) 5,010 — 5,010 Commercial paper 20,278 — — 20,278 3,000 17,278 Corporate debt securities 30,375 — (22 ) 30,353 — 30,353 Total $ 175,578 $ — $ (23 ) $ 175,555 $ 122,914 $ 52,641 As of December 31, 2015, the Company did not carry any investments in marketable securities. As of September 30, 2016, all of the securities in the Company’s portfolio had contractual maturities of less than one year. None of the Company’s marketable securities were sold or matured during the three and nine months ended September 30, 2016. At September 30, 2016, the Company believed that the unrealized losses on its available-for-sale investments were temporary. The investments with unrealized losses consisted primarily of corporate debt securities. In making the determination that the decline in fair value of these securities was temporary, the Company considered various factors, including, but not limited to: the length of time each security was in an unrealized loss position; the extent to which fair value was less than cost; the financial condition and near-term prospects of the issuers; and the Company’s intent not to sell these securities and the assessment that it is more likely than not that the Company would not be required to sell these securities before the recovery of their amortized cost basis. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. INVENTORY Inventory consisted of the following (in thousands): September 30, 2016 December 31, 2015 Raw materials $ 14,910 $ 16,023 Work-in-process 4,476 2,155 Finished goods 9,808 9,742 Inventory $ 29,194 $ 27,920 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): September 30, 2016 December 31, 2015 Engineering laboratory equipment $ 29,676 $ 17,757 Computer software 2,818 2,398 Computer equipment 2,668 1,640 Furniture and fixtures 408 370 Leasehold improvements 1,026 1,017 Equipment under capital lease — 96 Construction in progress 2,364 3,952 Total property and equipment 38,960 27,230 Less: Accumulated depreciation (17,841 ) (11,305 ) Property and equipment, net $ 21,119 $ 15,925 Depreciation expense was $2.7 million and $1.2 million for the three months ended September 30, 2016 and 2015, respectively, and $6.5 million and $3.2 million for the nine months ended September 30, 2016 and 2015, respectively. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 6. ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): September 30, 2016 December 31, 2015 Employee-related liabilities $ 6,152 $ 3,822 Outsourced foundry services 170 4,113 Goods and services received not invoiced 4,651 1,974 Accrued income taxes 9,136 1,019 Accrued manufacturing expenses 3,707 299 Other accrued liabilities 7,670 4,294 Total accrued liabilities $ 31,486 $ 15,521 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 7. FAIR VALUE MEASUREMENT The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: Level 1 —Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. The Company’s cash equivalents consist of money market funds, repurchase agreements and corporate debt securities with an original maturity of three months or less. The Company’s investments in money market funds, repurchase agreements, commercial paper, corporate bonds and U.S. government The fair value of these assets and liabilities measured on a recurring basis was determined using the following inputs as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total Fair (Level 1) (Level 2) (Level 3) Value Assets: Money market funds $ — $ 45,754 $ — $ 45,754 Repurchase agreements — 29,000 — 29,000 U.S. treasury bonds — 5,010 — 5,010 Commercial paper — 20,278 — 20,278 Corporate debt securities — 30,353 — 30,353 Total $ — $ 130,395 $ — $ 130,395 December 31, 2015 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total Fair (Level 1) (Level 2) (Level 3) Value Assets: Money market fund $ — $ 21,524 $ — $ 21,524 Liabilities: Preferred stock warrant liability $ — $ — $ 3,254 $ 3,254 The Company’s Level 3 liability as of December 31, 2015, measured and recorded on a recurring basis, consisted of the preferred stock warrant liability. The estimated fair value of the warrant liability was determined using the Black-Scholes option-pricing model. The warrants to purchase shares of preferred stock were converted into warrants to purchase shares of common stock upon the closing of the IPO. As a result, the Company reclassified the fair value of the preferred stock warrant liability to additional paid-in capital upon the closing of the IPO (see Note 8). For certain other financial instruments, including accounts receivable, restricted cash, accounts payable, and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2016 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | 8 . REDEEMABLE CONVERTIBLE PREFERRED STOCK Redeemable Convertible Preferred Stock Upon the closing of the Company’s IPO, all shares of the Company’s then-outstanding preferred stock automatically converted on a one-for-one basis into an aggregate of 24,177,495 shares of the Company’s common stock. Preferred stock outstanding as of December 31, 2015 consisted of the following (in thousands): December 31, 2015 Net Shares Shares Carrying Liquidation Authorized Outstanding Value Preference Series A preferred stock 6,009 6,009 $ 8,900 $ 6,009 Series B preferred stock 10,764 10,554 21,741 15,100 Series C preferred stock 3,901 3,866 13,462 10,317 Series D preferred stock 3,834 3,748 26,677 22,000 Total 24,508 24,177 $ 70,780 $ 53,426 Prior to the closing of the IPO, changes in the carrying value of the preferred stock resulted from the accretion to redemption value. During the nine months ended September 30, 2016, the Company accreted an additional $1.7 million of redemption value on the preferred stock. Upon conversion of the preferred stock on May 18, 2016, the Company reclassified $72.5 million from temporary equity to additional paid-in capital. Preferred Stock Warrants Prior to the closing of the IPO, the Company remeasured the fair value of the preferred stock warrants at each balance sheet date. The fair value of the outstanding preferred stock warrants was classified within non-current liabilities on the condensed consolidated balance sheets, and any changes in fair value were recognized as a component of Other Income (Expense) in the condensed consolidated income statements. Upon the closing of the IPO, the preferred stock warrants automatically converted into common stock warrants. As a result, the Company performed the final remeasurement of the preferred stock warrants at the closing date of the IPO and recorded an expense of $3.6 million arising from the revaluation during the three months ended June 30, 2016. Following the remeasurement, the preferred stock warrant liability of $6.6 million was reclassified to additional paid-in capital. The valuation technique used to measure fair value for the Company’s preferred stock warrants, which were considered Level 3 fair value estimates within the fair value hierarchy, was the Black-Scholes option pricing model. The significant unobservable inputs used in the fair value measurement of the Company’s preferred stock warrants was the fair value of the Company’s Series B and Series C Preferred Stock. We also utilized risk-free interest rate, expected dividend yield, expected volatility and expected term as observable inputs with the fair value of the Series B and Series C Preferred Stock in determining the fair value of the preferred stock warrants. There is not a direct interrelationship between the unobservable inputs and the observable inputs. The assumptions used in determining the fair values of preferred stock warrants as of May 18, 2016, which was the closing date of the IPO and the date when the Company performed the final remeasurement of the preferred stock warrants, and December 31, 2015 were as follows: May 18, 2016 December 31, 2015 Risk-free interest rate 1.2% - 1.4% 1.8% - 2.1% Expected dividend yield None None Expected volatility 57.7% - 59.6% 58.7% - Expected term (in years) 4.8 - 6.2 5.2 - 6.6 Fair value of Series B preferred stock $ 28.45 $ 14.59 Fair value of Series C preferred stock $ 28.45 $ 14.65 A summary of the changes in the Company’s preferred stock warrant liability measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2016 and 2015 is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Preferred stock warrant liability at beginning of period $ — $ 2,543 $ 3,254 $ 1,100 Change in fair value — 370 3,361 1,813 Reclassification of preferred stock warrant liability to additional paid-in capital upon conversion to common stock warrants — — (6,615 ) — Preferred stock warrant liability at end of period $ — $ 2,913 $ — $ 2,913 Preferred Stock Upon the closing of the IPO on May 18, 2016, the Company filed a Restated Certificate of Incorporation, which authorized the issuance of preferred stock with rights and preferences, including voting rights, designated from time to time by the board of directors. As of September 30, 2016, there were 5,000,000 shares of preferred stock authorized with a par value of $0.0001 per share, and no shares of preferred stock issued or outstanding. |
Stock Compensation Plans
Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation Plans | 9. STOCK COMPENSATION PLANS The following table summarizes the classification of stock-based compensation in the condensed consolidated income statements for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of revenue $ 504 $ 24 $ 1,196 $ 42 Research and development 3,782 160 9,360 378 Sales, general and administrative 2,389 47 5,580 125 Total stock-based compensation $ 6,675 $ 231 $ 16,136 $ 545 The following table summarizes stock-based compensation expense by award type for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Stock options $ 623 $ 202 $ 1,391 $ 452 Restricted stock awards 29 29 76 93 Restricted stock units 5,740 — 14,235 — Employee stock purchase plan 283 — 434 — Total stock-based compensation $ 6,675 $ 231 $ 16,136 $ 545 Stock Options The estimated grant-date fair value of the Company’s stock option awards issued to employees was calculated using the Black-Scholes option-pricing model, based on the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Risk-free interest rate 1.2% - 1.3% 1.9% 1.2% - 1.6% 1.7% - 1.9% Expected dividend yield None None None None Expected volatility 59.5% - 60.0% 61.4% 59.5% - 60.0% 61.4% - 70.9% Expected term (in years) 6.3 6.3 6.3 6.3 - 6.5 Risk-free Interest Rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term. Expected Dividend Yield. The expected dividend yield assumption is based on the fact that the Company has never paid cash dividends and has no present intention to pay cash dividends. Expected Volatility. Since there is limited trading history associated with the Company’s common stock, the expected volatility was derived from the average historical stock volatilities of several unrelated public companies within the Company’s industry over a period equivalent to the expected term of the stock option grants. Expected Term. The expected term represents the period that stock options awards are expected to be outstanding. For option grants that are considered to be “plain vanilla,” the Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. The Company uses the simplified method because it does not have sufficient historical option exercise data to provide a reasonable basis upon which to estimate the expected term. Prior to the Company’s IPO, the fair value of the shares of common stock underlying stock options was historically established by the Company’s board of directors, and was based in part upon a valuation provided by a third-party valuation specialist. Subsequent to the completion of the IPO, the Company uses the market closing price of its common stock as reported on the Nasdaq Global Select Market to determine the fair value of the shares of common stock underlying stock options. A summary of stock option activity under the Company’s equity incentive plans for the nine months ended September 30, 2016 is as follows: Number of Options (in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2015 2,472 $ 2.85 7.7 $ 28,844 Granted 517 $ 19.39 Exercised (243 ) $ 1.46 $ 7,327 Cancelled (15 ) $ 4.48 Outstanding at September 30, 2016 2,731 $ 6.10 7.5 $ 265,376 Vested and expected to vest at: September 30, 2016 2,731 $ 6.10 7.5 $ 265,376 December 31, 2015 2,394 $ 2.81 7.7 $ 28,031 Exercisable at: September 30, 2016 1,197 $ 1.67 6.4 $ 121,656 December 31, 2015 919 $ 0.82 6.6 $ 12,590 As of September 30, 2016 and December 31, 2015, there was $7.7 million and $3.3 million of unrecognized compensation cost related to unvested common stock options, which is expected to be recognized over weighted-average periods of 3.3 years and 3.4 years, respectively. The weighted-average grant date fair value of stock options granted was $34.82 and $5.91 during the three months ended September 30, 2016 and 2015, respectively, and $10.97 and $3.65 for the nine months ended September 30, 2016 and 2015, respectively. Restricted Stock Awards A summary of the changes in the Company’s restricted stock awards during the nine months ended September 30, 2016 is as follows: Restricted Shares (in thousands) Weighted-Average Grant Date Fair Value Outstanding at December 31, 2015 192 $ 1.39 Vested (64 ) $ 1.39 Outstanding at September 30, 2016 128 $ 1.39 Restricted Stock Units The Company granted 1.3 million RSUs to employees, directors and executives under the 2009 Stock Plan which vest upon achievement of a service condition and a performance condition. The performance condition was satisfied upon the closing of the Company’s IPO on May 18, 2016, resulting in the recognition of approximately $4.9 million of stock-based compensation expense related to these RSUs through that date. During the nine months ended September 30, 2016, the Company granted 780,000 RSUs to employees and executives which include only a time-based service condition, and 200,000 RSUs to executives which have a market condition (“market-based RSUs”). These market-based RSUs vest upon achievement of specific stock price targets, provided that if the price targets are not achieved on or prior to May 18, 2020, then such grant shall automatically terminate. The first market condition was achieved in June 2016 and the second market condition was achieved in July 2016, resulting in the recognition of $800,000 and $2.3 million of stock-based compensation expense related to these RSUs, respectively, during the nine months ended September 30, 2016. The cost of RSUs with only a service condition is determined using the fair value of the Company’s common stock on the date of grant, and compensation is recognized on a straight-line basis over the requisite vesting period. For the market-based RSUs, the Company estimated the fair value using a Monte Carlo valuation model on the date of grant, using the following weighted-average assumptions: Risk-free interest rate 1.1% Expected dividend yield None Expected volatility 58.9% Expected term (in years) 1.4 Grant date fair value of underlying shares $ 22.00 As soon as practicable following each vesting date, the Company will issue to the holder of the RSUs the number of shares of common stock equal to the aggregate number of RSUs that have vested. Notwithstanding the foregoing, the Company may, in its sole discretion, in lieu of issuing shares of common stock to the holder of the RSUs, pay the holder an amount in cash equal to the fair market value of such shares of common stock. A summary of the changes in the Company’s RSUs during the nine months ended September 30, 2016 is as follows: Restricted Shares (in thousands) Weighted-Average Grant Date Fair Value Outstanding at December 31, 2015 1,064 $ 12.16 RSUs granted during 2015 which were contingent upon IPO 450 $ 13.65 RSUs granted during 2016 980 $ 27.00 Outstanding at September 30, 2016 2,494 $ 18.26 At September 30, 2016, there was $31.3 million of total unrecognized compensation cost related to unvested RSUs, which will be recognized over a weighted-average period of 3.5 years. Amended and Restated 2016 Employee Stock Purchase Plan The Company’s board of directors adopted the Amended and Restated 2016 Employee Stock Purchase Plan (“2016 ESPP”), which became effective on May 18, 2016. The 2016 ESPP initially will provide participating employees with the opportunity to purchase an aggregate of 700,000 shares of the Company’s common stock. The number of shares of common stock reserved for issuance under the 2016 ESPP will increase automatically on the first day of each January through 2026 On each purchase date, eligible employees will purchase common stock at a price per share equal to 85% of the lesser of the fair market value of the Company’s common stock on (i) the first trading day of the applicable offering period and (2) the last trading day of each purchase period in the applicable offering period. |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Attributable to Common Stockholders | 10. NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Basic and diluted net income per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company considers its preferred stock to be participating securities. In the event a cash dividend is paid on common stock, the holders of preferred stock are also entitled to a proportionate share of any such dividend as if they were holders of common stock (on an as-if converted basis). The holders of the preferred stock do not have a contractual obligation to share in losses. In accordance with the two-class method, earnings allocated to these participating securities and the related number of outstanding shares of the participating securities, which include contractual participation rights in undistributed earnings, have been excluded from the computation of basic and diluted net income per share attributable to common stockholders. As a result of the conversion of preferred stock on May 18, 2016, the amount of earnings allocated to participating securities was based on the period the participating securities were outstanding during the three and nine months ended September 30, 2016. The following table sets forth the computation of the Company’s basic and diluted net income per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net income $ 34,888 $ 8,839 $ 67,083 $ 17,883 Less: preferred stock accretion — (1,097 ) (1,722 ) (3,257 ) Less: undistributed earnings attributable to participating securities — (6,094 ) (23,959 ) (11,582 ) Net income attributable to common stockholders - basic and diluted $ 34,888 $ 1,648 $ 41,402 $ 3,044 Denominator: Weighted-average shares used to compute net income per share attributable to common stockholders - basic 35,922 6,534 21,195 6,357 Dilutive effect of stock options, unvested restricted stock and restricted stock units, and employee stock purchase plan 4,786 1,888 3,988 1,789 Weighted-average shares used to compute net income per share attributable to common stockholders - diluted 40,708 8,422 25,183 8,146 Net income per share attributable to common stockholders Basic $ 0.97 0.25 $ 1.95 $ 0.48 Diluted $ 0.86 0.20 $ 1.64 $ 0.37 The following common stock equivalents (in thousands) were excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Options to purchase common stock 17 115 30 305 Unvested restricted stock units 21 — 16 — Preferred stock warrants — 245 245 245 Preferred stock — 24,177 — 24,177 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. COMMITMENTS AND CONTINGENCIES Leases The Company’s principal facilities are located in Maynard, Massachusetts and Hazlet, New Jersey and are leased by the Company under non-cancelable operating leases that expire in January 2019, with respect to the Massachusetts facility, and June 2018 and July 2018, with respect to various floors of the New Jersey facility. The Company also leases office space in various locations with expiration dates between 2018 and 2020. The lease agreements often include leasehold improvement incentives, escalating lease payments, renewal provisions and other provisions which require the Company to pay taxes, insurance, maintenance costs or defined rent increases. All of the Company’s facility leases are accounted for as operating leases. Rent expense is recorded over the lease terms on a straight-line basis. In March 2016, the Company entered into a lease to relocate the current Hazlet operations to Holmdel, New Jersey, which expires in 2021. In April 2016, the Company entered into a lease to move the Maynard operations to another section of the current facility which expires in 2024. Both of these leases have been classified as operating leases. Future minimum payments under the leases are included in the table below. Future minimum lease payments due under these non-cancelable lease agreements as of September 30, 2016, are as follows (in thousands): Amounts Remaining 2016 $ 372 2017 2,916 2018 3,311 2019 2,928 2020 2,927 Thereafter 9,868 Total $ 22,322 In addition to the lease payments, the Company has committed to approximately $5.0 million of tenant improvements related to the Maynard lease which are expected to be incurred during 2016. Warranties The Company’s standard warranty obligation to its customers provides for repair or replacement of a defective product at the Company’s discretion for a period of time following purchase, generally between 12 and 24 months. Factors that affect the warranty obligation include product failure rates, material usage, and service delivery costs incurred in correcting product failures. The estimated cost associated with fulfilling the Company’s warranty obligation to customers is recorded in cost of revenue. Changes in the Company’s product warranty liability, which is included as a component of accrued liabilities on the condensed consolidated balance sheets, are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Warranty reserve, beginning of period $ 1,306 $ 642 $ 763 $ 508 Provisions made to warranty reserve during the period 2,334 117 4,120 367 Charges against warranty reserve during the period (1,531 ) (44 ) (2,774 ) (160 ) Warranty reserve, end of period $ 2,109 $ 715 $ 2,109 $ 715 Legal Contingencies On January 22, 2016, ViaSat, Inc. filed a suit against the Company alleging, among other things, breach of contract, breach of the implied covenant of good faith and fair dealing and misappropriation of trade secrets. On February 19, 2016, the Company responded to ViaSat’s suit and alleged counterclaims against ViaSat including, among other things, patent misappropriation, breach of contract, breach of the implied covenant of good faith and fair dealing, misappropriation of trade secrets and unfair competition, which ViaSat denied in its response filed March 16, 2016. The lawsuit is still pending. The Company is continuing to evaluate ViaSat’s claims, but based on the information available to the Company today, the Company currently believes that this suit will not have a material adverse effect on the Company’s business or its consolidated financial position, results of operations or cash flows. In addition, from time to time the Company may become involved in legal proceedings or be subject to claims arising in the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on the Company’s business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Indemnification In the ordinary course of business, the Company enters into various agreements containing standard indemnification provisions. The Company’s indemnification obligations under such provisions are typically in effect from the date of execution of the applicable agreement through the end of the applicable statute of limitations. During the nine months ended September 30, 2016 and 2015, the Company had not experienced any losses related to these indemnification obligations. The Company does not expect significant claims related to these indemnification obligations, and consequently, concluded the fair value of these obligations is not material. Accordingly, as of September 30, 2016 and December 31, 2015, no amounts have been accrued related to such indemnification provisions. Royalty Obligations The Company incorporates technology into its products that is licensed from third parties. The Company has not committed to any future minimum obligations under the terms of the technology licensing agreements. The Company is required to pay royalties to the licensors of $15 to $17 per unit sold within the Company’s new 400 Gbps product family and for its newest product within the 100 Gbps product family. In addition, the Company pays royalties of $150 per unit sold for its older products within the 100 Gbps product family. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are reinvested indefinitely. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter. The Company’s quarterly tax provision, and its quarterly estimate of its annual effective tax rate, are subject to significant volatility due to several factors, including the Company’s ability to accurately predict its pre-tax income and loss in multiple jurisdictions, as well as the portions of stock-based compensation that will either not generate tax benefits or the tax benefit is unpredictable and reflected when realized by employees. For the three months ended September 30, 2016 and 2015, the Company recorded a provision for income taxes of $2.1 million and $3.4 million, respectively, resulting in an effective tax rate of 5.7% and 27.5%, respectively. For the nine months ended September 30, 2016 and 2015, the Company recorded a provision for income taxes of $5.9 million and $8.1 million, respectively, resulting in an effective tax rate of 8.1% and 31.3%, respectively. During the current year periods, the effective tax rate is lower than the statutory federal tax rate due to the favorable effect of foreign statutory tax rates applicable to income earned outside the United States under our corporate structure. The Company has been selected for examination by the Internal Revenue Service ("IRS") for its 2013 tax year. It is difficult to estimate when the examination will be settled or the final outcome. However, the Company anticipates the examination will be settled before the end of 2016 and does not anticipate a significant impact to its gross unrecognized tax benefits related to the audit. As of September 30, 2016, the Company had gross tax-effected unrecognized tax benefits of $2.1 million which, if recognized, would favorably impact the effective tax rate. The Company’s existing tax positions will continue to generate an increase in unrecognized tax benefits in subsequent periods. The Company’s policy is to record interest and penalties related to unrecognized tax benefits as income tax expense. During the three and nine months ended September 30, 2016 and 2015, the amounts recorded related to the accrual of interest and penalties were immaterial in each period. |
Segment and Geographic Informat
Segment and Geographic Information Data | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | 13. SEGMENT INFORMATION AND GEOGRAPHIC DATA The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker (“CODM”), which is the Company’s president and chief executive officer, in deciding how to allocate resources and assess performance. The Company’s CODM evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the condensed consolidated financial statements. Revenue by geographic region, based on ship-to destinations, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 United States $ 25,644 $ 13,405 $ 65,660 $ 31,385 China 55,665 15,009 143,017 50,004 Germany 37,333 24,339 82,054 64,500 Other 16,662 12,666 45,254 24,620 Total revenue $ 135,304 $ 65,419 $ 335,985 $ 170,509 Total long-lived assets by geographic region consisted of the following (in thousands): September 30, 2016 December 31, 2015 United States $ 10,797 $ 10,896 Canada 2,076 3,227 Thailand 7,238 1,715 Other 1,008 87 Total long-lived assets $ 21,119 $ 15,925 |
Concentrations of Risk
Concentrations of Risk | 9 Months Ended |
Sep. 30, 2016 | |
Risks And Uncertainties [Abstract] | |
Concentrations of Risk | 14. CONCENTRATIONS OF RISK Customer Concentration Customers with revenue equal to or greater than 10% of total revenue for the three and nine months ended September 30, 2016 and 2015 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 A 28 % 16 % 34 % 24 % B 35 % 28 % 28 % 28 % C * 13 % * 12 % * Customer A is currently subject to U.S. Department of Commerce restrictions that could prevent sales to this customer after November 28, 2016. Customers that accounted for equal to or greater than 10% of accounts receivable at September 30, 2016 and 2015 were as follows: September 30, 2016 December 31, 2015 A 32 % 21 % B 31 % * C * 24 % D * 10 % * Less than 10% of accounts receivable at the date indicated Supplier Concentration The Company purchases a substantial portion of its inventory from contract manufacturers located in the Canada, Thailand and the United States. For the three and nine months ended September 30, 2016 and 2015, total inventory purchased from each of the contract manufacturers was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 X 42 % 56 % 43 % 46 % Y 27 % — 20 % — Z 18 % 24 % 19 % 36 % The Company also outsources certain engineering projects to foundries located in the United States and Japan. During the three and nine months ended September 30, 2016, the Company incurred 16% and 17%, respectively, of its total research and development costs with the vendor located in the United States. During the three months ended September 30, 2015, the Company incurred 11% of its total research and development costs with the vendor located in the United States. Costs incurred with the vendor in Japan were less than 10% of total research and development expense during the three and nine months ended September 30, 2016. Costs incurred with the vendor in the United States were less than 10% of total research and development expense during the nine months ended September 30, 2015. Costs incurred with the vendor located in Japan represented 11% and 16%, of the Company’s total research and development costs during the three and nine months ended September 30, 2015, respectively. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Parties | 15. RELATED PARTIES On June 1, 2016, Vincent Roche, President and Chief Executive Officer and a member of the board of directors of Analog Devices, Inc. (“ADI”) was elected to the Company’s board of directors. The Company, through its contract manufacturers, periodically purchases supplies from ADI pursuant to purchase orders negotiated on an arm’s length basis between ADI and the Company’s contract manufacturers at prevailing prices. These purchased supplies are used as content in certain of our manufactured products. The Company’s contract manufacturers made purchases from ADI of approximately $1.5 million and $492,000, during the three months ended September 30, 2016 and 2015, respectively, and $3.3 million and $1.1 million, during the nine months ended September 30, 2016 and 2015, respectively. The Company periodically purchases products from M/A-COM Technology Solutions, Inc. (“M/A-COM”). One of the members of the Company’s board of directors, Peter Y. Chung, is also a member of the board of directors of M/A-COM. During the three and nine months ended September 30, 2015, the Company made purchases of $763,000 and $914,000 from M/A-COM, respectively. Purchases from M/A-COM during the three and nine months ended September 30, 2016 were immaterial. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. SUBSEQUENT EVENTS On October 13, 2016, the Company closed a follow-on offering in which the Company issued and sold 1,210,302 shares of common stock and certain selling stockholders sold an additional 3,289,698 shares. The underwriters were granted a 30-day option to purchase up to an additional 675,000 shares from certain of the selling stockholders. The price per share to the public was $100.00. The Company received aggregate proceeds of $116.8 million from the follow-on offering, net of underwriters’ discounts and commissions, before deduction of offering expenses of approximately $1.1 million. The Company received no proceeds from the sale of shares by the selling stockholders. |
Basis of Presentation and Sum26
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Financial Instruments | Financial Instruments Cash equivalents include all highly liquid investments with an original maturity of three months or less. Cash equivalents consist of bank deposit accounts, money market funds, repurchase agreements and commercial paper. The Company’s marketable debt securities have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the classifications at each balance sheet date. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. The Company’s marketable debt securities are carried at fair value, with unrealized gains and losses, net of taxes, reported as a component of accumulated other comprehensive income in stockholders’ equity, with the exception of unrealized losses believed to be other-than-temporary which are reported in earnings in the current period. |
Restricted Cash | Restricted Cash The Company has a restricted cash balance at September 30, 2016 of $2.2 million. The restricted cash balance constitutes funds held in escrow to fund future tenant improvements related to the Company’s Maynard, Massachusetts facility. Under the terms of the lease agreement, the Company will not have title to the tenant improvements. As the escrow funds are spent, the Company will record a prepaid asset which will be amortized over the lease term. Accordingly, the Company classifies changes in restricted cash as operating activities within our condensed consolidated statements of cash flows. |
Recent Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The amendments in ASU 2016-15, required to be updated for all annual periods and interim reporting periods beginning after December 15, 2017, were adopted early by the Company in the third quarter of 2016 and were applied to its related unaudited condensed consolidated financial statements on a retrospective basis. The adoption of these amendments had an immaterial impact on the statement of cash flows through September 30, 2016 as the cash flow issues covered by ASU 2016-15 either did not apply to the Company, or the Company’s presentation and classification of the cash flow issue was already prepared in accordance with the guidance prescribed by ASU 2016-15. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period Compensation—Stock Compensation |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Cash, Cash Equivalents and Marketable Securities | The following table sets forth the Company’s cash, cash equivalents and marketable securities as of September 30, 2016 (in thousands): Amortized Gross Unrealized Estimated Cash and Marketable Cost Gains Losses Fair Value Cash equivalents Securities Cash $ 45,160 $ — $ — $ 45,160 $ 45,160 $ — Money market funds 45,754 — — 45,754 45,754 — Repurchase agreements 29,000 — — 29,000 29,000 — U.S. treasury bonds 5,011 — (1 ) 5,010 — 5,010 Commercial paper 20,278 — — 20,278 3,000 17,278 Corporate debt securities 30,375 — (22 ) 30,353 — 30,353 Total $ 175,578 $ — $ (23 ) $ 175,555 $ 122,914 $ 52,641 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following (in thousands): September 30, 2016 December 31, 2015 Raw materials $ 14,910 $ 16,023 Work-in-process 4,476 2,155 Finished goods 9,808 9,742 Inventory $ 29,194 $ 27,920 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following (in thousands): September 30, 2016 December 31, 2015 Engineering laboratory equipment $ 29,676 $ 17,757 Computer software 2,818 2,398 Computer equipment 2,668 1,640 Furniture and fixtures 408 370 Leasehold improvements 1,026 1,017 Equipment under capital lease — 96 Construction in progress 2,364 3,952 Total property and equipment 38,960 27,230 Less: Accumulated depreciation (17,841 ) (11,305 ) Property and equipment, net $ 21,119 $ 15,925 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): September 30, 2016 December 31, 2015 Employee-related liabilities $ 6,152 $ 3,822 Outsourced foundry services 170 4,113 Goods and services received not invoiced 4,651 1,974 Accrued income taxes 9,136 1,019 Accrued manufacturing expenses 3,707 299 Other accrued liabilities 7,670 4,294 Total accrued liabilities $ 31,486 $ 15,521 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets And Liabilities Measured at Fair Value on Recurring Basis | The fair value of these assets and liabilities measured on a recurring basis was determined using the following inputs as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total Fair (Level 1) (Level 2) (Level 3) Value Assets: Money market funds $ — $ 45,754 $ — $ 45,754 Repurchase agreements — 29,000 — 29,000 U.S. treasury bonds — 5,010 — 5,010 Commercial paper — 20,278 — 20,278 Corporate debt securities — 30,353 — 30,353 Total $ — $ 130,395 $ — $ 130,395 December 31, 2015 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total Fair (Level 1) (Level 2) (Level 3) Value Assets: Money market fund $ — $ 21,524 $ — $ 21,524 Liabilities: Preferred stock warrant liability $ — $ — $ 3,254 $ 3,254 |
Redeemable Convertible Prefer32
Redeemable Convertible Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Preferred Stock Outstanding | Preferred stock outstanding as of December 31, 2015 consisted of the following (in thousands): December 31, 2015 Net Shares Shares Carrying Liquidation Authorized Outstanding Value Preference Series A preferred stock 6,009 6,009 $ 8,900 $ 6,009 Series B preferred stock 10,764 10,554 21,741 15,100 Series C preferred stock 3,901 3,866 13,462 10,317 Series D preferred stock 3,834 3,748 26,677 22,000 Total 24,508 24,177 $ 70,780 $ 53,426 |
Summary of Assumptions Used in Determining the Fair Value of Preferred Stock Warrants | The assumptions used in determining the fair values of preferred stock warrants as of May 18, 2016, which was the closing date of the IPO and the date when the Company performed the final remeasurement of the preferred stock warrants, and December 31, 2015 were as follows: May 18, 2016 December 31, 2015 Risk-free interest rate 1.2% - 1.4% 1.8% - 2.1% Expected dividend yield None None Expected volatility 57.7% - 59.6% 58.7% - Expected term (in years) 4.8 - 6.2 5.2 - 6.6 Fair value of Series B preferred stock $ 28.45 $ 14.59 Fair value of Series C preferred stock $ 28.45 $ 14.65 |
Summary of Changes in the Preferred Stock Warrant Liability Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | A summary of the changes in the Company’s preferred stock warrant liability measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2016 and 2015 is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Preferred stock warrant liability at beginning of period $ — $ 2,543 $ 3,254 $ 1,100 Change in fair value — 370 3,361 1,813 Reclassification of preferred stock warrant liability to additional paid-in capital upon conversion to common stock warrants — — (6,615 ) — Preferred stock warrant liability at end of period $ — $ 2,913 $ — $ 2,913 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Classification of Stock-based Compensation | The following table summarizes the classification of stock-based compensation in the condensed consolidated income statements for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of revenue $ 504 $ 24 $ 1,196 $ 42 Research and development 3,782 160 9,360 378 Sales, general and administrative 2,389 47 5,580 125 Total stock-based compensation $ 6,675 $ 231 $ 16,136 $ 545 |
Schedule of Stock-Based Compensation Expense by Award Type | The following table summarizes stock-based compensation expense by award type for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Stock options $ 623 $ 202 $ 1,391 $ 452 Restricted stock awards 29 29 76 93 Restricted stock units 5,740 — 14,235 — Employee stock purchase plan 283 — 434 — Total stock-based compensation $ 6,675 $ 231 $ 16,136 $ 545 |
Weighted-Average Assumptions Used to Estimate Fair Value | The estimated grant-date fair value of the Company’s stock option awards issued to employees was calculated using the Black-Scholes option-pricing model, based on the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Risk-free interest rate 1.2% - 1.3% 1.9% 1.2% - 1.6% 1.7% - 1.9% Expected dividend yield None None None None Expected volatility 59.5% - 60.0% 61.4% 59.5% - 60.0% 61.4% - 70.9% Expected term (in years) 6.3 6.3 6.3 6.3 - 6.5 |
Stock Option Activities | A summary of stock option activity under the Company’s equity incentive plans for the nine months ended September 30, 2016 is as follows: Number of Options (in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2015 2,472 $ 2.85 7.7 $ 28,844 Granted 517 $ 19.39 Exercised (243 ) $ 1.46 $ 7,327 Cancelled (15 ) $ 4.48 Outstanding at September 30, 2016 2,731 $ 6.10 7.5 $ 265,376 Vested and expected to vest at: September 30, 2016 2,731 $ 6.10 7.5 $ 265,376 December 31, 2015 2,394 $ 2.81 7.7 $ 28,031 Exercisable at: September 30, 2016 1,197 $ 1.67 6.4 $ 121,656 December 31, 2015 919 $ 0.82 6.6 $ 12,590 |
Summary of Changes in Company's Restricted Stock Awards | A summary of the changes in the Company’s restricted stock awards during the nine months ended September 30, 2016 is as follows: Restricted Shares (in thousands) Weighted-Average Grant Date Fair Value Outstanding at December 31, 2015 192 $ 1.39 Vested (64 ) $ 1.39 Outstanding at September 30, 2016 128 $ 1.39 |
Summary of Changes in Company's RSU | A summary of the changes in the Company’s RSUs during the nine months ended September 30, 2016 is as follows: Restricted Shares (in thousands) Weighted-Average Grant Date Fair Value Outstanding at December 31, 2015 1,064 $ 12.16 RSUs granted during 2015 which were contingent upon IPO 450 $ 13.65 RSUs granted during 2016 980 $ 27.00 Outstanding at September 30, 2016 2,494 $ 18.26 |
Restricted Stock Units | |
Weighted-Average Assumptions Used to Estimate Fair Value | For the market-based RSUs, the Company estimated the fair value using a Monte Carlo valuation model on the date of grant, using the following weighted-average assumptions: Risk-free interest rate 1.1% Expected dividend yield None Expected volatility 58.9% Expected term (in years) 1.4 Grant date fair value of underlying shares $ 22.00 |
Net Income Per Share Attribut34
Net Income Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share Attributable to Common Stockholders | The following table sets forth the computation of the Company’s basic and diluted net income per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net income $ 34,888 $ 8,839 $ 67,083 $ 17,883 Less: preferred stock accretion — (1,097 ) (1,722 ) (3,257 ) Less: undistributed earnings attributable to participating securities — (6,094 ) (23,959 ) (11,582 ) Net income attributable to common stockholders - basic and diluted $ 34,888 $ 1,648 $ 41,402 $ 3,044 Denominator: Weighted-average shares used to compute net income per share attributable to common stockholders - basic 35,922 6,534 21,195 6,357 Dilutive effect of stock options, unvested restricted stock and restricted stock units, and employee stock purchase plan 4,786 1,888 3,988 1,789 Weighted-average shares used to compute net income per share attributable to common stockholders - diluted 40,708 8,422 25,183 8,146 Net income per share attributable to common stockholders Basic $ 0.97 0.25 $ 1.95 $ 0.48 Diluted $ 0.86 0.20 $ 1.64 $ 0.37 |
Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Income Per Share | The following common stock equivalents (in thousands) were excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Options to purchase common stock 17 115 30 305 Unvested restricted stock units 21 — 16 — Preferred stock warrants — 245 245 245 Preferred stock — 24,177 — 24,177 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Annual Minimum Lease Payments | Future minimum lease payments due under these non-cancelable lease agreements as of September 30, 2016, are as follows (in thousands): Amounts Remaining 2016 $ 372 2017 2,916 2018 3,311 2019 2,928 2020 2,927 Thereafter 9,868 Total $ 22,322 |
Schedule of Changes in Product Warrant Liability | The estimated cost associated with fulfilling the Company’s warranty obligation to customers is recorded in cost of revenue. Changes in the Company’s product warranty liability, which is included as a component of accrued liabilities on the condensed consolidated balance sheets, are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Warranty reserve, beginning of period $ 1,306 $ 642 $ 763 $ 508 Provisions made to warranty reserve during the period 2,334 117 4,120 367 Charges against warranty reserve during the period (1,531 ) (44 ) (2,774 ) (160 ) Warranty reserve, end of period $ 2,109 $ 715 $ 2,109 $ 715 |
Segment and Geographic Inform36
Segment and Geographic Information Data (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | Revenue by geographic region, based on ship-to destinations, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 United States $ 25,644 $ 13,405 $ 65,660 $ 31,385 China 55,665 15,009 143,017 50,004 Germany 37,333 24,339 82,054 64,500 Other 16,662 12,666 45,254 24,620 Total revenue $ 135,304 $ 65,419 $ 335,985 $ 170,509 |
Summary of Total Long-Lived Assets by Geographic Region | Total long-lived assets by geographic region consisted of the following (in thousands): September 30, 2016 December 31, 2015 United States $ 10,797 $ 10,896 Canada 2,076 3,227 Thailand 7,238 1,715 Other 1,008 87 Total long-lived assets $ 21,119 $ 15,925 |
Concentrations of Risk (Tables)
Concentrations of Risk (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Summary of Concentrations of Risk | Customer Concentration Customers with revenue equal to or greater than 10% of total revenue for the three and nine months ended September 30, 2016 and 2015 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 A 28 % 16 % 34 % 24 % B 35 % 28 % 28 % 28 % C * 13 % * 12 % * Customers that accounted for equal to or greater than 10% of accounts receivable at September 30, 2016 and 2015 were as follows: September 30, 2016 December 31, 2015 A 32 % 21 % B 31 % * C * 24 % D * 10 % * Less than 10% of accounts receivable at the date indicated |
Supplier Concentration Risk | |
Concentration Risk [Line Items] | |
Summary of Concentrations of Risk | Supplier Concentration The Company purchases a substantial portion of its inventory from contract manufacturers located in the Canada, Thailand and the United States. For the three and nine months ended September 30, 2016 and 2015, total inventory purchased from each of the contract manufacturers was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 X 42 % 56 % 43 % 46 % Y 27 % — 20 % — Z 18 % 24 % 19 % 36 % |
Nature of the Business and Op38
Nature of the Business and Operations - Additional Information (Details) | Oct. 13, 2016USD ($)$ / sharesshares | May 18, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)GB | Sep. 30, 2015USD ($) |
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Entity incorporation date | Jun. 2, 2009 | |||||
Optical interconnect modules transmission speed, description | Company’s products include a series of low-power coherent digital signal processors and silicon photonic integrated circuits integrated into families of optical interconnect modules with transmission speeds ranging from 100 to 400 gigabits per second for use in long-haul, metro and inter-data center markets. | |||||
Aggregate proceeds from IPO | $ 97,757,000 | |||||
Change in fair value of preferred stock warrant liability | $ 370,000 | $ 3,361,000 | $ 1,813,000 | |||
Performance Awards | ||||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Performance awards vesting period | 4 years | |||||
IPO | ||||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Shares issued and sold | shares | 4,570,184 | |||||
Additional shares sold by selling stockholders | shares | 604,816 | |||||
Sale of stock, price per share | $ / shares | $ 23 | |||||
Aggregate proceeds from IPO | $ 97,800,000 | |||||
Offering expenses | 4,200,000 | |||||
Proceeds from sale of shares | $ 0 | |||||
Conversion of redeemable preferred stock into common stock | shares | 24,177,495 | |||||
Follow-on offering | Subsequent Event | ||||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Shares issued and sold | shares | 1,210,302 | |||||
Additional shares sold by selling stockholders | shares | 3,289,698 | |||||
Sale of stock, price per share | $ / shares | $ 100 | |||||
Offering expenses | $ 1,100,000 | |||||
Proceeds from sale of shares | 0 | |||||
Aggregate proceeds from follow-on offering | $ 116,800,000 | |||||
Underwriters | Subsequent Event | ||||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Underwriters granted period | 30 days | |||||
Redeemable Convertible Preferred Stock Warrants | IPO | ||||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Change in fair value of preferred stock warrant liability | $ 3,600,000 | |||||
Preferred stock warrant liability reclassified to additional-paid in capital | $ 6,600,000 | |||||
Minimum | ||||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Optical interconnect modules transmission speed | GB | 100 | |||||
Maximum | ||||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Optical interconnect modules transmission speed | GB | 400 | |||||
Maximum | Underwriters | Subsequent Event | ||||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Additional shares sold by selling stockholders | shares | 675,000 |
Basis of Presentation and Sum39
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Accounting Policies [Abstract] | |
Restricted cash | $ 2,181 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||||
Amortized Cost | $ 175,578 | |||
Gross Unrealized Losses | (23) | |||
Estimated Fair Value | 175,555 | |||
Cash and Cash equivalents | 122,914 | $ 27,610 | $ 18,037 | $ 21,128 |
Marketable Securities | 52,641 | |||
Cash | ||||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||||
Amortized Cost | 45,160 | |||
Estimated Fair Value | 45,160 | |||
Cash and Cash equivalents | 45,160 | |||
Money Market Funds | ||||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||||
Amortized Cost | 45,754 | |||
Estimated Fair Value | 45,754 | |||
Cash and Cash equivalents | 45,754 | |||
Repurchase Agreements | ||||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||||
Amortized Cost | 29,000 | |||
Estimated Fair Value | 29,000 | |||
Cash and Cash equivalents | 29,000 | |||
U.S. Treasury Bonds | ||||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||||
Amortized Cost | 5,011 | |||
Gross Unrealized Losses | (1) | |||
Estimated Fair Value | 5,010 | |||
Marketable Securities | 5,010 | |||
Commercial Paper | ||||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||||
Amortized Cost | 20,278 | |||
Estimated Fair Value | 20,278 | |||
Cash and Cash equivalents | 3,000 | |||
Marketable Securities | 17,278 | |||
Corporate debt securities | ||||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||||
Amortized Cost | 30,375 | |||
Gross Unrealized Losses | (22) | |||
Estimated Fair Value | 30,353 | |||
Marketable Securities | $ 30,353 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |||
Sale or maturity of marketable securities | $ 0 | $ 0 | |
Investments in marketable securities | $ 0 |
Inventory- Schedule of Inventor
Inventory- Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 14,910 | $ 16,023 |
Work-in-process | 4,476 | 2,155 |
Finished goods | 9,808 | 9,742 |
Inventory | $ 29,194 | $ 27,920 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 38,960 | $ 27,230 |
Less: Accumulated depreciation | (17,841) | (11,305) |
Property and equipment, net | 21,119 | 15,925 |
Engineering laboratory equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 29,676 | 17,757 |
Computer software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 2,818 | 2,398 |
Computer equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 2,668 | 1,640 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 408 | 370 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,026 | 1,017 |
Equipment under capital lease | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 96 | |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 2,364 | $ 3,952 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation | $ 2,700 | $ 1,200 | $ 6,536 | $ 3,164 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Employee-related liabilities | $ 6,152 | $ 3,822 |
Outsourced foundry services | 170 | 4,113 |
Goods and services received not invoiced | 4,651 | 1,974 |
Accrued income taxes | 9,136 | 1,019 |
Accrued manufacturing expenses | 3,707 | 299 |
Other accrued liabilities | 7,670 | 4,294 |
Total accrued liabilities | $ 31,486 | $ 15,521 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Assets And Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | $ 130,395 | |
Preferred stock warrant liability | $ 3,254 | |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 45,754 | 21,524 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 130,395 | |
Significant Other Observable Inputs (Level 2) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 45,754 | 21,524 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Preferred stock warrant liability | $ 3,254 | |
Repurchase Agreements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 29,000 | |
Repurchase Agreements | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 29,000 | |
U.S. Treasury Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 5,010 | |
U.S. Treasury Bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 5,010 | |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 20,278 | |
Commercial Paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 20,278 | |
Corporate debt securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 30,353 | |
Corporate debt securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | $ 30,353 |
Redeemable Convertible Prefer47
Redeemable Convertible Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | May 18, 2016 | |
Temporary Equity [Line Items] | |||||
Accretion to redemption value | $ (1,628) | $ (3,197) | |||
Change in fair value of preferred stock warrant liability | $ 370 | $ 3,361 | 1,813 | ||
Preferred stock, shares authorized | 5,000,000 | ||||
Preferred stock, par value | $ 0.0001 | ||||
Preferred stock, shares issued | 0 | ||||
Preferred stock, shares outstanding | 0 | ||||
Redeemable Convertible Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Convertible preferred stock conversion basis | One-for-one | ||||
Aggregate shares converted to common stock | 24,177,495 | ||||
Accretion to redemption value | $ 1,628 | $ 3,197 | |||
Reclassification of temporary equity to additional paid-in capital | 72,500,000 | ||||
Preferred Stock Warrants | |||||
Temporary Equity [Line Items] | |||||
Change in fair value of preferred stock warrant liability | $ 3,600 | ||||
Preferred stock warrant liability reclassified to additional-paid in capital | $ 6,600 |
Redeemable Convertible Prefer48
Redeemable Convertible Preferred Stock - Schedule of Preferred Stock Outstanding (Details) $ in Thousands | Dec. 31, 2015USD ($)shares |
Temporary Equity [Line Items] | |
Shares Authorized | shares | 24,508,000 |
Shares Outstanding | shares | 24,177,000 |
Net Carrying Value | $ | $ 70,780 |
Liquidation Preference | $ | $ 53,426 |
Series A preferred stock | |
Temporary Equity [Line Items] | |
Shares Authorized | shares | 6,009,000 |
Shares Outstanding | shares | 6,009,000 |
Net Carrying Value | $ | $ 8,900 |
Liquidation Preference | $ | $ 6,009 |
Series B Preferred Stock | |
Temporary Equity [Line Items] | |
Shares Authorized | shares | 10,764,000 |
Shares Outstanding | shares | 10,554,000 |
Net Carrying Value | $ | $ 21,741 |
Liquidation Preference | $ | $ 15,100 |
Series C Preferred Stock | |
Temporary Equity [Line Items] | |
Shares Authorized | shares | 3,901,000 |
Shares Outstanding | shares | 3,866,000 |
Net Carrying Value | $ | $ 13,462 |
Liquidation Preference | $ | $ 10,317 |
Series D preferred stock | |
Temporary Equity [Line Items] | |
Shares Authorized | shares | 3,834,000 |
Shares Outstanding | shares | 3,748,000 |
Net Carrying Value | $ | $ 26,677 |
Liquidation Preference | $ | $ 22,000 |
Redeemable Convertible Prefer49
Redeemable Convertible Preferred Stock - Summary of Assumptions Used in Determining the Fair Value of Preferred Stock Warrants (Details) - $ / shares | May 18, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Risk-free interest rate | 1.20% | 1.80% |
Expected volatility | 57.70% | 58.70% |
Expected term (in years) | 4 years 9 months 18 days | 5 years 2 months 12 days |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Risk-free interest rate | 1.40% | 2.10% |
Expected volatility | 59.60% | 60.40% |
Expected term (in years) | 6 years 2 months 12 days | 6 years 7 months 6 days |
Series B Preferred Stock | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of Series B preferred stock | $ 28.45 | $ 14.59 |
Series C Preferred Stock | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of Series B preferred stock | $ 28.45 | $ 14.65 |
Redeemable Convertible Prefer50
Redeemable Convertible Preferred Stock - Summary of Changes in the Preferred Stock Warrant Liability Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Temporary Equity Disclosure [Abstract] | |||
Preferred stock warrant liability at beginning of period | $ 2,543 | $ 3,254 | $ 1,100 |
Change in fair value | 370 | 3,361 | 1,813 |
Reclassification of preferred stock warrant liability to additional paid-in capital upon conversion to common stock warrants | $ (6,615) | ||
Preferred stock warrant liability at end of period | $ 2,913 | $ 2,913 |
Stock Compensation Plans - Clas
Stock Compensation Plans - Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 6,675 | $ 231 | $ 16,136 | $ 545 |
Cost of revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 504 | 24 | 1,196 | 42 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 3,782 | 160 | 9,360 | 378 |
Sales, general and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 2,389 | $ 47 | $ 5,580 | $ 125 |
Stock Compensation Plans - Sche
Stock Compensation Plans - Schedule of Stock-Based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 6,675 | $ 231 | $ 16,136 | $ 545 |
Stock options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 623 | 202 | 1,391 | 452 |
Restricted stock awards | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 29 | $ 29 | 76 | $ 93 |
Restricted stock units | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 5,740 | 14,235 | ||
Employee stock purchase plan | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 283 | $ 434 |
Stock Compensation Plans - Weig
Stock Compensation Plans - Weighted-Average Assumptions Used to Estimate Fair Value (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.90% | |||
Risk-free interest rate, minimum | 1.20% | 1.20% | 1.70% | |
Risk-free interest rate, maximum | 1.30% | 1.60% | 1.90% | |
Expected volatility | 61.40% | |||
Expected volatility, minimum | 59.50% | 59.50% | 61.40% | |
Expected volatility, maximum | 60.00% | 60.00% | 70.90% | |
Expected term (in years) | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 3 months 18 days | |
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.10% | |||
Expected volatility | 58.90% | |||
Expected term (in years) | 1 year 4 months 24 days | |||
Grant date fair value of underlying shares | $ 22 | $ 22 | ||
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 3 months 18 days | |||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 6 months |
Stock Compensation Plans - Stoc
Stock Compensation Plans - Stock Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Number of Options, Abstract | ||
Number of Options, Outstanding at beginning of period | 2,472 | |
Number of Options, Granted | 517 | |
Number of Options, Exercised | (243) | |
Number of Options, Cancelled | (15) | |
Number of Options, Outstanding at end of period | 2,731 | 2,472 |
Number of Options, Vested and expected to vest | 2,731 | 2,394 |
Number of Options, Exercisable | 1,197 | 919 |
Weighted Average Exercise Price, Abstract | ||
Weighted-Average Exercise Price Outstanding at beginning of period | $ 2.85 | |
Weighted-Average Exercise Price, Granted | 19.39 | |
Weighted-Average Exercise Price, Exercised | 1.46 | |
Weighted-Average Exercise Price, Cancelled | 4.48 | |
Weighted-Average Exercise Price Outstanding at end of period | 6.10 | $ 2.85 |
Weighted-Average Exercise Price, Vested and expected to vest | 6.10 | 2.81 |
Weighted-Average Exercise Price, Exercisable | $ 1.67 | $ 0.82 |
Weighted-Average Remaining Contract Term, Abstract | ||
Weighted-Average Remaining Contractual Term, Outstanding | 7 years 6 months | 7 years 8 months 12 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 7 years 6 months | 7 years 8 months 12 days |
Weighted-Average Remaining Contractual Term, Exercisable | 6 years 4 months 24 days | 6 years 7 months 6 days |
Aggregate Intrinsic Value, Abstract | ||
Aggregate Intrinsic Value Outstanding at beginning of period | $ 28,844 | |
Aggregate Intrinsic Value, Exercised | 7,327 | |
Aggregate Intrinsic Value, Outstanding at end of period | 265,376 | $ 28,844 |
Aggregate Intrinsic Value, Vested and expected to vest | 265,376 | 28,031 |
Aggregate Intrinsic Value, Exercisable | $ 121,656 | $ 12,590 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Details) - USD ($) | May 18, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Recognized stock-based compensation expense | $ 6,675,000 | $ 231,000 | $ 16,136,000 | $ 545,000 | ||
2016 ESPP | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Aggregate common stock available under employee stock purchase plans | 700,000 | |||||
Annual shares increase for future issuance by percentage under employee stock purchase plans | 1.00% | |||||
Percentage of salary contribution by employees | 15.00% | 15.00% | ||||
Discount on fair value for purchase of shares, percentage | 85.00% | |||||
2016 ESPP | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Annual increase in ordinary shares for available for future issuance | 900,000 | 900,000 | ||||
Stock options | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost, stock options | $ 7,700,000 | $ 7,700,000 | $ 3,300,000 | |||
Weighted average recognition period | 3 years 3 months 18 days | 3 years 4 months 24 days | ||||
Weighted average grant date fair value | $ 34.82 | $ 5.91 | $ 10.97 | $ 3.65 | ||
Recognized stock-based compensation expense | $ 623,000 | $ 202,000 | $ 1,391,000 | $ 452,000 | ||
Restricted Stock Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted average recognition period | 3 years 6 months | |||||
Restricted stock units granted | 980,000 | |||||
Recognized stock-based compensation expense | 5,740,000 | $ 14,235,000 | ||||
Unrecognized stock-based compensation expense | $ 31,300,000 | $ 31,300,000 | ||||
Restricted Stock Units | Employees and Executives | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock units granted | 780,000 | |||||
Restricted Stock Units | Executive | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock units granted | 200,000 | |||||
Award vesting rights | These market-based RSUs vest upon achievement of specific stock price targets, provided that if the price targets are not achieved on or prior to May 18, 2020, then such grant shall automatically terminate | |||||
Restricted Stock Units | Executive | First Market Condition | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Recognized stock-based compensation expense | $ 800,000 | |||||
Restricted Stock Units | Executive | Second Market Condition | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Recognized stock-based compensation expense | $ 2,300,000 | |||||
Restricted Stock Units | 2009 Stock Plan | IPO | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Recognized stock-based compensation expense | $ 4,900,000 | |||||
Restricted Stock Units | 2009 Stock Plan | Employees, Directors And Executives | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock units granted | 1,300,000 |
Stock Compensation Plans - Chan
Stock Compensation Plans - Changes in Company Restricted Stock Awards (Details) - Restricted Stock Awards shares in Thousands | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Outstanding, beginning balance | shares | 192 |
Shares, Vested | shares | (64) |
Shares, Outstanding, ending balance | shares | 128 |
Weighted-Average Grant-Date Fair Value, Outstanding, beginning balance | $ / shares | $ 1.39 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 1.39 |
Weighted-Average Grant-Date Fair Value, Outstanding, ending balance | $ / shares | $ 1.39 |
Stock Compensation Plans - Ch57
Stock Compensation Plans - Changes in Company Restricted Stock Units (Details) - Restricted Stock Units shares in Thousands | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Outstanding, beginning balance | shares | 1,064 |
Shares, Granted During 2015 | shares | 450 |
Shares, Granted During 2016 | shares | 980 |
Shares, Outstanding, ending balance | shares | 2,494 |
Weighted-Average Grant-Date Fair Value, Outstanding, beginning balance | $ / shares | $ 12.16 |
Weighted Average Grant Date Fair Value, Granted During 2015 | $ / shares | 13.65 |
Weighted Average Grant Date Fair Value, Granted During 2016 | $ / shares | 27 |
Weighted-Average Grant-Date Fair Value, Outstanding, ending balance | $ / shares | $ 18.26 |
Net Income Per Share Attribut58
Net Income Per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income | $ 34,888 | $ 8,839 | $ 67,083 | $ 17,883 |
Accretion of redeemable convertible preferred stock | 0 | (1,097) | (1,722) | (3,257) |
Undistributed earnings attributable to participating securities | 0 | (6,094) | (23,959) | (11,582) |
Net income attributable to common stockholders - basic and diluted | $ 34,888 | $ 1,648 | $ 41,402 | $ 3,044 |
Weighted-average shares used to compute net income per share attributable to common stockholders: | ||||
Weighted-average shares used to compute net income per share attributable to common stockholders - basic | 35,922 | 6,534 | 21,195 | 6,357 |
Dilutive effect of stock options, unvested restricted stock and restricted stock units, and employee stock purchase plan | 4,786 | 1,888 | 3,988 | 1,789 |
Weighted-average shares used to compute net income per share attributable to common stockholders - diluted | 40,708 | 8,422 | 25,183 | 8,146 |
Net income per share attributable to common stockholders | ||||
Basic | $ 0.97 | $ 0.25 | $ 1.95 | $ 0.48 |
Diluted | $ 0.86 | $ 0.20 | $ 1.64 | $ 0.37 |
Net Income Per Share Attribut59
Net Income Per Share Attributable to Common Stockholders - Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 0 | 24,177 | 0 | 24,177 |
Options to purchase common stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 17 | 115 | 30 | 305 |
Restricted stock units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 21 | 0 | 16 | 0 |
Preferred Stock Warrants | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 0 | 245 | 245 | 245 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)$ / Unit | Sep. 30, 2015USD ($) | |
Loss Contingencies [Line Items] | ||||||
Operating leases rent expense | $ | $ 318,000 | $ 233,000 | $ 870,000 | $ 652,000 | ||
Older 100 Gbps Product Family | ||||||
Loss Contingencies [Line Items] | ||||||
Royalties payable to licensor | 150 | |||||
Lease to relocate Hazlet operations to Holmdel, New Jersey | ||||||
Loss Contingencies [Line Items] | ||||||
Lease expiration year | 2,021 | |||||
Lease to move Maynard operations to another section of the current facility | ||||||
Loss Contingencies [Line Items] | ||||||
Lease expiration year | 2,024 | |||||
Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Lease expiration year | 2,018 | |||||
Standard warranty period on repair or replacement of defective products | 12 months | |||||
Minimum | New 400 Gbps and 100 Gbps Product Family | ||||||
Loss Contingencies [Line Items] | ||||||
Royalties payable to licensor | 15 | |||||
Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Lease expiration year | 2,020 | |||||
Standard warranty period on repair or replacement of defective products | 24 months | |||||
Maximum | New 400 Gbps and 100 Gbps Product Family | ||||||
Loss Contingencies [Line Items] | ||||||
Royalties payable to licensor | 17 | |||||
Massachusetts facility | ||||||
Loss Contingencies [Line Items] | ||||||
Lease expiration month and year | 2019-01 | |||||
Tenant improvements cost | $ | $ 5,000,000 | |||||
New Jersey facility one | ||||||
Loss Contingencies [Line Items] | ||||||
Lease expiration month and year | 2018-06 | |||||
New Jersey facility two | ||||||
Loss Contingencies [Line Items] | ||||||
Lease expiration month and year | 2018-07 |
Commitments and Contingencies61
Commitments and Contingencies - Future Annual Minimum Lease Payments (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining 2,016 | $ 372 |
2,017 | 2,916 |
2,018 | 3,311 |
2,019 | 2,928 |
2,020 | 2,927 |
Thereafter | 9,868 |
Total | $ 22,322 |
Commitments and Contingencies62
Commitments and Contingencies - Schedule of Changes in Product Warrant Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Standard Product Warranty Disclosure [Abstract] | ||||
Warranty reserve, beginning of period | $ 1,306 | $ 642 | $ 763 | $ 508 |
Provisions made to warranty reserve during the period | 2,334 | 117 | 4,120 | 367 |
Charges against warranty reserve during the period | (1,531) | (44) | (2,774) | (160) |
Warranty reserve, end of period | $ 2,109 | $ 715 | $ 2,109 | $ 715 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 2,122 | $ 3,354 | $ 5,918 | $ 8,133 |
Effective income tax rate | 5.70% | 27.50% | 8.10% | 31.30% |
Unrecognized tax benefits | $ 2,100 | $ 2,100 |
Segment Information and Geograp
Segment Information and Geographic Data - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Segment Information and Geogr65
Segment Information and Geographic Data - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 135,304 | $ 65,419 | $ 335,985 | $ 170,509 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 25,644 | 13,405 | 65,660 | 31,385 |
China | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 55,665 | 15,009 | 143,017 | 50,004 |
Germany | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 37,333 | 24,339 | 82,054 | 64,500 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 16,662 | $ 12,666 | $ 45,254 | $ 24,620 |
Segment Information and Geogr66
Segment Information and Geographic Data - Summary of Total Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 21,119 | $ 15,925 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 10,797 | 10,896 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 2,076 | 3,227 |
Thailand | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 7,238 | 1,715 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 1,008 | $ 87 |
Concentrations of Risk - Summar
Concentrations of Risk - Summary of Customer Concentration of Total Revenue (Details) - Customer Concentration Risk - Revenue | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Customer A | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 28.00% | 16.00% | 34.00% | 24.00% |
Customer B | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 35.00% | 28.00% | 28.00% | 28.00% |
Customer C | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 13.00% | 12.00% |
Concentrations of Risk - Summ68
Concentrations of Risk - Summary of Customer Concentration of Accounts Receivable (Details) - Customer Concentration Risk - Accounts Receivable | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 32.00% | 21.00% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 31.00% | |
Customer C | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 24.00% | |
Customer D | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% |
Concentrations of Risk - Summ69
Concentrations of Risk - Summary of Supplier Concentration (Details) - Supplier Concentration Risk - Purchases | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Supplier X | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 42.00% | 56.00% | 43.00% | 46.00% |
Supplier Y | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 27.00% | 20.00% | ||
Supplier Z | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 18.00% | 24.00% | 19.00% | 36.00% |
Concentrations of Risk - Additi
Concentrations of Risk - Additional Information (Details) - Supplier Concentration Risk - Revenue - Research and development | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
United States | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 16.00% | 11.00% | 17.00% | |
Japan | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 11.00% | 16.00% | ||
Maximum | United States | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.00% | |||
Maximum | Japan | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.00% | 10.00% |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
ADI | ||||
Related Party Transaction [Line Items] | ||||
Purchase from related party | $ 1,500,000 | $ 492,000 | $ 3,300,000 | $ 1,100,000 |
M/A-COM | ||||
Related Party Transaction [Line Items] | ||||
Purchase from related party | $ 763,000 | $ 914,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event | Oct. 13, 2016USD ($)$ / sharesshares |
Follow-on offering | |
Subsequent Event [Line Items] | |
Shares issued and sold | shares | 1,210,302 |
Additional shares sold by selling stockholders | shares | 3,289,698 |
Sale of stock, price per share | $ / shares | $ 100 |
Aggregate proceeds from follow-on offering | $ | $ 116,800,000 |
Offering expenses | $ | 1,100,000 |
Proceeds from sale of shares | $ | $ 0 |
Underwriters | |
Subsequent Event [Line Items] | |
Underwriters granted period | 30 days |
Underwriters | Maximum | |
Subsequent Event [Line Items] | |
Additional shares sold by selling stockholders | shares | 675,000 |