Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
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 | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 40,258,201 | ||
Entity Public Float | $ 946.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 60,444 | $ 67,495 |
Marketable securities - short-term | 264,660 | 211,933 |
Accounts receivable | 90,831 | 86,602 |
Inventory | 25,511 | 62,232 |
Prepaid expenses and other current assets | 12,598 | 18,985 |
Total current assets | 454,044 | 447,247 |
Marketable securities - long term | 74,764 | 85,182 |
Property and equipment, net | 26,643 | 28,175 |
Deferred tax asset | 38,717 | 41,901 |
Other assets | 7,691 | 8,745 |
Total assets | 601,859 | 611,250 |
Current liabilities: | ||
Accounts payable | 46,650 | 47,819 |
Accrued liabilities | 31,848 | 37,234 |
Deferred Revenue (Non-current) | 5,101 | 573 |
Total current liabilities | 83,599 | 85,626 |
Income taxes payable | 8,791 | 21,034 |
Other long-term liabilities | 6,742 | 2,540 |
Total liabilities | 99,132 | 109,200 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 5,000 shares authorized; none issued and outstanding at December 31, 2018 and 2017 | 0 | 0 |
Common stock, $0.0001 par value; 150,000 shares authorized; 41,024 and 39,606 shares issued at December 31, 2018 and 2017, respectively | 4 | 4 |
Treasury stock, at cost; 974 shares and none at December 31, 2018 and 2017, respectively | (39,712) | 0 |
Additional paid-in capital | 360,267 | 324,944 |
Accumulated other comprehensive loss | (372) | (320) |
Retained earnings | 182,540 | 177,422 |
Total stockholders’ equity | 502,727 | 502,050 |
Total liabilities and stockholders’ equity | $ 601,859 | $ 611,250 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 41,024,000 | 39,606,000 |
Treasury stock, shares (in shares) | 974,000 | 0 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 339,891 | $ 385,166 | $ 478,412 |
Cost of revenue | 192,771 | 217,326 | 257,425 |
Gross profit | 147,120 | 167,840 | 220,987 |
Operating expenses: | |||
Research and development | 102,406 | 92,027 | 75,696 |
Sales, general and administrative | 51,864 | 38,807 | 27,676 |
(Gain) loss on disposal of property and equipment | 0 | (47) | 25 |
Total operating expenses | 154,270 | 130,787 | 103,397 |
(Loss) income from operations | (7,150) | 37,053 | 117,590 |
Other income (expense), net: | |||
Interest income, net | 7,209 | 3,389 | 453 |
Change in fair value of preferred stock warrant liability | 0 | 0 | (3,361) |
Other expense, net | (463) | (139) | (61) |
Total other income (expense), net | 6,746 | 3,250 | (2,969) |
(Loss) income before (benefit) provision for income taxes | (404) | 40,303 | 114,621 |
(Benefit) provision for income taxes | (5,320) | 1,795 | (16,956) |
Net income | 4,916 | 38,508 | 131,577 |
Accretion of redeemable convertible preferred stock | 0 | 0 | (1,722) |
Undistributed earnings attributable to participating securities | 0 | 0 | (34,571) |
Net income attributable to common stockholders - basic | 4,916 | 38,508 | 95,284 |
Net income attributable to common stockholders - diluted | $ 4,916 | $ 38,508 | $ 95,284 |
Net income per share attributable to common stockholders: | |||
Basic (in USD per share) | $ 0.12 | $ 0.99 | $ 3.77 |
Diluted (in USD per share) | $ 0.12 | $ 0.92 | $ 3.22 |
Weighted-average shares used to compute net income per share attributable to common stockholders: | |||
Basic (in shares) | 40,259 | 38,920 | 25,307 |
Diluted (in shares) | 41,997 | 41,690 | 29,585 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 4,916 | $ 38,508 | $ 131,577 |
Other comprehensive loss: | |||
Changes in unrealized loss on marketable securities, net of income taxes of ($18), $118 and $11 for the years ended December 31, 2018, 2017 and 2016, respectively | (7) | (304) | (16) |
Comprehensive income | $ 4,909 | $ 38,204 | $ 131,561 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Changes in unrealized loss on marketable securities, tax | $ (18) | $ 118 | $ 11 |
CONSOLIDATED STATEMENTS OF REDE
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Redeemable Convertible Preferred Stock |
Temporary equity, beginning balance (in shares) at Dec. 31, 2015 | 24,177 | ||||||
Temporary equity, beginning balance at Dec. 31, 2015 | $ 70,780 | ||||||
Beginning balance (in shares) at Dec. 31, 2015 | 6,669 | 0 | |||||
Beginning balance at Dec. 31, 2015 | $ 8,016 | $ 1 | $ 0 | $ 0 | $ 0 | $ 8,015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Temporary equity, accretion of preferred stock issuance costs | 94 | ||||||
Accretion of preferred stock issuance costs | (94) | (94) | |||||
Temporary equity, accretion to redemption value | $ 1,628 | ||||||
Accretion to redemption value | (1,628) | (950) | (678) | ||||
Vesting of restricted common stock (in shares) | 85 | ||||||
Exercise of common stock options (in shares) | 622 | ||||||
Exercise of common stock options | 1,286 | 1,286 | |||||
Stock-based compensation expense | 20,745 | 20,745 | |||||
Temporary equity, conversion of redeemable convertible preferred stock into common stock upon initial public offering (in shares) | (24,177) | ||||||
Temporary equity, conversion of redeemable convertible preferred stock into common stock upon initial public offering | $ (72,502) | ||||||
Conversion of redeemable convertible preferred stock into common stock upon initial public offering (in shares) | 24,177 | ||||||
Conversion of redeemable convertible preferred stock into common stock upon initial public offering | 72,502 | $ 2 | 72,500 | ||||
Reclassification of preferred stock warrant liability into additional paid-in capital upon conversion to common stock warrants | 6,615 | 6,615 | |||||
Issuance of common stock upon public offerings, net of offering costs incurred of $5,515 (in shares) | 5,780 | ||||||
Issuance of common stock upon public offerings, net of offering costs incurred of $5,515 | 209,036 | $ 1 | 209,035 | ||||
Vesting of restricted stock units (in shares) | 356 | ||||||
Vesting of restricted stock units | (14,592) | (14,592) | |||||
Issuance of common stock upon net exercise of common stock warrants (in shares) | 240 | ||||||
Common stock issued under employee stock purchase plan (in shares) | 69 | ||||||
Common stock issued under employee stock purchase plan | 1,348 | 1,348 | |||||
Unrealized losses on marketable securities, net of tax | (16) | (16) | |||||
Net income | 131,577 | 131,577 | |||||
Temporary equity, ending balance (in shares) at Dec. 31, 2016 | 0 | ||||||
Temporary equity, ending balance at Dec. 31, 2016 | $ 0 | ||||||
Ending balance (in shares) at Dec. 31, 2016 | 37,998 | 0 | |||||
Ending balance at Dec. 31, 2016 | 434,795 | $ 4 | $ 0 | 295,893 | (16) | 138,914 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Vesting of restricted common stock (in shares) | 85 | ||||||
Exercise of common stock options (in shares) | 699 | ||||||
Exercise of common stock options | 2,755 | 2,755 | |||||
Stock-based compensation expense | 23,373 | 23,373 | |||||
Vesting of restricted stock units (in shares) | 745 | ||||||
Common stock issued under employee stock purchase plan (in shares) | 79 | ||||||
Common stock issued under employee stock purchase plan | 2,923 | 2,923 | |||||
Unrealized losses on marketable securities, net of tax | (304) | (304) | |||||
Net income | 38,508 | 38,508 | |||||
Temporary equity, ending balance (in shares) at Dec. 31, 2017 | 0 | ||||||
Temporary equity, ending balance at Dec. 31, 2017 | $ 0 | ||||||
Ending balance (in shares) at Dec. 31, 2017 | 39,606 | 0 | |||||
Ending balance at Dec. 31, 2017 | $ 502,050 | $ 4 | $ 0 | 324,944 | (320) | 177,422 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Vesting of restricted common stock (in shares) | 21 | ||||||
Exercise of common stock options (in shares) | 489 | 489 | |||||
Exercise of common stock options | $ 2,512 | 2,512 | |||||
Stock-based compensation expense | 29,510 | 29,510 | |||||
Vesting of restricted stock units (in shares) | 782 | ||||||
Common stock issued under employee stock purchase plan (in shares) | 126 | ||||||
Common stock issued under employee stock purchase plan | 3,301 | 3,301 | |||||
Unrealized losses on marketable securities, net of tax | (7) | (7) | |||||
Net income | 4,916 | 4,916 | |||||
Treasury stock acquired (in shares) | 974 | ||||||
Treasury stock acquired | (39,712) | $ (39,712) | |||||
Temporary equity, ending balance (in shares) at Dec. 31, 2018 | 0 | ||||||
Temporary equity, ending balance at Dec. 31, 2018 | $ 0 | ||||||
Ending balance (in shares) at Dec. 31, 2018 | 41,024 | 974 | |||||
Ending balance at Dec. 31, 2018 | $ 502,727 | $ 4 | $ (39,712) | $ 360,267 | $ (372) | $ 182,540 |
CONSOLIDATED STATEMENTS OF RE_2
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Offering costs incurred | $ 0 | $ 0 | $ 5,515 |
Changes in unrealized loss on marketable securities, tax | $ (18) | $ 118 | $ 11 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 4,916 | $ 38,508 | $ 131,577 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 13,646 | 12,280 | 9,168 |
(Gain) loss on disposal of property and equipment | 0 | (47) | 25 |
Stock-based compensation | 29,593 | 23,373 | 20,745 |
Deferred income taxes | 3,133 | (18,368) | (12,344) |
Other non-cash (benefits) charges | (799) | 446 | 130 |
Change in fair value of preferred stock warrant liability | 0 | 0 | 3,361 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (4,229) | 21,525 | (66,867) |
Inventory | 36,721 | (30,551) | (3,761) |
Prepaid expenses and other current assets | 6,219 | (6,540) | (10,921) |
Other assets | 1,113 | (4,618) | (612) |
Accounts payable | 1,377 | (2,371) | 23,277 |
Accrued liabilities | (5,467) | 6,957 | 14,376 |
Deferred revenue | 8,357 | (548) | (6,387) |
Income taxes payable | (12,243) | 21,034 | 0 |
Other long-term liabilities | 748 | 813 | 1,077 |
Net cash provided by operating activities | 83,085 | 61,893 | 102,844 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (14,660) | (14,112) | (17,254) |
Purchases of marketable securities | (382,438) | (436,594) | (118,676) |
Sales and maturities of marketable securities | 340,920 | 242,735 | 14,525 |
Deposits | (59) | 64 | (86) |
Net cash used in investing activities | (56,237) | (207,907) | (121,491) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payment of capital lease obligation | 0 | 0 | (34) |
Proceeds from public offerings, net of underwriting discounts and commissions | 0 | 0 | 214,551 |
Payment of public offering costs | 0 | (201) | (3,490) |
Treasury stock acquired | (39,712) | 0 | 0 |
Proceeds from the issuance of common stock under stock-based compensation plans | 5,813 | 5,678 | 2,634 |
Employee taxes paid related to net share settlement of restricted stock units | 0 | 0 | (14,592) |
Net cash (used in) provided by financing activities | (33,899) | 5,477 | 199,069 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (7,051) | (140,537) | 180,422 |
Cash, cash equivalents and restricted cash—Beginning of period | 67,495 | 208,032 | 27,610 |
Cash, cash equivalents and restricted cash—End of period | 60,444 | 67,495 | 208,032 |
Supplemental cash flow disclosures: | |||
(Refunds received) cash paid for income taxes, net | (5,053) | 1,465 | 3,099 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Capital expenditures incurred but not yet paid | 196 | 2,742 | 1,982 |
Public offering costs incurred but not yet paid | 0 | 0 | 200 |
Accretion of redemption value on redeemable convertible preferred stock | 0 | 0 | 1,628 |
Accretion of redeemable convertible preferred stock issuance costs | 0 | 0 | 94 |
Conversion of redeemable convertible preferred stock into common stock | 0 | 0 | 72,502 |
Reclassification to additional paid-in capital of fair value of preferred stock warrant liability upon conversion to common stock warrants | $ 0 | $ 0 | $ 6,615 |
NATURE OF THE BUSINESS AND OPER
NATURE OF THE BUSINESS AND OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF THE BUSINESS AND OPERATIONS | 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 optical interconnect products that transform communications networks relied upon by cloud infrastructure operators and content and communication service providers through improvements in performance and capacity and reductions in associated costs. Our products fall into three product groups: embedded modules, pluggable modules and semiconductors. Our embedded module and pluggable module product groups consist of optical interconnect modules with transmission speeds ranging from 100 to 1,200 gigabits per second, or Gbps, for use in long-haul, metro and inter-data center markets. Our semiconductor product group consists of our low-power coherent digital signal processor application-specific integrated circuits ("DSP ASICs") and our silicon photonic integrated circuits ("silicon PICs") which are either integrated into our embedded and pluggable modules or sold to customers on a standalone basis for integration into internally developed or other merchant modules. We are also developing a 400ZR module that will expand our pluggable module product group, and enable inter-data center transmission capacity of 400 Gbps in the same compact pluggable form factors used for 400G client optics, including QSFP-DD and OSFP. The Company is headquartered in Maynard, Massachusetts, and has wholly-owned subsidiaries in North America, Europe and Asia. 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 $4.3 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. 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’ option to purchase up to an additional 675,000 shares from certain of the selling stockholders was not exercised. 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 $1.2 million . The Company received no proceeds from the sale of shares by the selling stockholders. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of Acacia Communications, Inc., and its Subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive loss. Other comprehensive loss refers to losses that are recorded as an element of stockholders’ equity but are excluded from net income. The Company’s other comprehensive loss consists of net unrealized gains and losses on available-for-sale securities, net of the related tax effect. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition and Deferred Revenue The Company adopted Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”) issued by the Financial Accounting Standards Board (“FASB”) effective January 1, 2018 using the modified retrospective method. As a result, the Company is required to disclose the accounting policies in effect prior to January 1, 2018, as well as the policies it has applied starting January 1, 2018. Periods prior to January 1, 2018 The Company derives its revenue from the sale of its products. The Company recognized revenue when persuasive evidence of an arrangement existed, delivery had occurred, the fee was fixed or determinable and collectability of the related receivable was reasonably assured. The Company considered delivery of its products to have occurred once title and risk of loss had been transferred. The Company’s products consist of hardware and software that function together to deliver the products’ essential functionality. The Company does not sell its software on a standalone basis. At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses associated with sales, recorded as a component of cost of revenue. The Company’s customers generally do not have return rights. A limited number of revenue arrangements with the Company’s customers included more than one element and required the application of ASC 605-25, Revenue Recognition—Multiple Element Arrangements. Arrangement consideration was allocated to each element with standalone value based on the relative selling prices of all of the elements in the arrangement using the fair value hierarchy. The Company determined the relative selling price of elements based on prices charged for standalone products, when sufficiently concentrated, and third-party evidence of similar elements, or, in the absence of these sources of evidence, based on management’s best estimate of selling price. Revenue recognized from multiple-element arrangements accounted for less than 1% of the Company’s total revenue during the years ended December 31, 2017 and 2016 . Deferred revenue represented either advance payments from customers or billings to customers for which the revenue recognition criteria had not been met. Deferred product costs represented products that had been billed to customers, for which the revenue associated with the arrangement had been deferred as a result of not meeting the revenue recognition criteria. The Company deferred the product costs until recognition of the related revenue occurred. Periods commencing January 1, 2018 The Company generates all of its revenue from contracts with customers. The Company considers customer purchase orders, which in many cases are governed by master purchasing agreements, to be contracts with customers. The Company’s contracts with customers are generally for product only, and do not include other performance obligations such as services, extended warranties or other material rights. As part of its assessment of each contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the price stated on the purchase order is typically fixed and represents the net consideration to which the Company expects to be entitled, and therefore there is no variable consideration. As the Company’s standard payment terms are less than one year, the Company has elected, as a practical expedient, to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable source that depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs upon shipment from the Company’s manufacturing site or delivery to the customer’s named location. In determining whether control has transferred, the Company considers if there is a present right to payment from the customer and when physical possession, legal title and risks and rewards of ownership have transferred to the customer. The Company also considered certain customer contracts that include acceptance clauses, but has concluded that delivery to the customer’s named location is the point at which the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the asset, and therefore the acceptance is considered a formality that does not impact the timing of revenue recognition. At times, the Company receives orders for products that may be delivered over multiple dates that may extend across reporting periods. The Company invoices for each delivery upon shipment and recognizes revenues for each distinct product delivered, assuming transfer of control has occurred. Generally, scheduled delivery dates are within one year, and the Company has elected to use the optional exemption whereby revenues allocated to partially completed contracts with an expected duration of one year or less are not disclosed. The transaction price related to contracts with unsatisfied performance obligations with a duration of more than one year as of December 31, 2018 was $2.1 million . The Company generally provides an assurance warranty that its products will substantially conform to the agreed-upon specifications for 12 to 24 months from the date of shipment. The Company’s liability is limited to the cost of repair or replacement of the defective part. The Company does not consider activities related to such warranties to be a separate performance obligation. The terms and conditions of sale generally do not allow for refunds or product returns other than for warranty repairs. The Company has a limited number of customer contracts that provide for the performance of services or include multiple performance obligations. Once the Company determines the performance obligations, the Company determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. The Company then allocates the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method or using the variable consideration allocation exception if the required criteria are met. The corresponding revenues are recognized as the related performance obligations are satisfied. A receivable is recognized in the period the Company ships the product. Payment terms on invoiced amounts are based on contractual terms with each customer. In some cases, if control of the product has not yet transferred to the customer or the timing of the payments made by the customer precedes the Company’s fulfillment of the performance obligation, the Company recognizes a contract liability that is classified as “deferred revenue.” Deferred product costs represent products that have been billed to customers, for which the revenue associated with the arrangement has been deferred as a result of not meeting the revenue recognition criteria. The Company defers the product costs until recognition of the related revenue occurs. The Company has concluded that none of the costs it has incurred to obtain and fulfill its ASC 606 contracts meet the capitalization criteria, and as such, there are no costs deferred and recognized as assets on the consolidated balance sheet at December 31, 2018 . Cost of Revenue The Company records all costs associated with its product sales in cost of revenue. These costs include the cost of materials, contract manufacturing fees, shipping costs and quality assurance. Cost of revenue also includes indirect costs such as warranty, excess and obsolete inventory charges, general overhead costs and depreciation. Financial Instruments Cash equivalents include all highly liquid investments with an original maturity of three months or less upon acquisition. Cash equivalents may consist of bank deposit accounts, money market funds, repurchase agreements, commercial paper, certificates of deposit, asset-backed securities and corporate debt securities. 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 investments in marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. The Company’s investments in marketable debt securities are carried at fair value, with unrealized gains and losses, net of taxes, reported as a component of accumulated other comprehensive loss in stockholders’ equity, with the exception of unrealized losses believed to be other-than-temporary which are reported in earnings in the current period. Concentrations of Credit Risk Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. The majority of the Company’s cash and cash equivalents are at two financial institutions and the balances often exceed federally insured limits. Management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially creditworthy and, accordingly, minimal credit risk exists with respect to those balances. Marketable securities consist of investments in U.S. Treasury bonds, commercial paper, certificates of deposit, asset-backed securities and corporate debt securities. The main objective of the Company’s current investment policy is to preserve capital and maintain liquidity. The Company seeks to limit the amount of investments in any single issuer. As a result, the Company believes that, as of December 31, 2018 and 2017 , its concentration of credit risk related to marketable securities was not significant. To minimize credit risk related to accounts receivable, ongoing credit evaluations of customers’ financial condition are performed and the Company maintains allowances for potential credit losses as needed. The Company has determined that no allowance is needed as of December 31, 2018 and 2017 , as all accounts receivable balances are expected to be collected. Inventory Inventory, which consists of raw materials, work-in-process, and finished goods, is stated at the lower of cost or net realizable value, as determined on a specific cost basis and using the first-in, first-out convention. The Company reduces the carrying value of inventory to its estimated net realizable value for those items that are potentially excess, obsolete or slow moving based on changes in customer demand, technology developments or other economic factors. Such reductions in the carrying value of inventory are recorded within cost of revenue in the consolidated income statements. Any excess or obsolete inventory write-downs taken establish a new cost basis for the underlying inventory and cannot be reversed if there are subsequent increases in the Company’s demand forecast. If the Company is later able to sell such inventory, any related reserves would be reversed in the period of sale. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. The estimated useful lives of the Company’s property and equipment are as follows: Engineering laboratory equipment 3-7 years Computer software 1-3 years Computer equipment 3 years Furniture and fixtures 3-7 years Leasehold improvements Lesser of lease term or life of asset When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are derecognized from the accounts and the resulting gain or loss is reflected in the consolidated income statements. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. When such events occur, the Company compares the carrying amounts of the assets to their estimated undiscounted future cash flows. If this comparison indicates that there is an impairment, the amount of the impairment is calculated as the difference between the carrying value and the fair value. No impairments have been recognized for the years ended December 31, 2018 , 2017 and 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. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. The estimated cost associated with fulfilling the Company’s warranty obligation to customers is recorded in cost of revenue. Refer to Note 12 for additional information regarding warranty activity. Advertising Costs The Company expenses advertising costs as incurred. During the years ended December 31, 2018 , 2017 and 2016 , the Company did not incur any advertising expenses. Research and Development Costs The Company expenses all research and development costs as incurred. Research and development costs consist primarily of salary and benefit expenses, including stock-based compensation, for employees, costs for contractors engaged in research, design and development activities, costs incurred directly and with support from external vendors, such as outsourced development costs, as well as support costs for prototypes, depreciation, purchased intellectual property, facilities and travel. Stock-Based Compensation The Company accounts for share-based payment awards granted to employees at fair value, which is measured using the fair value of the Company’s common stock on the grant date for time-vested restricted stock units (“RSUs”). Other input assumptions are used to determine the valuation of performance- or market-based RSU awards, as well as in the Black-Scholes option-pricing model for stock option awards and employee stock purchase rights. The measurement date for the fair value of employee awards is the date of grant. For all time-vested awards, stock-based compensation costs are recognized as expense on a ratable basis over the requisite service period, which is generally the vesting period. For awards with market and/or performance conditions, the Company recognizes stock-based compensation expense using the accelerated attribution method. Changes in Fair Value of Redeemable Convertible Preferred Stock Warrant Liability The Company’s redeemable convertible preferred stock warrants which existed prior to the Company’s IPO required liability classification. At initial recognition, the warrants were recorded at their estimated fair value and subject to remeasurement at each balance sheet date, with changes in fair value recognized as a component of total other income (expense), net. In connection with the Company’s IPO, the warrants converted to common stock warrants and accordingly, the Company remeasured the liability at the time of the IPO and then reclassified the redeemable convertible preferred stock warrant liability to additional paid-in capital. See Note 9 for additional information. As of December 31, 2018 , 2017 and 2016 , there were no longer any warrants outstanding. Foreign Currency Transactions The functional currency of the Company’s Subsidiaries is the U.S. dollar. All monetary assets and liabilities denominated in a foreign currency are revalued into U.S. dollars at the exchange rate on the consolidated balance sheet date. When transactions are required to be paid in the local currency of any Subsidiary, any resulting foreign currency transaction gain or loss is recorded as a component of other expense, net, in the consolidated income statements. To date, foreign currency transaction gain or loss associated with the Company’s Subsidiaries has not been significant. During the years ended December 31, 2018 , 2017 and 2016 , the Company recorded foreign currency transaction losses of $0.4 million , $0.2 million and $0.1 million , respectively. Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements and tax returns. Deferred tax assets and liabilities are determined based upon the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and for loss and credit carryforwards, using enacted tax rates expected to be in effect in the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is not more likely than not that these assets will be realized. The Company accrues liabilities for potential payments of tax to various tax authorities related to uncertain tax positions. Liabilities are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential uncertainties related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of the provision for income taxes, if applicable. As of December 31, 2018 and 2017 , the Company identified $5.0 million and $4.5 million of gross uncertain tax positions, respectively. Included in those balances as of December 31, 2018 and 2017 are $3.0 million and $2.3 million of tax benefits, respectively, that, if recognized, would impact the effective tax rate. These have been accrued for as long-term liabilities on the Company’s consolidated balance sheets. Operating Segments 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 chief executive officer, in deciding how to allocate resources and assess performance. The Company’s CODM evaluates the Company’s financial information for the purpose of allocating resources and assessing the performance of these resources on a consolidated basis. Revenue by geographic country, based on ship-to destinations, which in certain instances may be the location of a contract manufacturer rather than the Company’s end customer, was as follows (in thousands): Year Ended December 31, 2018 2017 2016 United States $ 56,839 $ 60,723 $ 87,678 China 98,906 148,431 194,917 Germany 58,711 57,051 114,678 Thailand 68,217 48,016 33,136 Other 57,218 70,945 48,003 Total revenue $ 339,891 $ 385,166 $ 478,412 Total long-lived assets by geographic country consisted of the following as of December 31, 2018 and 2017 (in thousands): December 31, 2018 2017 United States $ 18,123 $ 19,065 Thailand 4,147 7,065 China 1,703 1,165 Other 2,670 880 Total long-lived assets $ 26,643 $ 28,175 Net Income per Share Attributable to Common Stockholders Up to and including the year ended December 31, 2016, the year in which the IPO occurred, 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 considered its redeemable convertible preferred stock to be participating securities. In the event a cash dividend was paid on common stock, the holders of redeemable convertible preferred stock were 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 redeemable convertible preferred stock did 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 included contractual participation rights in undistributed earnings, were excluded from the computation of basic and diluted net income per share attributable to common stockholders. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, or ASC 606, which supersedes the revenue recognition requirements in Accounting Standard Codification 605, Revenue Recognition (“ASC 605”) and affects any entity that enters into contracts with customers to transfer goods and services. On January 1, 2018, the Company adopted ASC 606 and all related amendments for all contracts not completed as of the adoption date using the modified retrospective method. The Company recognized the $0.2 million cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. See Note 4 for further disclosures and detail regarding revenue. As the impact of ASC 606 is not material to the Company, there is no pro-forma disclosure presented as of and for the year ended December 31, 2018 . In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in ASU 2016-16 are effective for fiscal years beginning after December 15, 2017, and were adopted by the Company in the first quarter of 2018. The amendments in ASU 2016-16 were applied using a modified retrospective approach. As the Company has not had any intra-entity transfers of assets in such period other than inventory, there has been no impact from the adoption of this standard. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows - Restricted Cash (“ASU 2016-18”). The amendments in ASU 2016-18 require that the statement of cash flows explain the change in total cash, cash equivalents and restricted cash. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted the amendments in ASU 2016-18 in the first quarter of 2018 using a retrospective transition method. Other than the revised statement of cash flows presentation of restricted cash in the prior periods presented, which were immaterial, the adoption of ASU 2016-18 did not have a material impact on the Company’s consolidated financial statements. There is no impact to the cash flow statement for the year ended December 31, 2018 as there was no restricted cash balance as of the beginning or end of the period. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). ASU 2018-02 allows an entity to reclassify stranded income tax effects resulting from the U.S. Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive loss to retained earnings. The amendments in ASU 2018-02 are effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted and applied the ASU 2018-02 amendments in the second quarter of 2018. The adoption of the ASU 2018-02 amendments resulted in a $0.1 million cumulative-effect adjustment as of April 1, 2018, the first day of the Company’s second quarter of fiscal year 2018, between accumulated other comprehensive loss and retained earnings for the amount of the stranded tax effects. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in ASU 2018-15 are effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company adopted and applied the ASU 2018-15 amendments on a prospective basis as of July 1, 2018, the first day of the Company’s third quarter of fiscal year 2018. The adoption of the ASU 2018-15 amendments resulted in approximately $0.2 million of implementation costs incurred in a hosting arrangement that is a service contract being capitalized as of December 31, 2018 . 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 (“ASU 2016-13”). ASU 2016-13 is intended to provide more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The main provisions include presenting financial assets measured at amortized cost at the amount expected to be collected, which is net of an allowance for credit losses, and recording credit losses related to available-for-sale securities through an allowance for credit losses. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, and must be applied using a modified retrospective approach with earlier adoption permitted for fiscal years beginning after December 15, 2018. The Company does not expect the adoption of this amendment to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 will require lessees to recognize a right-of-use asset and lease liability on the balance sheet for virtually all leases. For the income statement, ASU 2016-02 retains a dual model requiring leases to be classified as either operating or financing leases. Operating leases will result in straight-line expense, and financing leases will have a front-loaded expense pattern with an interest expense component. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, and must be applied using a modified retrospective approach with earlier adoption permitted. The Company adopted this guidance on January 1, 2019, and expects to recognize a lease liability estimated between $14.8 million and $16.8 million , and a related right-of-use asset estimated between $20.3 million and $22.3 million on its consolidated balance sheet, respectively, with the difference attributable to prepaid and accrued rent payments. These adjustments will not have a material impact on the Company’s consolidated income statement. The Company is continuing to finalize the impacts of the new standard, including the discount rate to be applied in these valuations and increased leasing disclosures, as well as policy and process changes to support the new standard. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company adopted ASC 606 effective January 1, 2018 using the modified retrospective method. The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of retained earnings. The comparative information is accounted for in accordance with the previous revenue guidance, ASC 605, and has not been restated. In accordance with ASC 606, the Company recognizes revenue under the core principle to depict the transfer of control to the Company’s customers in an amount reflecting the consideration the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when a performance obligation is satisfied. Revenue for product sales is recognized at the point in time when control transfers to the Company’s customers, which is generally when products are shipped from the Company’s manufacturing facilities or when delivered to the customer’s named location. When the Company performs shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered to be fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Taxes collected on behalf of customers relating to product sales and remitted to governmental authorities, principally sales taxes, are excluded from revenue. The opening and closing balances of the Company’s deferred revenue and accounts receivable are as follows (in thousands): Balance at Beginning of Period (1/1/18) Increase Balance at End of Period Year Ended December 31, 2018 Accounts Receivable $ 86,602 $ 4,229 $ 90,831 Deferred Revenue (Current) $ 197 $ 4,904 $ 5,101 Deferred Revenue (Non-current) $ 254 $ 3,453 $ 3,707 The amounts of revenue recognized in the period that were included in the opening deferred revenue balance were immaterial for the year ended December 31, 2018 . The increase in current and non-current deferred revenue is related to billings to, or advance payments from, customers for which the Company has not yet fulfilled its performance obligations. Deferred revenue not expected to be recognized within the Company’s operating cycle of one year is presented as a component of “Other long-term liabilities” on the consolidated balance sheet. Disaggregation of Revenue The following table provides information about disaggregated revenue based on product type. Further disaggregation of revenue by geographic country can be found in Note 3. Year Ended As a % of December 31, 2018 Total Revenue (dollars in thousands) Embedded Modules $ 77,286 23 % Pluggable Modules 189,533 56 % Semiconductors 73,072 21 % Total revenue $ 339,891 100 % |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The following tables set forth the Company’s cash, cash equivalents and short- and long-term marketable securities as of December 31, 2018 and 2017 (in thousands): December 31, 2018 Amortized Cost Gross Unrealized Estimated Fair Value Cash and Cash Marketable Gains Losses Less than One Year Greater than One Year Cash $ 49,650 $ — $ — $ — $ 49,650 $ 49,650 $ — Money market funds 1,563 — — — 1,563 1,563 — U.S. treasury bonds 40,367 — (9 ) (3 ) 40,355 — 40,355 Commercial paper 60,435 — (13 ) — 60,422 6,668 53,754 Certificates of deposit 36,839 13 (12 ) — 36,840 — 36,840 Asset-backed securities 47,798 1 (63 ) (22 ) 47,714 — 47,714 Corporate debt securities 163,654 9 (239 ) (100 ) 163,324 2,563 160,761 Total $ 400,306 $ 23 $ (336 ) $ (125 ) $ 399,868 $ 60,444 $ 339,424 December 31, 2017 Amortized Cost Gross Unrealized Estimated Fair Value Cash and Cash Marketable Gains Losses (1) Cash $ 43,223 $ — $ — $ 43,223 $ 43,223 $ — Money market funds 11,070 — — 11,070 11,070 — Repurchase agreements 12,500 — — 12,500 12,500 — U.S. treasury bonds 26,316 — (80 ) 26,236 — 26,236 Commercial paper 60,623 — (9 ) 60,614 — 60,614 Certificates of deposit 34,993 6 (33 ) 34,966 — 34,966 Asset-backed securities 33,374 1 (53 ) 33,322 702 32,620 Corporate debt securities 142,960 9 (290 ) 142,679 — 142,679 Total $ 365,059 $ 16 $ (465 ) $ 364,610 $ 67,495 $ 297,115 (1) Losses represent marketable securities that were in loss positions for less than one year. The proceeds from the sales and maturities of marketable securities, which were primarily reinvested and resulted in realized gains and losses, were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Proceeds from the sales and maturities of marketable securities $ 340,920 $ 242,735 $ 14,525 Realized gains $ 18 $ 16 $ — Realized losses $ (109 ) $ (2 ) $ — The contractual maturities of short-term and long-term marketable securities held at December 31, 2018 and 2017 are as follows (in thousands): December 31, 2018 December 31, 2017 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value Due within one year $ 264,959 $ 264,660 $ 212,137 $ 211,933 Due after one year through four years 74,902 74,764 85,426 85,182 Total $ 339,861 $ 339,424 $ 297,563 $ 297,115 At December 31, 2018 , 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 | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory consisted of the following as of December 31, 2018 and 2017 (in thousands): December 31, 2018 2017 Raw materials $ 18,420 $ 32,599 Work-in-process 218 965 Finished goods 6,873 28,668 Inventory $ 25,511 $ 62,232 On April 15, 2018, the U.S. Department of Commerce imposed a seven-year denial of export privileges that prohibited sales to ZTE Kangxun Telecom Co. Ltd. and certain of its affiliates, together ZTE, the Company’s largest customer (the “ZTE Ban”). As a result, the Company recorded inventory write-offs of $3.9 million in the first quarter of 2018 related to finished goods inventory that had either been designed specifically for ZTE, or had been intended for consumption by ZTE and had become excess inventory due to the suspension of sales to ZTE. On June 8, 2018, ZTE and the U.S. Department of Commerce reached a new settlement, pursuant to which the ZTE Ban was terminated and ZTE was removed from the Denied Persons List effective July 13, 2018. As a result of the ZTE Ban being terminated, the Company was able to consume a portion of the ZTE inventory, resulting in a remaining reserve of $1.0 million as of December 31, 2018 . |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of December 31, 2018 and 2017 (in thousands): December 31, 2018 2017 Engineering laboratory equipment $ 50,590 $ 39,433 Computer software 3,132 2,281 Computer equipment 6,018 4,380 Furniture and fixtures 3,227 3,041 Leasehold improvements 3,581 2,282 Construction in progress 1,279 4,591 Total property and equipment 67,827 56,008 Less: Accumulated depreciation (41,184 ) (27,833 ) Property and equipment, net $ 26,643 $ 28,175 Depreciation expense was $13.6 million , $12.3 million and $9.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31, 2018 and 2017 (in thousands): December 31, 2018 2017 Employee-related liabilities $ 8,509 $ 5,233 Goods and services received not invoiced 3,592 12,827 Accrued manufacturing related expenses 2,342 4,007 Warranty reserve 8,220 8,306 Other accrued liabilities 9,185 6,861 Accrued liabilities $ 31,848 $ 37,234 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | 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 an original maturity of three months or less to be cash equivalents. The Company’s investments are in money market funds, repurchase agreements, U.S. treasury bonds, commercial paper, certificates of deposit, asset-backed securities and corporate debt securities, which are classified as Level 2 within the fair value hierarchy, were initially valued at the transaction price and subsequently valued at each reporting date utilizing market-observable data. The market-observable data included reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. The fair value of these assets measured on a recurring basis was determined using the following inputs as of December 31, 2018 and 2017 (in thousands): December 31, 2018 Quoted Significant Significant Total Fair Assets: Money market funds $ — $ 1,563 $ — $ 1,563 U.S. treasury bonds — 40,355 — 40,355 Commercial paper — 60,422 — 60,422 Certificates of deposit — 36,840 — 36,840 Asset-backed securities — 47,714 — 47,714 Corporate debt securities — 163,324 — 163,324 Total $ — $ 350,218 $ — $ 350,218 December 31, 2017 Quoted Significant Significant Total Fair Assets: Money market funds $ — $ 11,070 $ — $ 11,070 Repurchase agreements — 12,500 — 12,500 U.S. treasury bonds — 26,236 — 26,236 Commercial paper — 60,614 — 60,614 Certificates of deposit — 34,966 — 34,966 Asset-backed securities — 33,322 — 33,322 Corporate debt securities — 142,679 — 142,679 Total $ — $ 321,387 $ — $ 321,387 There were no transfers between fair value measurement levels during the years ended December 31, 2018 and 2017 . For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. Preferred Stock Warrants Prior to the closing of the Company’s IPO in May 2016, the Company remeasured the fair value of its preferred stock warrants at each balance sheet date. Any changes in fair value were recognized as a component of other income (expense), net in the consolidated income statements. 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 were the fair value of the Company’s series B and series C preferred stock. The Company also utilized risk-free interest rate, expected dividend yield, expected volatility and expected term as observable inputs in determining the fair value of the preferred stock warrants. There is not a direct interrelationship between the unobservable inputs and the observable inputs. 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 year ended December 31, 2016 is as follows (in thousands): Year Ended December 31, 2016 Preferred stock warrant liability at beginning of period $ 3,254 Change in fair value 3,361 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 $ — The warrants to purchase shares of preferred stock were converted into warrants to purchase shares of common stock upon the closing of the IPO. |
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK COMPENSATION PLANS | STOCK COMPENSATION PLANS The following table summarizes the classification of stock-based compensation in the consolidated income statements for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Cost of revenue $ 2,075 $ 1,993 $ 1,629 Research and development 17,564 14,150 12,347 Sales, general and administrative 9,975 7,230 6,769 Total stock-based compensation $ 29,614 $ 23,373 $ 20,745 The following table summarizes stock-based compensation expense by award type for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Restricted stock units $ 25,864 $ 19,455 $ 17,862 Stock options 2,343 2,614 2,082 Employee stock purchase plan 1,284 1,188 696 Other awards 123 116 105 Total stock-based compensation $ 29,614 $ 23,373 $ 20,745 2009 Stock Plan In November 2009, the Company adopted the 2009 Stock Plan, as amended in October 2015 and March 2016 (the “2009 Plan”). The 2009 Plan provided for the grant of incentive stock options, nonstatutory stock options, RSUs and the right to purchase restricted common stock to employees, officers, directors and advisors of the Company. Recipients of incentive stock options and nonstatutory stock options are eligible to purchase shares of the Company’s common stock at an exercise price equal to the estimated fair value of such stock on the grant date. Stock options and RSUs granted under the 2009 Plan generally vest as follows (1) 20% on the first anniversary of the original vesting date, with the balance vesting monthly over the remaining four years or (2) 25% on the first anniversary of the original vesting date, with the balance vesting monthly or quarterly over the remaining three years , unless they contain specific performance and/or market-based vesting provisions. The maximum term of stock options and RSUs granted under the 2009 Plan is ten and seven years, respectively. The 2016 Equity Incentive Plan (the “2016 Plan”) became effective on May 12, 2016, at which time the Company ceased granting equity awards under the 2009 Plan. The then outstanding equity awards granted under the 2009 Plan remain outstanding, subject to the terms of the 2009 Plan and applicable award agreements, until such shares are issued under those awards, by exercise of stock options or settlement of restricted awards, or until the awards terminate or expire by their terms. When the 2016 Plan became effective, there were 497,302 remaining shares available for grant under the 2009 Plan which were added to the reserves of the 2016 Plan. 2016 Equity Incentive Plan The 2016 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, RSUs and other stock-based awards. Recipients of incentive stock options and nonstatutory stock options are eligible to purchase shares of the Company’s common stock at an exercise price equal to the fair value of such stock on the grant date. Stock options and RSUs granted under the 2016 Plan generally vest 25% on the first anniversary of the original vesting date, with the balance vesting quarterly or annually over the remaining three years , unless they contain specific performance and/or market-based vesting provisions. The maximum term of stock options granted under the 2016 Plan is ten years . The 2016 Plan will terminate ten years from the effective date, unless it is terminated earlier by the Company’s board of directors. As of December 31, 2018 , there were 3,203,355 shares available for future issuance. The number of shares reserved for issuance under the 2016 Plan will increase automatically on the first day of each January through 2025 equal to the least of (i) 3,600,000 shares of Common Stock, (ii) 4.0% of the outstanding shares on such date and (iii) an amount determined by the board of directors. In December 2018 , the board of directors approved a 4.0% increase to the 2016 Plan share pool pursuant to the 2016 Plan’s evergreen provision. A maximum of 7,917,554 shares of the Company’s common stock are authorized for issuance under the 2016 Plan following this increase. 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. No stock option awards were issued to employees during the year ended December 31, 2017 . During the years ended December 31, 2018 and 2016 , the assumptions used in the Black-Scholes model were as follows: Year Ended December 31, 2018 2016 Risk-free interest rate 2.9% 1.2% - 1.6% Expected dividend yield None None Expected volatility 53.5% 59.5% - 60.0% Expected term (in years) 6.3 6.3 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. For options awarded during 2016 and prior, as there was limited trading history associated with the Company’s common stock during those periods, 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. For options awarded during 2018, the expected volatility was derived from a blend of average historical stock volatilities of several unrelated public companies within the Company’s industry and the Company’s historical volatility, both 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 year ended December 31, 2018 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, 2017 1,634 $ 8.34 6.6 $ 47,356 Granted 10 $ 28.77 Exercised (489 ) $ 5.22 $ 15,855 Cancelled (39 ) $ 11.48 Outstanding at December 31, 2018 1,116 $ 9.78 5.7 $ 33,113 Vested and expected to vest at: December 31, 2018 1,116 $ 9.78 5.7 $ 33,113 Exercisable at: December 31, 2018 837 $ 7.38 5.3 $ 26,544 As of December 31, 2018 and 2017 , there was $2.5 million and $4.8 million of unrecognized compensation cost related to unvested common stock options, which is expected to be recognized over weighted-average periods of 1.1 years and 2.2 years , respectively. The weighted-average grant date fair value of stock options granted was $15.58 and $11.82 during the years ended December 31, 2018 and 2016 , respectively. No stock options were granted by the Company during the year ended December 31, 2017 . The intrinsic value of stock options exercised during the years ended December 31, 2018 , 2017 and 2016 was $15.9 million , $33.5 million and $35.0 million , respectively. Restricted Stock Units Prior to the IPO, the Company granted 1.3 million RSUs to employees, directors and executives under the 2009 Plan which vest upon the satisfaction of both a service condition, generally a period of four years , and a performance condition, referred to as the “Performance Awards.” The performance condition was satisfied upon the closing of the Company’s IPO on May 18, 2016. 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. During the year ended December 31, 2016, the Company recorded approximately $10.4 million of stock-based compensation expense related to these Performance Awards, including the immediate recognition of approximately $4.9 million of stock-based compensation expense upon closing of the Company’s IPO. During the year ended December 31, 2016, the Company granted 200,000 RSUs to executives which have a market condition (“market-based RSUs”). The 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 market conditions were achieved in 2016, resulting in the recognition of $3.1 million of stock-based compensation expense related to these RSUs during the year ended December 31, 2016. The Company estimated the fair value of the market-based RSUs using a Monte Carlo valuation model on the date of grant, using the following 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 During the year ended December 31, 2017, the Company granted 461,000 RSUs to executive officers that include a market condition and a performance condition in addition to a service condition (“2017 PRSUs”). Each 2017 PRSU represents the right to receive one share of the Company’s common stock when and if the applicable vesting conditions are satisfied. The number of 2017 PRSUs that are subject to the service condition is determined based on the achievement of certain market and performance objectives over a two -year period running from January 1, 2017 through December 31, 2018 (the “Earned 2017 PRSUs”). Thirty-three percent of any Earned 2017 PRSUs will vest on the later of (i) March 17, 2019 and (ii) the date that the number of Earned 2017 PRSUs is determined by the Compensation Committee after December 31, 2018. Thereafter, an additional 33% of the Earned 2017 PRSUs will vest on March 17, 2020 and the remaining 34% of the Earned 2017 PRSUs will vest on March 17, 2021 . Vesting of Earned 2017 PRSUs is subject to the applicable officer’s continued provision of services to the Company through the applicable vesting date. The number of 2017 PRSUs that become Earned 2017 PRSUs will be determined based on the extent to which the Company achieves (i) a revenue growth objective, based on the compound annual growth rate of the Company’s total revenue by measuring the Company’s revenue for fiscal year 2018 against the Company’s revenue for fiscal year 2016 (the “Revenue Growth Objective”), and/or (ii) a stock price objective during the two -year period (the “Stock Price Objective”). If neither the Revenue Growth Objective nor the Stock Price Objective is achieved, none of the 2017 PRSUs will become Earned 2017 PRSUs. Any 2017 PRSUs that do not become Earned 2017 PRSUs shall be forfeited once the number of Earned 2017 PRSUs is determined by the Compensation Committee after December 31, 2018. For the 2017 PRSUs, the related stock-based compensation expense is amortized using the accelerated method over the vesting period of four years. During the performance period, the Company estimated the fair value of the 2017 PRSUs using management’s best estimate of whether it was probable or not probable that the Revenue Growth Objective would be satisfied using actual revenue results for audited periods or the most current available projections of future revenue performance at that time, which was reassessed at each reporting period. Changes in the subjective and probability-based assumptions can materially affect the estimate of fair value of stock-based compensation and consequently, the related amount recognized in the Company’s consolidated income statements. The Company estimated the fair value of the 2017 PRSUs using a Monte Carlo valuation model on the date of grant, using the following assumptions: Risk-free interest rate 1.3% Expected dividend yield None Expected volatility 58.3% Expected term (in years) 1.8 Grant date fair value of underlying shares $40.38 - $55.02 During the year ended December 31, 2018, the Company granted awards covering up to a maximum of 94,854 performance-based RSUs to executive officers that include a market condition in addition to a service condition (“2018 PRSUs”). Each 2018 PRSU represents the right to receive one share of the Company’s common stock when and if the applicable vesting conditions are satisfied. The 2018 PRSUs are subject to performance-based vesting. The number of 2018 PRSUs that vest is measured based on the level of achievement of a performance objective over a three -year period (the “Performance Period”) running from January 1, 2018 through December 31, 2020, as determined and certified by the compensation committee of the Company’s board of directors following the end of the Performance Period. The level of achievement will be determined based on the Company’s percentile achievement of relative total shareholder returns against an external comparator group during the Performance Period (the “Relative TSR Objective”). Vesting of the 2018 PRSUs is also subject to the applicable officer’s continued provision of services to the Company through the vesting date, except in the case of death or disability where vesting will be pro-rated for time worked during the Performance Period. No 2018 PRSUs will vest unless a threshold level of achievement of the Relative TSR Objective is achieved. For the 2018 PRSUs, the related stock-based compensation expense is amortized using the accelerated method over the vesting period of approximately three years . The Company estimated the fair value of the 2018 PRSUs using a Monte Carlo valuation model on the date of grant, using the following assumptions: Risk-free interest rate 2.3% Expected dividend yield None Expected volatility 51.4% Expected term (in years) 2.9 Grant date fair value of underlying shares $34.59 - $39.02 All other RSUs granted to employees, executives and directors vest upon the satisfaction of a service condition, generally over four years. 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 expense is generally recognized on a ratable basis over the requisite vesting period. 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. Through December 31, 2018 , the Company has no t settled any vested RSUs with cash. A summary of the changes in the Company’s RSUs during the year ended December 31, 2018 is as follows: Restricted Shares (in thousands) Weighted-Average Grant Date Fair Value Outstanding at December 31, 2017 2,288 $ 36.08 Granted 847 $ 40.48 Vested (782 ) $ 27.56 Cancelled (28 ) $ 36.56 Outstanding at December 31, 2018 2,325 $ 40.55 At December 31, 2018 and 2017 , there was $52.5 million and $47.8 million of total unrecognized compensation cost related to unvested RSUs, which will be recognized over a weighted-average period of 1.9 years and 2.9 years , respectively. 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. As of December 31, 2018 , there were 807,421 shares available for future issuance under the 2016 ESPP. 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, in an amount equal to the lowest of: (1) 900,000 shares of the Company’s common stock; (2) 1.0% of the total number of shares of the Company’s common stock outstanding on the first day of the applicable fiscal year; and (3) an amount determined by the Company’s board of directors. In December 2018 , the board of directors determined no increase to the ESPP share pool was needed. A maximum of 1,081,047 shares of the Company’s common stock are authorized for issuance under the ESPP Plan following this decision. The 2016 ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of eligible compensation, subject to any plan limitations. The 2016 ESPP provides for 6-month offering periods beginning in May and November of each year. On each purchase date, eligible employees 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 (1) the first trading day of the applicable offering period and (2) the last trading day of the applicable offering period. The fair value of the awards issued under the 2016 ESPP to employees was estimated at the beginning of the offering period using a Black-Scholes option-pricing model with the following assumptions: Year Ended December 31, 2018 2017 2016 Risk-free interest rate 1.3 % - 2.1% 0.5% - 1.0% 0.4% Expected dividend yield None None None Expected volatility 48.6 % - 66.4% 48.7% - 58.7% 57.3% Expected term (in years) 0.5 0.5 0.5 Preferred Stock The Company has 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 December 31, 2018 , 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. |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Up to and including the year ended December 31, 2016, the year in which the IPO occurred, 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 considered its redeemable convertible preferred stock to be participating securities. In the event a cash dividend was paid on common stock, the holders of preferred stock were 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 did 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 included contractual participation rights in undistributed earnings, were 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, no earnings were allocated to participating securities during 2017 and 2018 . 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): Year Ended December 31, 2018 2017 2016 Numerator: Net income $ 4,916 $ 38,508 $ 131,577 Less: preferred stock accretion — — (1,722 ) Less: undistributed earnings attributable to participating securities — — (34,571 ) Net income attributable to common stockholders - basic and diluted $ 4,916 $ 38,508 $ 95,284 Denominator: Weighted-average shares used to compute net income per share attributable to common stockholders - basic 40,259 38,920 25,307 Dilutive effect of stock options, unvested restricted stock and restricted stock units, preferred stock warrants and employee stock purchase plan 1,738 2,770 4,278 Weighted-average shares used to compute net income per share attributable to common stockholders - diluted 41,997 41,690 29,585 Net income per share attributable to common stockholders Basic $ 0.12 $ 0.99 $ 3.77 Diluted $ 0.12 $ 0.92 $ 3.22 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: Year Ended December 31, 2018 2017 2016 Options to purchase common stock 91 87 46 Unvested restricted stock units 336 425 46 Employee stock purchase plan 1 — — As discussed further in Note 10, in 2018 the Company granted a maximum of 94,854 2018 PRSUs to executives that include a market condition and a service condition. An estimate of the number of shares contingently issuable based on average market prices through December 31, 2018 has been included in the antidilutive table above. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases The Company’s principal facilities are located in Maynard, Massachusetts, and Holmdel, New Jersey and are leased by the Company under non-cancelable operating leases that expire in February 2025 , with respect to the Massachusetts facility, and December 2023 , with respect to the New Jersey facility. The Company also leases office space in various locations with expiration dates between 2019 and 2027 . Several of the lease agreements include leasehold improvement incentives, escalating lease payments, renewal provisions and other provisions which require the Company to pay taxes, insurance and maintenance costs. All of the Company’s facility leases are accounted for as operating leases. Rent expense is recorded over the lease term on a straight-line basis. Rent expense for the years ended December 31, 2018 , 2017 and 2016 was $4.7 million , $5.2 million and $1.3 million , respectively. Future minimum lease payments due under these non-cancelable lease agreements as of December 31, 2018 , are as follows (in thousands): Amounts 2019 $ 3,888 2020 4,280 2021 4,394 2022 4,248 2023 4,401 Thereafter 5,252 Total $ 26,463 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. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. The estimated cost associated with fulfilling the Company’s warranty obligation to customers is recorded in cost of revenue. In May 2017, the Company announced a Quality Issue at one of its three contract manufacturers that affected a portion of the units manufactured by the contract manufacturer over approximately four months, which is estimated at approximately 1,300 AC400 units and 5,100 CFP units under warranty. Based on the ongoing evaluation of such units, the Company established reserves to cover anticipated costs, including cost estimates for product repairs, rework of component inventory with the contract manufacturer and rescreening costs associated with this Quality Issue. These costs are estimated based on the results of completed testing in addition to yield, fall-out rates and component part recovery cost estimates based on the Company’s historical experience. Changes in the Company’s warranty liability, which is included as a component of accrued liabilities on the consolidated balance sheets, are set forth in the table below (in thousands): Year Ended December 31, 2018 2017 2016 Warranty reserve, beginning of period $ 8,306 $ 2,158 $ 763 Provisions made to warranty reserve during the period 11,775 16,597 5,058 Charges against warranty reserve during the period (11,861 ) (10,449 ) (3,663 ) Warranty reserve, end of period $ 8,220 $ 8,306 $ 2,158 Legal Contingencies On January 21, 2016, ViaSat, Inc. filed a lawsuit in California state court, later removed to the U.S. District Court for the Southern District of California, 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 lawsuit 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. On September 28, 2018 the matter was remanded back to California state court and is currently pending a scheduling conference with the judge. The parties are in the process of briefing summary judgment motions in anticipation of a trial in California state court scheduled for June 2019. While it is not possible to predict the outcome of this matter with certainty, based on the information available to the Company today, the Company currently believes that this lawsuit will not have a material adverse effect on the Company’s business or its consolidated financial position, results of operations or cash flows. On July 28, 2017, the Company filed a lawsuit in the Commonwealth of Massachusetts Superior Court - Business Litigation Session against ViaSat asserting commercial disparagement, libel, slander of title, unfair competition, intentional interference with advantageous relations and intentional interference with contractual relations. On April 5, 2018, ViaSat responded to the Company’s action and alleged counterclaims including, among other things, breach of contract, breach of the implied covenant of good faith and fair dealing, misappropriation of trade secrets, and unfair competition. On December 13, 2018, the Massachusetts court entered an order staying the Massachusetts litigation pending resolution of the California state court action discussed in the preceding paragraph. During the stay of the Massachusetts litigation, Acacia may conduct and complete certain non-party discovery as provided in the court’s order. While it is not possible to predict the outcome of this matter with certainty, based on the information available to us today, we currently believe that this lawsuit will not have a material adverse effect on our business or our consolidated financial position, results of operations or cash flows. The California and Massachusetts lawsuits are both pending resolution, discovery is closed in the California action filed by ViaSat and ongoing in the Massachusetts action filed by the Company, subject to the conditions of the order to stay. Between August and October 2017, four purported securities class action complaints were filed in the U.S. District Court for the District of Massachusetts against the Company and certain of its executive officers, among other defendants. The complaints are captioned Tharp v. Acacia Communications, Inc., et al. , Case No. 1:17-cv-11504 (D. Mass.), filed August 14, 2017; Zhang v. Acacia Communications, Inc., et al. , Case No. 1:17-cv-11518 (D. Mass.), filed August 16, 2017; Kebler v. Acacia Communications, Inc., et al. , Case No. 1:17-cv-11695 (D. Mass.), filed September 7, 2017; and Rollhaus v. Acacia Communications, Inc., et al. , Case No. 17-cv-11988 (D. Mass.), filed October 13, 2017. In November 2017, the court consolidated these four securities class actions (under docket number 1:17-cv-11504) and appointed lead plaintiffs for the consolidated action. Lead plaintiffs filed a consolidated amended class action complaint on January 8, 2018. The amended complaint asserted claims against the Company and certain of its directors and executive officers, among other defendants, and alleged that some or all of the defendants violated Sections 11, 12(a)(2) and/or 15 of the Securities Act of 1933 and Sections 10(b) and/or 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making allegedly false and/or misleading statements regarding, among other matters, demand for our products, our financial guidance, and/or our quality control process as it relates to the Quality Issue. The amended complaint sought, among other relief, unspecified compensatory damages, rescission, attorneys’ fees, and costs. All defendants filed motions to dismiss the consolidated amended complaint on February 9, 2018. On June 15, 2018, the court granted defendants’ motions to dismiss and denied plaintiffs leave to file an amended complaint. On June 25, 2018, the court entered judgment and dismissed the case against all the defendants. No notice of appeal has been filed. In November and December 2017, three purported shareholder derivative lawsuits were filed in the United States District Court for the District of Massachusetts against certain of the Company’s directors and executive officers (Murugesan Shanmugaraj, John Gavin, Francis Murphy, Eric Swanson, Peter Chung, Benny Mikkelsen, Stan Reiss, John Ritchie, Vincent Roche, Mehrdad Givehchi, Bhupendra Shah and Christian Rasmussen) and the Company as a nominal defendant. A fourth purported shareholder derivative lawsuit was filed against the same defendants in the same court on March 13, 2018. The complaints are captioned Colgan v. Shanmugaraj et al. , Case No. 1:17-cv-12350 (D. Mass.), filed November 29, 2017; Wong v. Shanmugaraj et al. , Case No. 1:17-cv-12550 (D. Mass.), filed December 22, 2017; Dennis v. Shanmugaraj et al. , Case No. 1:17-cv-12571 (D. Mass.), filed December 28, 2017; and Farah-Franco et al. v. Shanmugaraj et al. , Case No. 1:18-cv-10465 (D. Mass), filed March 13, 2018. The court has consolidated these complaints with the class actions (under docket number 1:17-cv-11504). The court appointed lead plaintiffs for the consolidated derivative actions on April 20, 2018. On May 1, 2018, plaintiff Dennis voluntarily dismissed his case without prejudice. Lead plaintiffs filed a consolidated amended derivative complaint on May 30, 2018. The amended derivative complaint generally alleges that the individual defendants breached fiduciary duties owed to the Company by making or causing the Company to make allegedly false and/or misleading statements regarding, among other matters, demand for the Company’s products, the Company’s financial guidance, and/or the Company’s quality control process as it relates to the Quality Issue, and by selling stock in Acacia with knowledge of those allegedly false and/or misleading statements. The complaint also alleges that certain individual defendants caused the Company to issue an allegedly false and/or misleading proxy statement on or about April 6, 2017 regarding, among other matters, the reelection of certain directors. The complaint purports to assert derivative claims for violation of Section 11 of the Securities Act of 1933; Sections 10(b), 14(a), and 29(b) of the Securities Exchange Act of 1934, as well as Rule 10b-5 promulgated thereunder; breach of fiduciary duty; insider trading; waste of corporate assets; and unjust enrichment. The complaint seeks to recover on behalf of the Company for any liability it incurs as a result of the individual defendants’ alleged misconduct. The complaint also seeks declaratory, equitable and monetary relief, restitution, and attorneys’ fees and costs. On April 9, 2018, a purported shareholder filed a complaint against the Company in the Court of Chancery of the State of Delaware seeking to inspect certain of the Company’s books and records pursuant to 8 Del. C. §220 (“Section 220”). The complaint is captioned Silberberg v. Acacia Communications, Inc., Case No. 2018-0262-TMR (Del. Ch.). The Company filed its answer on April 27, 2018. The plaintiff filed a motion for judgment on the pleadings on May 1, 2018. The Company filed its cross-motion for judgment on the pleadings and opposition on May 11, 2018. The plaintiff replied on May 16, 2018. The Court held a telephonic hearing on these motions on May 29, 2018. On June 1, 2018, the Chancery Court granted the plaintiff’s motion and entered judgment for the plaintiff, and the Company thereafter produced documents to the shareholder pursuant to his Section 220 demand. On July 19, 2018, the parties reached an agreement in principle to settle the above-referenced derivative litigation and Section 220 litigation, contingent on approval by the court in the District of Massachusetts hearing the consolidated derivative actions. The Company adopted certain corporate governance changes as part of the settlement. On September 14, 2018, the parties executed their Stipulation and Agreement of Settlement, Compromise and Release, and the plaintiffs filed a motion for preliminary approval of the settlement. On September 17, 2018, the court issued an order preliminarily approving the settlement, requiring notice of the settlement be issued to our shareholders, and scheduling a hearing to consider final approval of the settlement. On November 7, 2018, the plaintiffs filed a motion for final approval of the settlement and a motion for an award of attorneys’ fees and expenses. On November 28, 2018, the defendants filed an opposition to plaintiffs’ motion for attorneys’ fees and expenses. The court held a hearing to consider final settlement approval and the plaintiffs’ request for an award of attorneys’ fees and expenses on December 19, 2018. The court approved the settlement and indicated that it would schedule a further evidentiary hearing on the motion for attorneys’ fees and expenses. The parties subsequently reached agreement on an agreed attorneys’ fee award of $0.7 million and an agreed immaterial expense award. A portion of the fee and expense awards is expected to be reimbursed to the Company by its insurance carrier. On January 23, 2019, the court issued an order granting final approval to the settlement, including the agreed upon awards of attorneys’ fees and expenses. The court entered final judgment on January 24, 2019. The Company intends to continue to engage in a vigorous defense of the ongoing litigation described above. However, the Company is unable to predict the ultimate outcome of these proceedings, and, therefore cannot estimate possible losses or ranges of losses, if any, or the materiality of any such losses. An unfavorable resolution of these matters in any reporting period may have a material adverse effect on the Company’s results of operations and cash flows for that period. In addition, the timing of the final resolution of these proceedings is uncertain. The Company will incur litigation and other expenses as a result of these proceedings, which could have a material impact on the Company’s business, consolidated financial position, results of operations and 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 its 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 or on its consolidated financial position, results of operations 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 years ended December 31, 2018 , 2017 and 2016 , the Company did not experience any losses related to these indemnification obligations. The Company does not expect significant claims related to these indemnification obligations, and consequently, has concluded that the fair value of these obligations is not material. Accordingly, as of December 31, 2018 and 2017 , no amounts have been accrued related to such indemnification provisions. Potential Payments upon Termination or Change in Control In August 2018, the compensation committee of the Company’s board of directors approved an amendment and restatement of the Acacia Communications, Inc. Severance and Change in Control Benefits Plan (as amended and restated, the “Severance Plan”), which provides severance benefits to certain of its executives, including its named executive officers, if the executive’s employment is terminated by the Company without cause or, only within 12 months following a change in control of the Company, the executive terminates employment with the Company for good reason (as each of those terms is defined in the Severance Plan). Under the Severance Plan, if the Company terminates an eligible executive’s employment without cause prior to or more than 12 months following a change in control of the Company (an “Involuntary Termination”), the executive is entitled to (i) continue receiving his or her base salary for a specified period following the date of termination (in the case of the chief executive officer, for 12 months , and, in the case of all other participants, for nine months ), (ii) company contributions to the cost of health care continuation under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), for U.S. based eligible executives, or substantially equivalent medical benefits for non-U.S. based eligible executives, for up to 12 months following the date of termination of employment (or, to the extent a non-U.S. based eligible executive is then receiving a stipend from us in lieu of benefits coverage, continued payment of such stipend for up to 12 months following the date of termination of employment), and (iii) the amount of any unpaid annual bonus determined by the board of directors to be payable to the executive for any completed bonus period which ended prior to the date of such executive’s termination. In addition, the executive’s outstanding equity awards that vest solely based on the passage of time will be accelerated and become vested to the extent the award would have vested if the executive had remained employed through a specified period following the date of termination (in the case of the chief executive officer, for 12 months , and, in the case of all other participants, for nine months ). The vesting of outstanding performance-based equity awards in connection with an Involuntary Termination shall be dictated by the terms of the applicable award agreements. The Severance Plan also provides that, if, within 12 months following a change in control of the Company, the Company terminates an eligible executive’s employment without cause or such executive terminates his or her employment with the Company for good reason (a “Change in Control Termination”), the executive is entitled to (i) a single lump-sum payment equal to a multiple of his or her annual base salary (in the case of the chief executive officer, 2 x and, in the case of all other participants, 1 x), (ii) a single lump sum payment in an amount equal to a multiple of his or her target annual bonus for the year in which the termination of employment occurs (in the case of the chief executive officer, 1.5 x and, in the case of all other participants, 1 x), (iii) company contributions to the cost of health care continuation under COBRA, for U.S. based eligible executives, or substantially equivalent medical benefits for non-U.S. based eligible executives, for up to 12 months following the date of termination of employment (or, to the extent a non-U.S. based eligible executive is then receiving a stipend from us in lieu of benefits coverage, continued payment of such stipend for up to 12 months following the date of termination of employment), and (iv) the amount of any unpaid annual bonus determined by the Company’s board of directors to be payable to the executive for any completed bonus period which ended prior to the date of such executive’s termination. In addition, all of the executive’s outstanding unvested time-based equity awards will immediately vest in full on the date of such termination. The vesting of outstanding performance-based equity awards in connection with a Change in Control Termination shall be dictated by the terms of the applicable award agreements. In addition, the Severance Plan provides that, in the event of a termination due to the death or disability of an eligible executive (a “Death or Disability Termination”), whether or not prior to or following a change in control of the Company, such executive or his or her estate will be entitled to (i) the Involuntary Termination or Change in Control Termination severance benefits, as applicable, set forth in the Severance Plan, (ii) the vesting in full of all of the executive’s outstanding equity awards that vest solely based on the passage of time as of the date of such termination, and (iii) if in connection with an Involuntary Termination, a single lump sum payment in an amount equal to a pro rata portion of his or her target annual bonus for the year in which the termination of employment occurs. The vesting of outstanding performance-based equity awards in connection with a Death or Disability Termination shall be dictated by the terms of the applicable award agreements. All payments and benefits provided under the Severance Plan are contingent upon the execution and effectiveness of a release of claims by the executive, or the executive’s personal representative or estate, in favor of the Company and continued compliance with any proprietary information and inventions, nondisclosure, non-competition, non-solicitation (or similar) agreement to which the Company and the executive are party. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Expense The components of (loss) income before (benefit) provision for income taxes are as follows (in thousands): Year Ended December 31, 2018 2017 2016 United States $ (35,832 ) $ (30,030 ) $ 4,305 Foreign 35,428 70,333 110,316 Total $ (404 ) $ 40,303 $ 114,621 The components of the (benefit) provision for income taxes are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current income tax (benefit) provision Federal $ (9,417 ) $ 18,174 $ (8,090 ) State 23 52 53 Foreign 921 1,849 3,414 Total current income tax (benefit) provision $ (8,473 ) $ 20,075 $ (4,623 ) Deferred income tax benefit Federal 2,944 (14,108 ) (5,797 ) State 480 (4,083 ) (6,168 ) Foreign (271 ) (89 ) (368 ) Total deferred income tax benefit 3,153 (18,280 ) (12,333 ) Total income tax (benefit) provision $ (5,320 ) $ 1,795 $ (16,956 ) On December 22, 2017, the Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. Additionally, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. To the extent that a company’s accounting for certain income tax effects of the Tax Act was incomplete but was able to determine a reasonable estimate, it was required to record a provisional estimate in the financial statements. The guidance provided for a provisional one-year measurement period for entities to finalize their accounting for certain tax effects related to the Tax Act. In accordance with the Tax Act and SAB 118, the Company recorded $31.4 million as a provisional income tax expense in the fourth quarter of 2017, the period in which the legislation was enacted. The total expense included $23.3 million related to the transition tax and $7.3 million related to the remeasurement of certain deferred tax assets and liabilities. In finalizing its analysis, the Company recorded an immaterial amount of adjustments to the original provisional amounts. As of December 31, 2018 , the Company has completed the analysis based on legislative updates relating to the Tax Act currently available. The Tax Act created a provision known as global intangible low-tax income (“GILTI”) that imposes a U.S. tax on certain earnings of foreign subsidiaries that are subject to foreign tax below a certain threshold. The Company has made an accounting policy election to reflect GILTI taxes, if any, as a current income tax expense in the period incurred. As a result of the concept of “deemed distributions” under the Tax Act, the impact of GILTI on the Company’s future foreign earnings and lack of certain foreign governments’ withholding tax imposed on dividends, the Company no longer takes the position that most of its foreign earnings are permanently reinvested. For certain foreign operating subsidiaries, the Company continues to take the position that earnings are permanently reinvested. The Company recorded a provisional tax expense of $0.9 million for state taxes related to the repatriation of earnings which are no longer considered permanently reinvested and an immaterial amount of adjustments to the original provisional amounts were made after the Company finalized its analysis. As of December 31, 2018 , there was $8.7 million of cumulative foreign earnings for which state income taxes have not been provided. Deferred Tax Assets and Liabilities Significant components of the Company’s net deferred tax assets at December 31, 2018 and 2017 , are as follows (in thousands): December 31, 2018 2017 Deferred tax assets: Accrued expenses $ 3,517 $ 4,129 Net operating loss carryforwards 18,641 12,962 Credit carryforwards 21,568 23,249 Stock-based compensation 3,561 3,360 Depreciation — 171 Other 248 332 Total deferred tax assets $ 47,535 $ 44,203 Deferred tax liabilities: Depreciation (1,567 ) — Other (868 ) (886 ) Total deferred tax liabilities (2,435 ) (886 ) Valuation allowance (6,383 ) (1,416 ) Net deferred tax assets $ 38,717 $ 41,901 The Company accounts for deferred taxes under ASC Topic 740, Income Taxes (“ASC 740”) which involves weighing positive and negative evidence concerning the realizability of the Company’s deferred tax assets in each jurisdiction. The Company evaluated its ability to realize the benefit of its net deferred tax assets and weighed all available positive and negative evidence both objective and subjective in nature. In determining the need for a valuation allowance, the weight given to positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. Consideration was given to negative evidence such as the duration and severity of losses, as well as the expiration and limitation of tax attributes in various jurisdictions. As of December 31, 2018, positive evidence included consolidated three -year cumulative profitability of $154.5 million ( $(61.6) million for the United States only). Additionally, after implementing a corporate restructuring of its international business in 2015 and determining that sufficient forecasted taxable income of appropriate character is expected to continue in future years, the Company believes the weight of the objectively verifiable positive evidence coupled with the subjective positive evidence from forecasted operating plans is sufficient to overcome the weight of any negative evidence, especially in the U.S. where the new GILTI provisions from the Tax Act are expected to create significant amounts of U.S. taxable income in future years. During the year ended December 31, 2018, the Company concluded it is more likely than not that it will realize the benefit of $38.7 million of the Company’s net deferred tax assets. As a result, the Company continues to maintain a partial valuation allowance of $6.4 million against its U.S. deferred tax assets, which include federal net operating loss and credit carryforwards limited under IRC Section 382 as well as state and foreign net operating losses and credits accumulated in jurisdictions in which management does not anticipate sufficient taxable income to utilize the credits. Management will continue to assess the applicability of a valuation allowance at each reporting period. As of December 31, 2017, positive evidence included consolidated three -year cumulative profitability of $194.7 million ( $13.0 million for the United States only). Additionally, the Company’s objectively verifiable positive evidence coupled with the subjective positive evidence from forecasted operating plans was sufficient to overcome the weight of any negative evidence. During the year ended December 31, 2017, the Company concluded it is more likely than not that it will realize the benefit of $41.9 million of the Company’s net deferred tax assets. As a result, the Company maintained a partial valuation allowance of $1.4 million against its U.S. deferred tax assets, which included federal net operating loss and credit carryforwards limited under IRC Section 382 as well as state credits accumulated in jurisdictions in which management does not anticipate sufficient taxable income to utilize the credits. As of December 31, 2016, positive evidence included consolidated three -year cumulative profitability of $170.9 million ( three -year cumulative loss of $59.5 million for the United States only). Additionally, the Company’s objectively verifiable positive evidence coupled with the subjective positive evidence from forecasted operating plans was sufficient to overcome the weight of any negative evidence. During the year ended December 31, 2016 , the Company concluded it is more likely than not that it will realize the benefit of $23.5 million of the Company’s net deferred tax assets. As a result, the Company maintained a partial valuation allowance of $0.7 million against its U.S. deferred tax assets, which included federal net operating loss and credit carryforwards limited under IRC Section 382 as well as state credits accumulated in jurisdictions in which management does not anticipate sufficient taxable income to utilize the credits. The table below summarizes changes in the deferred tax asset valuation allowance (in thousands): Year Ended December 31, Beginning Balance Additions Reductions Ending Balance 2016 $ 554 180 — $ 734 2017 $ 734 682 — $ 1,416 2018 $ 1,416 4,967 — $ 6,383 Tax Rate A reconciliation of the (benefit) provision for income taxes computed at the statutory federal income tax rate to the (benefit) provision for income taxes as reflected in the consolidated financial statements is as follows: Year Ended December 31, 2018 2017 2016 Provision for income taxes at statutory rate 21.0 % 35.0 % 35.0 % Increases (decreases) resulting from: Federal tax credits 1,304.6 (15.3 ) (4.1 ) Change in valuation allowance (1,230.7 ) 1.7 0.2 State tax expense, net of federal benefit 1,058.0 (8.0 ) (3.8 ) Meals and entertainment (24.0 ) 0.4 0.1 Stock-based compensation expense 384.1 (32.9 ) (18.0 ) Change in fair value of preferred stock warrants — — 1.0 Change in uncertain tax positions (116.5 ) 3.5 1.9 Change in federal rate due to tax reform — 18.0 — Transition tax (9.6 ) 57.7 — APB23 state liability (2.0 ) — — Foreign rate differential 1,598.6 (55.5 ) (31.8 ) Foreign rate inclusion (1,990.5 ) 2.9 4.5 Other 323.8 (3.0 ) 0.2 Effective income tax rate 1,316.8 % 4.5 % (14.8 )% For the year ended December 31, 2018 , the Company recorded an income tax benefit of $5.3 million , representing an effective tax rate of 1,316.8% . The effective tax rate differs from the U.S. statutory tax rate primarily as a result of the jurisdictional mix of earnings and losses generated because of state income taxes and certain permanent expenses that are not deductible, stock-based compensation excess tax benefits, federal and state research and development credits and the impact of the Tax Act. Tax Attributes As of December 31, 2018 , the Company had $61.9 million and $87.4 million of federal and state net operating loss carryforwards, respectively, that expire at various dates through 2038 . In addition, federal net operating loss carryforwards generated after December 31, 2017 are subject to carryforward indefinitely. As of December 31, 2018 , the Company had $10.6 million and $15.3 million of federal and state research and development and other credit carryforwards, respectively, that expire at various dates through 2038 . Realization of the future tax benefits is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carryforward period. Utilization of some of the net operating loss carryforwards is subject to an annual limitation due to the ownership percentage change limitations provided by Section 382 of the Internal Revenue Code of 1986 and similar state provisions. The annual limitations will result in the expiration of $0.8 million of the federal net operating loss carryforwards before utilization. The Company performed an Internal Revenue Code Section 382 study and determined that utilization of its annual net operating losses for periods prior to 2014 are limited to approximately $4.8 million per year through 2017, $2.3 million in 2018 and $1.4 million in years thereafter in connection with changes in control in 2009 and 2013. The Company’s operating loss carryforwards for years after 2013 are not limited. Accounting for Uncertainty in Income Taxes The Company recognizes, in its consolidated financial statements, the effect of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The aggregate changes in gross unrecognized tax benefits during the years ended December 31, 2018 and 2017 were as follows (in thousands): Balance at December 31, 2016 $ 3,078 Increases for the tax positions taken during the year 1,426 Balance at December 31, 2017 $ 4,504 Increases for the tax positions taken during the year 470 Balance at December 31, 2018 $ 4,974 The Company had $5.0 million and $4.5 million of uncertain tax positions during the years ended December 31, 2018 and 2017 , respectively. Included in the balance of unrecognized tax benefits as of December 31, 2018 and 2017 are $3.0 million and $2.3 million of tax benefits, respectively, that, if recognized, would impact the effective tax rate. There are no material amounts of interest or penalties recognized in the consolidated income statement or accrued on the consolidated balance sheet for any period presented. The Company does not expect any material changes in these uncertain tax benefits within the next 12 months. The Company is subject to taxation in the United States and various state and foreign jurisdictions. In the normal course of business, the Company is potentially subject to examination by tax authorities throughout the United States and other foreign jurisdictions in which the Company operates. All tax years since inception remain open to examination by major taxing jurisdictions to which the Company is subject, as carryforward attributes generated in prior period tax years may still be adjusted upon examination by the Internal Revenue Service or state tax authorities if they have or will be used in a future period. The Company also files foreign tax returns in the foreign jurisdictions in which it operates when required. The Company is currently being audited by the Internal Revenue Service for tax years 2014 through 2017. There are currently no state or foreign examinations in process. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | CONCENTRATIONS OF RISK Customer Concentration Customers with revenue equal to or greater than 10% of total revenue for the years ended December 31, 2018 , 2017 and 2016 were as follows: Year Ended December 31, 2018 2017 2016 A (1) 20 % 30 % 32 % B 15 % 15 % 26 % C 17 % (2) 11 % * E 14 % * * __________________________________________________________________________________________ * Less than 10% of revenue in the period indicated (1) Customer A was subject to U.S. Department of Commerce restrictions that prevented sales to this customer from April 15, 2018 through July 13, 2018. (2) Customer C was acquired by one of the Company’s other customers on October 1, 2018. The figure in the table above takes into account all revenue for the combined customer for the year ended December 31, 2018 . Prior to the acquisition, Customer C accounted for 17% of total revenue for the nine-month period ended September 30, 2018. Customers that accounted for equal to or greater than 10% of accounts receivable at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 A 30 % 15 % B 13 % 10 % C * 19 % D 10 % * F 17 % * __________________________________________________________________________________________ * Less than 10% of accounts receivable in the period indicated Supplier Concentration The Company’s most significant vendor spending is related to purchases from contract manufacturers and component suppliers located in Japan, China, Thailand and the United States, from which the Company purchases a substantial portion of its inventory. For the years ended December 31, 2018 , 2017 and 2016 , total purchases from each of the suppliers were as follows: Year Ended December 31, 2018 2017 2016 W * * 11 % X 18 % 19 % 37 % Y 53 % 49 % 24 % Z * 10 % 18 % __________________________________________________________________________________________ * Less than 10% of total purchases in the period indicated The Company also outsources certain engineering projects to vendors located throughout the world. During the years ended December 31, 2017 and 2016 , the Company incurred 18% and 16% of its total research and development costs with one vendor. |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLAN | RETIREMENT PLAN The Company is the sponsor of a defined contribution savings plan for all qualified employees under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan allows participants to contribute a portion of their compensation on a pre-tax basis up to an amount not to exceed the annual statutory limit applicable to each individual participant. The Company is permitted to make discretionary matching contributions to the 401(k) Plan. Total matching contributions during the years ended December 31, 2018 , 2017 and 2016 amounted to $1.6 million , $1.3 million and $0.8 million , respectively. |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES One of the Company’s directors, Vincent Roche, is also the President and Chief Executive Officer and a member of the board of directors of Analog Devices, Inc. (“ADI”). 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 the Company’s manufactured products. Based on shipments during the respective periods, the Company’s contract manufacturers made purchases from ADI of approximately $3.8 million , $4.5 million , and $4.9 million , during the years ended December 31, 2018 , 2017 and 2016 , respectively. In 2018, the Company entered into a product development agreement with ADI related to the development of integrated circuits for $1.5 million , of which $0.8 million of costs were incurred during the year ended December 31, 2018 . One of the Company’s directors, Peter Y. Chung, is also a member of the board of directors of MACOM Technology Solutions, Inc. (“MACOM”). The Company, through its contract manufacturers, periodically purchases supplies from MACOM. These purchased supplies are used as content in certain of the Company’s manufactured products. Based on shipments, the Company’s contract manufacturers made purchases from MACOM of approximately $0.3 million and $0.8 million during the years ended December 31, 2018 and 2017 . The amount of purchases made by the Company from MACOM were immaterial in the year ended December 31, 2016 . |
UNAUDITED QUARTERLY FINANCIAL I
UNAUDITED QUARTERLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED QUARTERLY FINANCIAL INFORMATION | UNAUDITED QUARTERLY FINANCIAL INFORMATION 2018 First Second Third Fourth (in thousands) Revenue $ 72,941 $ 65,003 $ 94,814 $ 107,133 Cost of revenue 48,870 39,798 49,981 54,122 Gross profit 24,071 25,205 44,833 53,011 Operating expenses: Research and development 24,445 24,340 24,696 28,925 Sales, general and administrative 14,288 12,984 12,134 12,458 Total operating expenses 38,733 37,324 36,830 41,383 (Loss) income from operations (14,662 ) (12,119 ) 8,003 11,628 Total other income, net 1,283 1,300 2,011 2,152 (Loss) income before (benefit) provision for income taxes (13,379 ) (10,819 ) 10,014 13,780 (Benefit) provision for income taxes (4,301 ) (7,574 ) 1,863 4,692 Net (loss) income $ (9,078 ) $ (3,245 ) $ 8,151 $ 9,088 Net (loss) income per share: Basic $ (0.23 ) $ (0.08 ) $ 0.20 $ 0.23 Diluted $ (0.23 ) $ (0.08 ) $ 0.19 $ 0.22 2017 First Second Third Fourth (in thousands) Revenue $ 114,667 $ 78,898 $ 104,998 $ 86,603 Cost of revenue 58,367 53,516 58,856 46,587 Gross profit 56,300 25,382 46,142 40,016 Operating expenses: Research and development 17,728 22,734 27,135 24,430 Sales, general and administrative 8,691 9,368 10,105 10,643 Gain on disposal of property and equipment — (47 ) — — Total operating expenses 26,419 32,055 37,240 35,073 Income (loss) from operations 29,881 (6,673 ) 8,902 4,943 Total other income, net 407 826 969 1,048 Income (loss) before (benefit) provision for income taxes 30,288 (5,847 ) 9,871 5,991 (Benefit) provision for income taxes (5,421 ) (10,511 ) (8,628 ) 26,355 Net income (loss) $ 35,709 $ 4,664 $ 18,499 $ (20,364 ) Net income (loss) per share: Basic $ 0.93 $ 0.12 $ 0.47 $ (0.52 ) Diluted $ 0.86 $ 0.11 $ 0.44 $ (0.52 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 1, 2019 , shares issuable under the Company’s 2016 Equity Incentive Plan increased by 1,640,964 shares in accordance with the automatic annual increase provision of such plan. Effective February 14, 2019, the Company approved awards of time-based RSUs and performance-based RSUs to certain of the Company’s executive officers, including 89,420 time-based RSUs and up to a maximum of 88,084 performance-based RSUs, under the Company’s 2016 Plan. The time-based RSUs vest over a period of four years, subject to each officer’s continued provision of services to the Company through the applicable vesting dates. The performance-based RSUs vest subject to achievement of a performance objective at the end of a three -year period, as determined and certified by the Company’s Compensation Committee. The performance objective is based on the Company’s percentile achievement of relative total shareholder returns against an external comparator group over such period. The performance-based RSUs are further subject to each officer’s continued provision of services to the Company through the applicable vesting dates, except in the case of death or disability where vesting will be pro-rated for time worked. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of Acacia Communications, Inc., and its Subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive loss. Other comprehensive loss refers to losses that are recorded as an element of stockholders’ equity but are excluded from net income. The Company’s other comprehensive loss consists of net unrealized gains and losses on available-for-sale securities, net of the related tax effect. |
Revenue Recognition | Revenue Recognition and Deferred Revenue The Company adopted Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”) issued by the Financial Accounting Standards Board (“FASB”) effective January 1, 2018 using the modified retrospective method. As a result, the Company is required to disclose the accounting policies in effect prior to January 1, 2018, as well as the policies it has applied starting January 1, 2018. Periods prior to January 1, 2018 The Company derives its revenue from the sale of its products. The Company recognized revenue when persuasive evidence of an arrangement existed, delivery had occurred, the fee was fixed or determinable and collectability of the related receivable was reasonably assured. The Company considered delivery of its products to have occurred once title and risk of loss had been transferred. The Company’s products consist of hardware and software that function together to deliver the products’ essential functionality. The Company does not sell its software on a standalone basis. At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses associated with sales, recorded as a component of cost of revenue. The Company’s customers generally do not have return rights. A limited number of revenue arrangements with the Company’s customers included more than one element and required the application of ASC 605-25, Revenue Recognition—Multiple Element Arrangements. Arrangement consideration was allocated to each element with standalone value based on the relative selling prices of all of the elements in the arrangement using the fair value hierarchy. The Company determined the relative selling price of elements based on prices charged for standalone products, when sufficiently concentrated, and third-party evidence of similar elements, or, in the absence of these sources of evidence, based on management’s best estimate of selling price. Revenue recognized from multiple-element arrangements accounted for less than 1% of the Company’s total revenue during the years ended December 31, 2017 and 2016 . Deferred revenue represented either advance payments from customers or billings to customers for which the revenue recognition criteria had not been met. Deferred product costs represented products that had been billed to customers, for which the revenue associated with the arrangement had been deferred as a result of not meeting the revenue recognition criteria. The Company deferred the product costs until recognition of the related revenue occurred. Periods commencing January 1, 2018 The Company generates all of its revenue from contracts with customers. The Company considers customer purchase orders, which in many cases are governed by master purchasing agreements, to be contracts with customers. The Company’s contracts with customers are generally for product only, and do not include other performance obligations such as services, extended warranties or other material rights. As part of its assessment of each contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the price stated on the purchase order is typically fixed and represents the net consideration to which the Company expects to be entitled, and therefore there is no variable consideration. As the Company’s standard payment terms are less than one year, the Company has elected, as a practical expedient, to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable source that depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs upon shipment from the Company’s manufacturing site or delivery to the customer’s named location. In determining whether control has transferred, the Company considers if there is a present right to payment from the customer and when physical possession, legal title and risks and rewards of ownership have transferred to the customer. The Company also considered certain customer contracts that include acceptance clauses, but has concluded that delivery to the customer’s named location is the point at which the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the asset, and therefore the acceptance is considered a formality that does not impact the timing of revenue recognition. At times, the Company receives orders for products that may be delivered over multiple dates that may extend across reporting periods. The Company invoices for each delivery upon shipment and recognizes revenues for each distinct product delivered, assuming transfer of control has occurred. Generally, scheduled delivery dates are within one year, and the Company has elected to use the optional exemption whereby revenues allocated to partially completed contracts with an expected duration of one year or less are not disclosed. The transaction price related to contracts with unsatisfied performance obligations with a duration of more than one year as of December 31, 2018 was $2.1 million . The Company generally provides an assurance warranty that its products will substantially conform to the agreed-upon specifications for 12 to 24 months from the date of shipment. The Company’s liability is limited to the cost of repair or replacement of the defective part. The Company does not consider activities related to such warranties to be a separate performance obligation. The terms and conditions of sale generally do not allow for refunds or product returns other than for warranty repairs. The Company has a limited number of customer contracts that provide for the performance of services or include multiple performance obligations. Once the Company determines the performance obligations, the Company determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. The Company then allocates the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method or using the variable consideration allocation exception if the required criteria are met. The corresponding revenues are recognized as the related performance obligations are satisfied. A receivable is recognized in the period the Company ships the product. Payment terms on invoiced amounts are based on contractual terms with each customer. In some cases, if control of the product has not yet transferred to the customer or the timing of the payments made by the customer precedes the Company’s fulfillment of the performance obligation, the Company recognizes a contract liability that is classified as “deferred revenue.” Deferred product costs represent products that have been billed to customers, for which the revenue associated with the arrangement has been deferred as a result of not meeting the revenue recognition criteria. The Company defers the product costs until recognition of the related revenue occurs. The Company has concluded that none of the costs it has incurred to obtain and fulfill its ASC 606 contracts meet the capitalization criteria, and as such, there are no costs deferred and recognized as assets on the consolidated balance sheet at December 31, 2018 . Cost of Revenue The Company records all costs associated with its product sales in cost of revenue. These costs include the cost of materials, contract manufacturing fees, shipping costs and quality assurance. Cost of revenue also includes indirect costs such as warranty, excess and obsolete inventory charges, general overhead costs and depreciation. |
Financial Instruments | Financial Instruments Cash equivalents include all highly liquid investments with an original maturity of three months or less upon acquisition. Cash equivalents may consist of bank deposit accounts, money market funds, repurchase agreements, commercial paper, certificates of deposit, asset-backed securities and corporate debt securities. 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 investments in marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. The Company’s investments in marketable debt securities are carried at fair value, with unrealized gains and losses, net of taxes, reported as a component of accumulated other comprehensive loss in stockholders’ equity, with the exception of unrealized losses believed to be other-than-temporary which are reported in earnings in the current period. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. The majority of the Company’s cash and cash equivalents are at two financial institutions and the balances often exceed federally insured limits. Management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially creditworthy and, accordingly, minimal credit risk exists with respect to those balances. Marketable securities consist of investments in U.S. Treasury bonds, commercial paper, certificates of deposit, asset-backed securities and corporate debt securities. The main objective of the Company’s current investment policy is to preserve capital and maintain liquidity. The Company seeks to limit the amount of investments in any single issuer. As a result, the Company believes that, as of December 31, 2018 and 2017 , its concentration of credit risk related to marketable securities was not significant. To minimize credit risk related to accounts receivable, ongoing credit evaluations of customers’ financial condition are performed and the Company maintains allowances for potential credit losses as needed. |
Inventory | Inventory Inventory, which consists of raw materials, work-in-process, and finished goods, is stated at the lower of cost or net realizable value, as determined on a specific cost basis and using the first-in, first-out convention. The Company reduces the carrying value of inventory to its estimated net realizable value for those items that are potentially excess, obsolete or slow moving based on changes in customer demand, technology developments or other economic factors. Such reductions in the carrying value of inventory are recorded within cost of revenue in the consolidated income statements. Any excess or obsolete inventory write-downs taken establish a new cost basis for the underlying inventory and cannot be reversed if there are subsequent increases in the Company’s demand forecast. If the Company is later able to sell such inventory, any related reserves would be reversed in the period of sale. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. The estimated useful lives of the Company’s property and equipment are as follows: Engineering laboratory equipment 3-7 years Computer software 1-3 years Computer equipment 3 years Furniture and fixtures 3-7 years Leasehold improvements Lesser of lease term or life of asset When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are derecognized from the accounts and the resulting gain or loss is reflected in the consolidated income statements. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. When such events occur, the Company compares the carrying amounts of the assets to their estimated undiscounted future cash flows. If this comparison indicates that there is an impairment, the amount of the impairment is calculated as the difference between the carrying value and the fair value. |
Warranties | 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. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. The estimated cost associated with fulfilling the Company’s warranty obligation to customers is recorded in cost of revenue. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. |
Research and Development Costs | Research and Development Costs The Company expenses all research and development costs as incurred. Research and development costs consist primarily of salary and benefit expenses, including stock-based compensation, for employees, costs for contractors engaged in research, design and development activities, costs incurred directly and with support from external vendors, such as outsourced development costs, as well as support costs for prototypes, depreciation, purchased intellectual property, facilities and travel. |
Stock-based Compensation | Stock-Based Compensation The Company accounts for share-based payment awards granted to employees at fair value, which is measured using the fair value of the Company’s common stock on the grant date for time-vested restricted stock units (“RSUs”). Other input assumptions are used to determine the valuation of performance- or market-based RSU awards, as well as in the Black-Scholes option-pricing model for stock option awards and employee stock purchase rights. The measurement date for the fair value of employee awards is the date of grant. For all time-vested awards, stock-based compensation costs are recognized as expense on a ratable basis over the requisite service period, which is generally the vesting period. For awards with market and/or performance conditions, the Company recognizes stock-based compensation expense using the accelerated attribution method. |
Changes in Fair Value of Redeemable Convertible Preferred Stock Warrant Liability | Changes in Fair Value of Redeemable Convertible Preferred Stock Warrant Liability The Company’s redeemable convertible preferred stock warrants which existed prior to the Company’s IPO required liability classification. At initial recognition, the warrants were recorded at their estimated fair value and subject to remeasurement at each balance sheet date, with changes in fair value recognized as a component of total other income (expense), net. In connection with the Company’s IPO, the warrants converted to common stock warrants and accordingly, the Company remeasured the liability at the time of the IPO and then reclassified the redeemable convertible preferred stock warrant liability to additional paid-in capital. See Note 9 for additional information. |
Foreign Currency Transactions | Foreign Currency Transactions The functional currency of the Company’s Subsidiaries is the U.S. dollar. All monetary assets and liabilities denominated in a foreign currency are revalued into U.S. dollars at the exchange rate on the consolidated balance sheet date. When transactions are required to be paid in the local currency of any Subsidiary, any resulting foreign currency transaction gain or loss is recorded as a component of other expense, net, in the consolidated income statements. To date, foreign currency transaction gain or loss associated with the Company’s Subsidiaries has not been significant. |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements and tax returns. Deferred tax assets and liabilities are determined based upon the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and for loss and credit carryforwards, using enacted tax rates expected to be in effect in the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is not more likely than not that these assets will be realized. The Company accrues liabilities for potential payments of tax to various tax authorities related to uncertain tax positions. Liabilities are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential uncertainties related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of the provision for income taxes, if applicable. As of December 31, 2018 and 2017 , the Company identified $5.0 million and $4.5 million of gross uncertain tax positions, respectively. Included in those balances as of December 31, 2018 and 2017 are $3.0 million and $2.3 million of tax benefits, respectively, that, if recognized, would impact the effective tax rate. These have been accrued for as long-term liabilities on the Company’s consolidated balance sheets. |
Operating Segments | Operating Segments 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 chief executive officer, in deciding how to allocate resources and assess performance. The Company’s CODM evaluates the Company’s financial information for the purpose of allocating resources and assessing the performance of these resources on a consolidated basis. |
Net Income per Share Attributable to Common Stockholders | Net Income per Share Attributable to Common Stockholders Up to and including the year ended December 31, 2016, the year in which the IPO occurred, 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 considered its redeemable convertible preferred stock to be participating securities. In the event a cash dividend was paid on common stock, the holders of redeemable convertible preferred stock were 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 redeemable convertible preferred stock did 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 included contractual participation rights in undistributed earnings, were excluded from the computation of basic and diluted net income per share attributable to common stockholders. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, or ASC 606, which supersedes the revenue recognition requirements in Accounting Standard Codification 605, Revenue Recognition (“ASC 605”) and affects any entity that enters into contracts with customers to transfer goods and services. On January 1, 2018, the Company adopted ASC 606 and all related amendments for all contracts not completed as of the adoption date using the modified retrospective method. The Company recognized the $0.2 million cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. See Note 4 for further disclosures and detail regarding revenue. As the impact of ASC 606 is not material to the Company, there is no pro-forma disclosure presented as of and for the year ended December 31, 2018 . In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in ASU 2016-16 are effective for fiscal years beginning after December 15, 2017, and were adopted by the Company in the first quarter of 2018. The amendments in ASU 2016-16 were applied using a modified retrospective approach. As the Company has not had any intra-entity transfers of assets in such period other than inventory, there has been no impact from the adoption of this standard. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows - Restricted Cash (“ASU 2016-18”). The amendments in ASU 2016-18 require that the statement of cash flows explain the change in total cash, cash equivalents and restricted cash. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted the amendments in ASU 2016-18 in the first quarter of 2018 using a retrospective transition method. Other than the revised statement of cash flows presentation of restricted cash in the prior periods presented, which were immaterial, the adoption of ASU 2016-18 did not have a material impact on the Company’s consolidated financial statements. There is no impact to the cash flow statement for the year ended December 31, 2018 as there was no restricted cash balance as of the beginning or end of the period. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). ASU 2018-02 allows an entity to reclassify stranded income tax effects resulting from the U.S. Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive loss to retained earnings. The amendments in ASU 2018-02 are effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted and applied the ASU 2018-02 amendments in the second quarter of 2018. The adoption of the ASU 2018-02 amendments resulted in a $0.1 million cumulative-effect adjustment as of April 1, 2018, the first day of the Company’s second quarter of fiscal year 2018, between accumulated other comprehensive loss and retained earnings for the amount of the stranded tax effects. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in ASU 2018-15 are effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company adopted and applied the ASU 2018-15 amendments on a prospective basis as of July 1, 2018, the first day of the Company’s third quarter of fiscal year 2018. The adoption of the ASU 2018-15 amendments resulted in approximately $0.2 million of implementation costs incurred in a hosting arrangement that is a service contract being capitalized as of December 31, 2018 . 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 (“ASU 2016-13”). ASU 2016-13 is intended to provide more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The main provisions include presenting financial assets measured at amortized cost at the amount expected to be collected, which is net of an allowance for credit losses, and recording credit losses related to available-for-sale securities through an allowance for credit losses. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, and must be applied using a modified retrospective approach with earlier adoption permitted for fiscal years beginning after December 15, 2018. The Company does not expect the adoption of this amendment to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 will require lessees to recognize a right-of-use asset and lease liability on the balance sheet for virtually all leases. For the income statement, ASU 2016-02 retains a dual model requiring leases to be classified as either operating or financing leases. Operating leases will result in straight-line expense, and financing leases will have a front-loaded expense pattern with an interest expense component. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, and must be applied using a modified retrospective approach with earlier adoption permitted. The Company adopted this guidance on January 1, 2019, and expects to recognize a lease liability estimated between $14.8 million and $16.8 million , and a related right-of-use asset estimated between $20.3 million and $22.3 million on its consolidated balance sheet, respectively, with the difference attributable to prepaid and accrued rent payments. These adjustments will not have a material impact on the Company’s consolidated income statement. The Company is continuing to finalize the impacts of the new standard, including the discount rate to be applied in these valuations and increased leasing disclosures, as well as policy and process changes to support the new standard. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | The estimated useful lives of the Company’s property and equipment are as follows: Engineering laboratory equipment 3-7 years Computer software 1-3 years Computer equipment 3 years Furniture and fixtures 3-7 years Leasehold improvements Lesser of lease term or life of asset |
Summary of Revenue by Geographic Region | Revenue by geographic country, based on ship-to destinations, which in certain instances may be the location of a contract manufacturer rather than the Company’s end customer, was as follows (in thousands): Year Ended December 31, 2018 2017 2016 United States $ 56,839 $ 60,723 $ 87,678 China 98,906 148,431 194,917 Germany 58,711 57,051 114,678 Thailand 68,217 48,016 33,136 Other 57,218 70,945 48,003 Total revenue $ 339,891 $ 385,166 $ 478,412 |
Summary of Total Long-Lived Assets by Geographic Region | Total long-lived assets by geographic country consisted of the following as of December 31, 2018 and 2017 (in thousands): December 31, 2018 2017 United States $ 18,123 $ 19,065 Thailand 4,147 7,065 China 1,703 1,165 Other 2,670 880 Total long-lived assets $ 26,643 $ 28,175 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Deferred Revenue and Accounts Receivable | The opening and closing balances of the Company’s deferred revenue and accounts receivable are as follows (in thousands): Balance at Beginning of Period (1/1/18) Increase Balance at End of Period Year Ended December 31, 2018 Accounts Receivable $ 86,602 $ 4,229 $ 90,831 Deferred Revenue (Current) $ 197 $ 4,904 $ 5,101 Deferred Revenue (Non-current) $ 254 $ 3,453 $ 3,707 |
Schedule of Disaggregation of Revenue | Disaggregation of Revenue The following table provides information about disaggregated revenue based on product type. Further disaggregation of revenue by geographic country can be found in Note 3. Year Ended As a % of December 31, 2018 Total Revenue (dollars in thousands) Embedded Modules $ 77,286 23 % Pluggable Modules 189,533 56 % Semiconductors 73,072 21 % Total revenue $ 339,891 100 % |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Cash, Cash Equivalents and Short- and Long-term Marketable Securities | The following tables set forth the Company’s cash, cash equivalents and short- and long-term marketable securities as of December 31, 2018 and 2017 (in thousands): December 31, 2018 Amortized Cost Gross Unrealized Estimated Fair Value Cash and Cash Marketable Gains Losses Less than One Year Greater than One Year Cash $ 49,650 $ — $ — $ — $ 49,650 $ 49,650 $ — Money market funds 1,563 — — — 1,563 1,563 — U.S. treasury bonds 40,367 — (9 ) (3 ) 40,355 — 40,355 Commercial paper 60,435 — (13 ) — 60,422 6,668 53,754 Certificates of deposit 36,839 13 (12 ) — 36,840 — 36,840 Asset-backed securities 47,798 1 (63 ) (22 ) 47,714 — 47,714 Corporate debt securities 163,654 9 (239 ) (100 ) 163,324 2,563 160,761 Total $ 400,306 $ 23 $ (336 ) $ (125 ) $ 399,868 $ 60,444 $ 339,424 December 31, 2017 Amortized Cost Gross Unrealized Estimated Fair Value Cash and Cash Marketable Gains Losses (1) Cash $ 43,223 $ — $ — $ 43,223 $ 43,223 $ — Money market funds 11,070 — — 11,070 11,070 — Repurchase agreements 12,500 — — 12,500 12,500 — U.S. treasury bonds 26,316 — (80 ) 26,236 — 26,236 Commercial paper 60,623 — (9 ) 60,614 — 60,614 Certificates of deposit 34,993 6 (33 ) 34,966 — 34,966 Asset-backed securities 33,374 1 (53 ) 33,322 702 32,620 Corporate debt securities 142,960 9 (290 ) 142,679 — 142,679 Total $ 365,059 $ 16 $ (465 ) $ 364,610 $ 67,495 $ 297,115 (1) Losses represent marketable securities that were in loss positions for less than one year. |
Proceeds from Sales and Maturities of Marketable Securities | The proceeds from the sales and maturities of marketable securities, which were primarily reinvested and resulted in realized gains and losses, were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Proceeds from the sales and maturities of marketable securities $ 340,920 $ 242,735 $ 14,525 Realized gains $ 18 $ 16 $ — Realized losses $ (109 ) $ (2 ) $ — |
Contractual Maturities of Short-term and Long-Term Marketable Securities Held | The contractual maturities of short-term and long-term marketable securities held at December 31, 2018 and 2017 are as follows (in thousands): December 31, 2018 December 31, 2017 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value Due within one year $ 264,959 $ 264,660 $ 212,137 $ 211,933 Due after one year through four years 74,902 74,764 85,426 85,182 Total $ 339,861 $ 339,424 $ 297,563 $ 297,115 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of December 31, 2018 and 2017 (in thousands): December 31, 2018 2017 Raw materials $ 18,420 $ 32,599 Work-in-process 218 965 Finished goods 6,873 28,668 Inventory $ 25,511 $ 62,232 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following as of December 31, 2018 and 2017 (in thousands): December 31, 2018 2017 Engineering laboratory equipment $ 50,590 $ 39,433 Computer software 3,132 2,281 Computer equipment 6,018 4,380 Furniture and fixtures 3,227 3,041 Leasehold improvements 3,581 2,282 Construction in progress 1,279 4,591 Total property and equipment 67,827 56,008 Less: Accumulated depreciation (41,184 ) (27,833 ) Property and equipment, net $ 26,643 $ 28,175 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of December 31, 2018 and 2017 (in thousands): December 31, 2018 2017 Employee-related liabilities $ 8,509 $ 5,233 Goods and services received not invoiced 3,592 12,827 Accrued manufacturing related expenses 2,342 4,007 Warranty reserve 8,220 8,306 Other accrued liabilities 9,185 6,861 Accrued liabilities $ 31,848 $ 37,234 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis | The fair value of these assets measured on a recurring basis was determined using the following inputs as of December 31, 2018 and 2017 (in thousands): December 31, 2018 Quoted Significant Significant Total Fair Assets: Money market funds $ — $ 1,563 $ — $ 1,563 U.S. treasury bonds — 40,355 — 40,355 Commercial paper — 60,422 — 60,422 Certificates of deposit — 36,840 — 36,840 Asset-backed securities — 47,714 — 47,714 Corporate debt securities — 163,324 — 163,324 Total $ — $ 350,218 $ — $ 350,218 December 31, 2017 Quoted Significant Significant Total Fair Assets: Money market funds $ — $ 11,070 $ — $ 11,070 Repurchase agreements — 12,500 — 12,500 U.S. treasury bonds — 26,236 — 26,236 Commercial paper — 60,614 — 60,614 Certificates of deposit — 34,966 — 34,966 Asset-backed securities — 33,322 — 33,322 Corporate debt securities — 142,679 — 142,679 Total $ — $ 321,387 $ — $ 321,387 |
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 year ended December 31, 2016 is as follows (in thousands): Year Ended December 31, 2016 Preferred stock warrant liability at beginning of period $ 3,254 Change in fair value 3,361 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 $ — |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Classification of Stock-based Compensation | The following table summarizes the classification of stock-based compensation in the consolidated income statements for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Cost of revenue $ 2,075 $ 1,993 $ 1,629 Research and development 17,564 14,150 12,347 Sales, general and administrative 9,975 7,230 6,769 Total stock-based compensation $ 29,614 $ 23,373 $ 20,745 |
Schedule of Stock-Based Compensation Expense by Award Type | The following table summarizes stock-based compensation expense by award type for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Restricted stock units $ 25,864 $ 19,455 $ 17,862 Stock options 2,343 2,614 2,082 Employee stock purchase plan 1,284 1,188 696 Other awards 123 116 105 Total stock-based compensation $ 29,614 $ 23,373 $ 20,745 |
Weighted-Average Assumptions Used to Estimate Fair Value of 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. No stock option awards were issued to employees during the year ended December 31, 2017 . During the years ended December 31, 2018 and 2016 , the assumptions used in the Black-Scholes model were as follows |
Stock Option Activities | . A summary of stock option activity under the Company’s equity incentive plans for the year ended December 31, 2018 is as follows: |
Weighted-Average Assumptions Used to Estimate Fair Value | . The Company estimated the fair value of the 2017 PRSUs using a Monte Carlo valuation model on the date of grant, using the following assumptions: . The Company estimated the fair value of the market-based RSUs using a Monte Carlo valuation model on the date of grant, using the following assumptions: . The Company estimated the fair value of the 2018 PRSUs using a Monte Carlo valuation model on the date of grant, using the following assumptions: |
Summary of Changes in Company's RSU | . A summary of the changes in the Company’s RSUs during the year ended December 31, 2018 is as follows: |
Weighted-Average Assumptions Used to Estimate ESPP Fair Value | . The fair value of the awards issued under the 2016 ESPP to employees was estimated at the beginning of the offering period using a Black-Scholes option-pricing model with the following assumptions: |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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): Year Ended December 31, 2018 2017 2016 Numerator: Net income $ 4,916 $ 38,508 $ 131,577 Less: preferred stock accretion — — (1,722 ) Less: undistributed earnings attributable to participating securities — — (34,571 ) Net income attributable to common stockholders - basic and diluted $ 4,916 $ 38,508 $ 95,284 Denominator: Weighted-average shares used to compute net income per share attributable to common stockholders - basic 40,259 38,920 25,307 Dilutive effect of stock options, unvested restricted stock and restricted stock units, preferred stock warrants and employee stock purchase plan 1,738 2,770 4,278 Weighted-average shares used to compute net income per share attributable to common stockholders - diluted 41,997 41,690 29,585 Net income per share attributable to common stockholders Basic $ 0.12 $ 0.99 $ 3.77 Diluted $ 0.12 $ 0.92 $ 3.22 |
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: Year Ended December 31, 2018 2017 2016 Options to purchase common stock 91 87 46 Unvested restricted stock units 336 425 46 Employee stock purchase plan 1 — — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Annual Minimum Lease Payments | Future minimum lease payments due under these non-cancelable lease agreements as of December 31, 2018 , are as follows (in thousands): Amounts 2019 $ 3,888 2020 4,280 2021 4,394 2022 4,248 2023 4,401 Thereafter 5,252 Total $ 26,463 |
Schedule of Changes in Warranty Reserve | Changes in the Company’s warranty liability, which is included as a component of accrued liabilities on the consolidated balance sheets, are set forth in the table below (in thousands): Year Ended December 31, 2018 2017 2016 Warranty reserve, beginning of period $ 8,306 $ 2,158 $ 763 Provisions made to warranty reserve during the period 11,775 16,597 5,058 Charges against warranty reserve during the period (11,861 ) (10,449 ) (3,663 ) Warranty reserve, end of period $ 8,220 $ 8,306 $ 2,158 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of (Loss) Income before Provision (Benefit) for Income Taxes | The components of (loss) income before (benefit) provision for income taxes are as follows (in thousands): Year Ended December 31, 2018 2017 2016 United States $ (35,832 ) $ (30,030 ) $ 4,305 Foreign 35,428 70,333 110,316 Total $ (404 ) $ 40,303 $ 114,621 |
Components of (Benefit) Provision for Income Taxes | The components of the (benefit) provision for income taxes are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current income tax (benefit) provision Federal $ (9,417 ) $ 18,174 $ (8,090 ) State 23 52 53 Foreign 921 1,849 3,414 Total current income tax (benefit) provision $ (8,473 ) $ 20,075 $ (4,623 ) Deferred income tax benefit Federal 2,944 (14,108 ) (5,797 ) State 480 (4,083 ) (6,168 ) Foreign (271 ) (89 ) (368 ) Total deferred income tax benefit 3,153 (18,280 ) (12,333 ) Total income tax (benefit) provision $ (5,320 ) $ 1,795 $ (16,956 ) |
Components of Net Deferred Tax Assets | Significant components of the Company’s net deferred tax assets at December 31, 2018 and 2017 , are as follows (in thousands): December 31, 2018 2017 Deferred tax assets: Accrued expenses $ 3,517 $ 4,129 Net operating loss carryforwards 18,641 12,962 Credit carryforwards 21,568 23,249 Stock-based compensation 3,561 3,360 Depreciation — 171 Other 248 332 Total deferred tax assets $ 47,535 $ 44,203 Deferred tax liabilities: Depreciation (1,567 ) — Other (868 ) (886 ) Total deferred tax liabilities (2,435 ) (886 ) Valuation allowance (6,383 ) (1,416 ) Net deferred tax assets $ 38,717 $ 41,901 |
Summarizes Changes in Deferred Tax Asset Valuation Allowance | The table below summarizes changes in the deferred tax asset valuation allowance (in thousands): Year Ended December 31, Beginning Balance Additions Reductions Ending Balance 2016 $ 554 180 — $ 734 2017 $ 734 682 — $ 1,416 2018 $ 1,416 4,967 — $ 6,383 |
Provision for Income Taxes Computed at Statutory Federal Income Tax Rate to (Benefit) Provision for Income Taxes | A reconciliation of the (benefit) provision for income taxes computed at the statutory federal income tax rate to the (benefit) provision for income taxes as reflected in the consolidated financial statements is as follows: Year Ended December 31, 2018 2017 2016 Provision for income taxes at statutory rate 21.0 % 35.0 % 35.0 % Increases (decreases) resulting from: Federal tax credits 1,304.6 (15.3 ) (4.1 ) Change in valuation allowance (1,230.7 ) 1.7 0.2 State tax expense, net of federal benefit 1,058.0 (8.0 ) (3.8 ) Meals and entertainment (24.0 ) 0.4 0.1 Stock-based compensation expense 384.1 (32.9 ) (18.0 ) Change in fair value of preferred stock warrants — — 1.0 Change in uncertain tax positions (116.5 ) 3.5 1.9 Change in federal rate due to tax reform — 18.0 — Transition tax (9.6 ) 57.7 — APB23 state liability (2.0 ) — — Foreign rate differential 1,598.6 (55.5 ) (31.8 ) Foreign rate inclusion (1,990.5 ) 2.9 4.5 Other 323.8 (3.0 ) 0.2 Effective income tax rate 1,316.8 % 4.5 % (14.8 )% |
Changes in Gross Unrecognized Tax Benefits | The aggregate changes in gross unrecognized tax benefits during the years ended December 31, 2018 and 2017 were as follows (in thousands): Balance at December 31, 2016 $ 3,078 Increases for the tax positions taken during the year 1,426 Balance at December 31, 2017 $ 4,504 Increases for the tax positions taken during the year 470 Balance at December 31, 2018 $ 4,974 |
CONCENTRATIONS OF RISK (Tables)
CONCENTRATIONS OF RISK (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Summary of Concentrations of Risk | Customers with revenue equal to or greater than 10% of total revenue for the years ended December 31, 2018 , 2017 and 2016 were as follows: Year Ended December 31, 2018 2017 2016 A (1) 20 % 30 % 32 % B 15 % 15 % 26 % C 17 % (2) 11 % * E 14 % * * __________________________________________________________________________________________ * Less than 10% of revenue in the period indicated (1) Customer A was subject to U.S. Department of Commerce restrictions that prevented sales to this customer from April 15, 2018 through July 13, 2018. (2) Customer C was acquired by one of the Company’s other customers on October 1, 2018. The figure in the table above takes into account all revenue for the combined customer for the year ended December 31, 2018 . Prior to the acquisition, Customer C accounted for 17% of total revenue for the nine-month period ended September 30, 2018. Customers that accounted for equal to or greater than 10% of accounts receivable at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 A 30 % 15 % B 13 % 10 % C * 19 % D 10 % * F 17 % * __________________________________________________________________________________________ * Less than 10% of accounts receivable in the period indicated |
Supplier Concentration Risk | |
Concentration Risk [Line Items] | |
Summary of Concentrations of Risk | For the years ended December 31, 2018 , 2017 and 2016 , total purchases from each of the suppliers were as follows: Year Ended December 31, 2018 2017 2016 W * * 11 % X 18 % 19 % 37 % Y 53 % 49 % 24 % Z * 10 % 18 % __________________________________________________________________________________________ * Less than 10% of total purchases in the period indicated |
UNAUDITED QUARTERLY FINANCIAL_2
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Information | 2018 First Second Third Fourth (in thousands) Revenue $ 72,941 $ 65,003 $ 94,814 $ 107,133 Cost of revenue 48,870 39,798 49,981 54,122 Gross profit 24,071 25,205 44,833 53,011 Operating expenses: Research and development 24,445 24,340 24,696 28,925 Sales, general and administrative 14,288 12,984 12,134 12,458 Total operating expenses 38,733 37,324 36,830 41,383 (Loss) income from operations (14,662 ) (12,119 ) 8,003 11,628 Total other income, net 1,283 1,300 2,011 2,152 (Loss) income before (benefit) provision for income taxes (13,379 ) (10,819 ) 10,014 13,780 (Benefit) provision for income taxes (4,301 ) (7,574 ) 1,863 4,692 Net (loss) income $ (9,078 ) $ (3,245 ) $ 8,151 $ 9,088 Net (loss) income per share: Basic $ (0.23 ) $ (0.08 ) $ 0.20 $ 0.23 Diluted $ (0.23 ) $ (0.08 ) $ 0.19 $ 0.22 2017 First Second Third Fourth (in thousands) Revenue $ 114,667 $ 78,898 $ 104,998 $ 86,603 Cost of revenue 58,367 53,516 58,856 46,587 Gross profit 56,300 25,382 46,142 40,016 Operating expenses: Research and development 17,728 22,734 27,135 24,430 Sales, general and administrative 8,691 9,368 10,105 10,643 Gain on disposal of property and equipment — (47 ) — — Total operating expenses 26,419 32,055 37,240 35,073 Income (loss) from operations 29,881 (6,673 ) 8,902 4,943 Total other income, net 407 826 969 1,048 Income (loss) before (benefit) provision for income taxes 30,288 (5,847 ) 9,871 5,991 (Benefit) provision for income taxes (5,421 ) (10,511 ) (8,628 ) 26,355 Net income (loss) $ 35,709 $ 4,664 $ 18,499 $ (20,364 ) Net income (loss) per share: Basic $ 0.93 $ 0.12 $ 0.47 $ (0.52 ) Diluted $ 0.86 $ 0.11 $ 0.44 $ (0.52 ) |
NATURE OF THE BUSINESS AND OP_2
NATURE OF THE BUSINESS AND OPERATIONS (Details) | Oct. 13, 2016USD ($)$ / sharesshares | May 18, 2016USD ($)$ / sharesshares | Dec. 31, 2018USD ($)GB | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||
Aggregate proceeds from IPO | $ | $ 0 | $ 0 | $ 214,551,000 | ||
IPO | |||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||
Common stock, issued and sold (in shares) | shares | 4,570,184 | ||||
Additional shares sold by selling stockholders (in shares) | shares | 604,816 | ||||
Price per share (in USD per share) | $ / shares | $ 23 | ||||
Aggregate proceeds from IPO | $ | $ 97,800,000 | ||||
Offering expenses | $ | $ 4,300,000 | ||||
Conversion of redeemable preferred stock into common stock (in shares) | shares | 24,177,495 | ||||
Stock offered through certain selling stockholders | |||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||
Proceeds from sale of shares | $ | $ 0 | $ 0 | |||
Follow-on offering | |||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||
Common stock, issued and sold (in shares) | shares | 1,210,302 | ||||
Additional shares sold by selling stockholders (in shares) | shares | 3,289,698 | ||||
Price per share (in USD per share) | $ / shares | $ 100 | ||||
Offering expenses | $ | $ 1,200,000 | ||||
Proceeds from sale of shares | $ | $ 116,800,000 | ||||
Maximum | |||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||
Optical interconnect modules transmission speed | GB | 1,200 | ||||
Maximum | Underwriters | |||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||
Additional shares sold by selling stockholders (in shares) | shares | 675,000 | ||||
Minimum | |||||
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||
Optical interconnect modules transmission speed | GB | 100 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 12 Months Ended | |||||
Dec. 31, 2018USD ($)segmentshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Jan. 01, 2019USD ($) | Apr. 01, 2018USD ($) | Jan. 01, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Allowance for doubtful accounts receivable | $ 0 | $ 0 | ||||
Impairment of long-lived assets | 0 | 0 | $ 0 | |||
Advertising expenses | $ 0 | $ 0 | $ 0 | |||
Warrants outstanding | shares | 0 | 0 | 0 | |||
Foreign currency transaction (losses) gain | $ (400,000) | $ (200,000) | $ (100,000) | |||
Gross uncertain tax positions | 4,974,000 | 4,504,000 | $ 3,078,000 | |||
Unrecognized tax benefits that, if recognized, would favorably impact effective tax rate | $ 3,000,000 | 2,300,000 | ||||
Number of operating segments | segment | 1 | |||||
Retained earnings | $ 182,540,000 | $ 177,422,000 | ||||
Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Standard warranty period on repair or replacement of defective products | 12 months | |||||
Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Standard warranty period on repair or replacement of defective products | 24 months | |||||
Customer Concentration Risk | Revenue | Multiple Element Arrangements | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue recognized from multiple-element arrangements, less than | 1.00% | 1.00% | ||||
Accounting Standards Update 2018-02 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Retained earnings | $ 100,000 | |||||
Accounting Standards Update 2018-15 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Implementation costs incurred | $ 200,000 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Retained earnings | $ 200,000 | |||||
Scenario, Forecast | Accounting Standards Update 2016-02 | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Operating lease, liability | $ 14,800,000 | |||||
Operating lease, right-of-use asset | 20,300,000 | |||||
Scenario, Forecast | Accounting Standards Update 2016-02 | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Operating lease, liability | 16,800,000 | |||||
Operating lease, right-of-use asset | $ 22,300,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue, Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 $ in Millions | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 2.1 |
Revenue, remaining performance obligation, period |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Engineering laboratory equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Engineering laboratory equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 1 year |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 107,133 | $ 94,814 | $ 65,003 | $ 72,941 | $ 86,603 | $ 104,998 | $ 78,898 | $ 114,667 | $ 339,891 | $ 385,166 | $ 478,412 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 56,839 | 60,723 | 87,678 | ||||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 98,906 | 148,431 | 194,917 | ||||||||
Germany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 58,711 | 57,051 | 114,678 | ||||||||
Thailand | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 68,217 | 48,016 | 33,136 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 57,218 | $ 70,945 | $ 48,003 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Total Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 26,643 | $ 28,175 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 18,123 | 19,065 |
Thailand | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 4,147 | 7,065 |
China | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 1,703 | 1,165 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 2,670 | $ 880 |
REVENUE - Deferred Revenue and
REVENUE - Deferred Revenue and Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Accounts receivable | $ 90,831 | $ 86,602 | $ 86,602 | |
Deferred Revenue (Non-current) | 5,101 | 573 | 197 | |
Deferred Revenue (Non-current) | 3,707 | $ 254 | ||
Increase, Accounts Receivable | 4,229 | $ (21,525) | $ 66,867 | |
Increase, Deferred Revenue (Current) | 4,904 | |||
Increase, Deferred Revenue (Non-current) | $ 3,453 |
REVENUE Disaggregation of Reven
REVENUE Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 107,133 | $ 94,814 | $ 65,003 | $ 72,941 | $ 86,603 | $ 104,998 | $ 78,898 | $ 114,667 | $ 339,891 | $ 385,166 | $ 478,412 |
Revenue, as a % of Total Revenue | 100.00% | ||||||||||
Embedded Modules | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 77,286 | ||||||||||
Revenue, as a % of Total Revenue | 23.00% | ||||||||||
Pluggable Modules | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 189,533 | ||||||||||
Revenue, as a % of Total Revenue | 56.00% | ||||||||||
Semiconductors | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 73,072 | ||||||||||
Revenue, as a % of Total Revenue | 21.00% |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Cash, Cash Equivalents and Short- and Long-term Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | $ 400,306 | $ 365,059 |
Gross Unrealized Gains | 23 | 16 |
Gross Unrealized Losses Less than One Year | (336) | |
Gross Unrealized Losses Greater than One Year | (125) | |
Gross Unrealized Losses | (465) | |
Estimated Fair Value | 399,868 | 364,610 |
Cash and Cash Equivalents | 60,444 | 67,495 |
Marketable Securities | 339,424 | 297,115 |
U.S. treasury bonds | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 40,367 | 26,316 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less than One Year | (9) | |
Gross Unrealized Losses Greater than One Year | (3) | |
Gross Unrealized Losses | (80) | |
Estimated Fair Value | 40,355 | 26,236 |
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | 40,355 | 26,236 |
Commercial paper | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 60,435 | 60,623 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less than One Year | (13) | |
Gross Unrealized Losses Greater than One Year | 0 | |
Gross Unrealized Losses | (9) | |
Estimated Fair Value | 60,422 | 60,614 |
Cash and Cash Equivalents | 6,668 | 0 |
Marketable Securities | 53,754 | 60,614 |
Certificates of deposit | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 36,839 | 34,993 |
Gross Unrealized Gains | 13 | 6 |
Gross Unrealized Losses Less than One Year | (12) | |
Gross Unrealized Losses Greater than One Year | 0 | |
Gross Unrealized Losses | (33) | |
Estimated Fair Value | 36,840 | 34,966 |
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | 36,840 | 34,966 |
Asset-backed securities | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 47,798 | 33,374 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses Less than One Year | (63) | |
Gross Unrealized Losses Greater than One Year | (22) | |
Gross Unrealized Losses | (53) | |
Estimated Fair Value | 47,714 | 33,322 |
Cash and Cash Equivalents | 0 | 702 |
Marketable Securities | 47,714 | 32,620 |
Corporate debt securities | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 163,654 | 142,960 |
Gross Unrealized Gains | 9 | 9 |
Gross Unrealized Losses Less than One Year | (239) | |
Gross Unrealized Losses Greater than One Year | (100) | |
Gross Unrealized Losses | (290) | |
Estimated Fair Value | 163,324 | 142,679 |
Cash and Cash Equivalents | 2,563 | 0 |
Marketable Securities | 160,761 | 142,679 |
Repurchase agreements | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 12,500 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 12,500 | |
Cash and Cash Equivalents | 12,500 | |
Marketable Securities | 0 | |
Cash | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 49,650 | 43,223 |
Estimated Fair Value | 49,650 | 43,223 |
Cash and Cash Equivalents | 49,650 | 43,223 |
Marketable Securities | 0 | 0 |
Money market funds | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 1,563 | 11,070 |
Estimated Fair Value | 1,563 | 11,070 |
Cash and Cash Equivalents | 1,563 | 11,070 |
Marketable Securities | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Proceed
FINANCIAL INSTRUMENTS - Proceeds from Sales and Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from the sales and maturities of marketable securities | $ 340,920 | $ 242,735 | $ 14,525 |
Realized gains | 18 | 16 | 0 |
Realized losses | $ (109) | $ (2) | $ 0 |
FINANCIAL INSTRUMENTS - Contrac
FINANCIAL INSTRUMENTS - Contractual Maturities of Short-term and Long-term Marketable Securities Held (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year, Amortized Cost Basis | $ 264,959 | $ 212,137 |
Due within one year, Aggregate Fair Value | 264,660 | 211,933 |
Due after one year through three years, Amortized Cost Basis | 74,902 | 85,426 |
Due after one year through three years, Aggregate Fair Value | 74,764 | 85,182 |
Amortized Cost Basis | 339,861 | 297,563 |
Aggregate Fair Value | $ 339,424 | $ 297,115 |
INVENTORY - Schedule of Invento
INVENTORY - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 18,420 | $ 32,599 |
Work-in-process | 218 | 965 |
Finished goods | 6,873 | 28,668 |
Inventory | $ 25,511 | $ 62,232 |
INVENTORY - Narrative (Details)
INVENTORY - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | ||
Inventory write-offs | $ 3.9 | |
Remaining reserve | $ 1 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 67,827 | $ 56,008 |
Less: Accumulated depreciation | (41,184) | (27,833) |
Property and equipment, net | 26,643 | 28,175 |
Engineering laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 50,590 | 39,433 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,132 | 2,281 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,018 | 4,380 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,227 | 3,041 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,581 | 2,282 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,279 | $ 4,591 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 13,646 | $ 12,280 | $ 9,168 |
ACCRUED LIABILITIES - Schedule
ACCRUED LIABILITIES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||||
Employee-related liabilities | $ 8,509 | $ 5,233 | ||
Goods and services received not invoiced | 3,592 | 12,827 | ||
Accrued manufacturing related expenses | 2,342 | 4,007 | ||
Warranty reserve | 8,220 | 8,306 | $ 2,158 | $ 763 |
Other accrued liabilities | 9,185 | 6,861 | ||
Accrued liabilities | $ 31,848 | $ 37,234 |
FAIR VALUE MEASUREMENT - Summar
FAIR VALUE MEASUREMENT - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 339,424 | $ 297,115 |
U.S. treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 40,355 | 26,236 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 53,754 | 60,614 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 36,840 | 34,966 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 47,714 | 32,620 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 160,761 | 142,679 |
Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 350,218 | 321,387 |
Recurring Basis | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 350,218 | 321,387 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | U.S. treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 40,355 | 26,236 |
Recurring Basis | U.S. treasury bonds | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | U.S. treasury bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 40,355 | 26,236 |
Recurring Basis | U.S. treasury bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 60,422 | 60,614 |
Recurring Basis | Commercial paper | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 60,422 | 60,614 |
Recurring Basis | Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 36,840 | 34,966 |
Recurring Basis | Certificates of deposit | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | Certificates of deposit | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 36,840 | 34,966 |
Recurring Basis | Certificates of deposit | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 47,714 | 33,322 |
Recurring Basis | Asset-backed securities | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 47,714 | 33,322 |
Recurring Basis | Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 163,324 | 142,679 |
Recurring Basis | Corporate debt securities | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | Corporate debt securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 163,324 | 142,679 |
Recurring Basis | Corporate debt securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Recurring Basis | Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 12,500 | |
Recurring Basis | Repurchase agreements | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Recurring Basis | Repurchase agreements | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 12,500 | |
Recurring Basis | Repurchase agreements | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Money market funds | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 1,563 | 11,070 |
Money market funds | Recurring Basis | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Money market funds | Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 1,563 | 11,070 |
Money market funds | Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Narrat
FAIR VALUE MEASUREMENT - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Transfers between fair value measurement levels | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT FAIR VAL
FAIR VALUE MEASUREMENT FAIR VALUE MEASUREMENT- Summary of Changes in the Preferred Stock Warrant Liability Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Preferred stock warrant liability at beginning of period | $ 0 | $ 3,254 | |
Change in fair value | $ 0 | $ 0 | 3,361 |
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 | $ 0 |
STOCK COMPENSATION PLANS - Clas
STOCK COMPENSATION PLANS - Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 29,614 | $ 23,373 | $ 20,745 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 2,075 | 1,993 | 1,629 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 17,564 | 14,150 | 12,347 |
Sales, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 9,975 | $ 7,230 | $ 6,769 |
STOCK COMPENSATION PLANS - Sche
STOCK COMPENSATION PLANS - Schedule of Stock-Based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 29,614 | $ 23,373 | $ 20,745 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 1,284 | 1,188 | 696 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 25,864 | 19,455 | 17,862 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 2,343 | 2,614 | 2,082 |
Other awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 123 | $ 116 | $ 105 |
STOCK COMPENSATION PLANS - Narr
STOCK COMPENSATION PLANS - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 12, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 10,000 | 0 | ||
Intrinsic value of stock options exercised | $ 15,855,000 | |||
Recognized stock-based compensation expense | $ 29,614,000 | $ 23,373,000 | $ 20,745,000 | |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | ||
Preferred stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation cost, stock options | $ 2,500,000 | $ 4,800,000 | ||
Weighted average recognition period | 1 year 1 month 6 days | 2 years 2 months 12 days | ||
Weighted average grant date fair value | $ 15.58 | $ 11.82 | ||
Intrinsic value of stock options exercised | $ 15,900,000 | $ 33,500,000 | $ 35,000,000 | |
Recognized stock-based compensation expense | $ 2,343,000 | $ 2,614,000 | 2,082,000 | |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 4 years | |||
Weighted average recognition period | 1 year 10 months 24 days | 2 years 10 months 24 days | ||
Restricted stock units granted (in shares) | 847,000 | |||
Recognized stock-based compensation expense | $ 25,864,000 | $ 19,455,000 | 17,862,000 | |
Vested awards settled in cash | 0 | |||
Unrecognized stock-based compensation expense | $ 52,500,000 | $ 47,800,000 | ||
Performance Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 4 years | |||
Right to receive number of common stock | 1 | 1 | ||
Stock price objective period | 2 years | |||
Performance Awards | Executive | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (in shares) | 461,000 | |||
Performance Awards | Maximum | Executive | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (in shares) | 94,854 | |||
Earned performance awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 3 years | |||
Performance objective period | 3 years | 2 years | ||
Vesting awards, amount | 0 | |||
Earned performance awards | Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent of shares vesting | 33.00% | |||
Earned performance awards | Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent of shares vesting | 33.00% | |||
Earned performance awards | Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent of shares vesting | 34.00% | |||
2009 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual increase in ordinary shares for available for future issuance (in shares) | 497,302,000 | |||
2009 Stock Plan | Tranche One | Vesting Option One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent of shares vesting | 20.00% | |||
2009 Stock Plan | Tranche One | Vesting Option Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent of shares vesting | 25.00% | |||
2009 Stock Plan | Tranche Two | Vesting Option One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 4 years | |||
2009 Stock Plan | Tranche Two | Vesting Option Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 3 years | |||
2009 Stock Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expiration period | 10 years | |||
2009 Stock Plan | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expiration period | 7 years | |||
Recognized stock-based compensation expense | 10,400,000 | |||
2009 Stock Plan | Restricted stock units | IPO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized stock-based compensation expense | $ 4,900,000 | |||
2009 Stock Plan | Restricted stock units | Employees, Directors And Executives | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (in shares) | 1,300,000 | |||
2009 Stock Plan | Performance Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized stock-based compensation expense | $ 0 | |||
2016 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved, available for future issuance (in shares) | 3,203,355 | |||
Annual shares increase for future issuance by percentage | 4.00% | |||
Annual shares authorized for issuance by increased percentage | 4.00% | |||
Common stock authorized for issuance (in shares) | 7,917,554 | |||
2016 Equity Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual increase in ordinary shares for available for future issuance (in shares) | 3,600,000 | |||
2016 Equity Incentive Plan | Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent of shares vesting | 25.00% | |||
2016 Equity Incentive Plan | Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 3 years | |||
2016 Equity Incentive Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expiration period | 10 years | |||
2016 Equity Incentive Plan | Restricted stock units | Executive | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (in shares) | 200,000 | |||
2016 Equity Incentive Plan | Restricted stock units | Market condition | Executive | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized stock-based compensation expense | $ 3,100,000 | |||
2016 ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved, available for future issuance (in shares) | 807,421 | |||
Annual shares increase for future issuance by percentage | 1.00% | |||
Annual shares authorized for issuance by increased percentage | 0.00% | |||
Common stock authorized for issuance (in shares) | 1,081,047 | |||
Percentage of salary contribution by employees | 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 (in shares) | 900,000 |
STOCK COMPENSATION PLANS - Weig
STOCK COMPENSATION PLANS - Weighted-Average Assumptions Used to Estimate Fair Value of Options (Details) - Stock options | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.89% | |
Risk-free interest rate, minimum | 1.20% | |
Risk-free interest rate, maximum | 1.60% | |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility, minimum | 53.50% | 59.50% |
Expected volatility, maximum | 60.00% | |
Expected term (in years) | 6 years 3 months 18 days | 6 years 3 months 18 days |
STOCK COMPENSATION PLANS - Stoc
STOCK COMPENSATION PLANS - Stock Option Activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options, Abstract | ||
Number of options outstanding at beginning of period (in shares) | 1,634,000 | |
Number of options granted (in shares) | 10,000 | 0 |
Number of options exercised (in shares) | (489,000) | |
Number of options cancelled (in shares) | (39,000) | |
Number of options outstanding at end of period (in shares) | 1,116,000 | 1,634,000 |
Number of options vested and expected to vest (in shares) | 1,116,000 | |
Number of options exercisable (in shares) | 837,000 | |
Weighted Average Exercise Price, Abstract | ||
Weighted-average exercise price outstanding at beginning of period (in USD per share) | $ 8.34 | |
Options exercised, Weighted-average exercise price (in USD per share) | 28.77 | |
Options exercised, Weighted-average exercise price (in USD per share) | 5.22 | |
Options cancelled, Weighted-average exercise price (in USD per share) | 11.48 | |
Weighted-average exercise price outstanding at end of period (in USD per share) | 9.78 | $ 8.34 |
Options vested and expected to vest, Weighted-average exercise price (in USD per share) | 9.78 | |
Options exercisable, Weighted-average exercise price (in USD per share) | $ 7.38 | |
Weighted-Average Remaining Contract Term, Abstract | ||
Options outstanding, Weighted-average remaining contractual term (in years) | 6 years 7 months 6 days | |
Options vested and expected to vest, Weighted-average remaining contractual term (in years) | 5 years 8 months 5 days | |
Options exercisable, Weighted-average remaining contractual term (in years) | 5 years 3 months 4 days | |
Aggregate Intrinsic Value, Abstract | ||
Options outstanding, Aggregate intrinsic value at beginning of period | $ 47,356 | |
Options exercised, Aggregate intrinsic value | 15,855 | |
Options outstanding, Aggregate intrinsic value at end of period | 33,113 | $ 47,356 |
Options vested and expected to vest, Aggregate intrinsic value | 33,113 | |
Options exercisable, Aggregate intrinsic value | $ 26,544 |
STOCK COMPENSATION PLANS - We_2
STOCK COMPENSATION PLANS - Weighted-Average Assumptions Used to Estimate Fair Value of RSUs and PRSUs (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.10% | ||
Expected dividend yield | 0.00% | ||
Expected volatility | 58.90% | ||
Expected term (in years) | 1 year 4 months 24 days | ||
Grant date fair value of underlying shares (in USD per share) | $ 22 | ||
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.30% | 1.30% | |
Expected dividend yield | 0.00% | 0.00% | |
Expected volatility | 51.40% | 58.30% | |
Expected term (in years) | 2 years 10 months 24 days | 1 year 9 months 18 days | |
Minimum | Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of underlying shares (in USD per share) | $ 34.59 | $ 40.38 | |
Maximum | Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of underlying shares (in USD per share) | $ 39.02 | $ 55.02 |
STOCK COMPENSATION PLANS - Chan
STOCK COMPENSATION PLANS - Changes in Company Restricted Stock Units (Details) - Restricted stock units shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Shares outstanding, beginning balance (in shares) | shares | 2,288 |
Granted (in shares) | shares | 847 |
Vested (in shares) | shares | (782) |
Canceled (in shares) | shares | (28) |
Shares outstanding, ending balance (in shares) | shares | 2,325 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Shares outstanding, Weighted-average grant date fair value, Beginning balance (in USD per share) | $ / shares | $ 36.08 |
Granted, Weighted-average grant date fair value (in USD per share) | $ / shares | 40.48 |
Vested, Weighted-average grant date fair value (in USD per share) | $ / shares | 27.56 |
Canceled, Weighted-average grant date fair value (in USD per share) | $ / shares | 36.56 |
Shares outstanding, Weighted-average grant date fair value, Ending balance (in USD per share) | $ / shares | $ 40.55 |
STOCK COMPENSATION PLANS - We_3
STOCK COMPENSATION PLANS - Weighted-Average Assumptions Used to Estimate Fair Value of ESPP (Details) (Details) - 2016 ESPP | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 1.30% | 0.50% | |
Risk-free interest rate, maximum | 2.10% | 1.00% | |
Risk-free interest rate | 0.40% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 48.60% | 48.70% | |
Expected volatility, maximum | 66.40% | 58.70% | |
Expected volatility | 57.30% | ||
Expected term (in years) | 6 months | 6 months | 6 months |
NET INCOME PER SHARE ATTRIBUT_3
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 | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income | $ 9,088 | $ 8,151 | $ (3,245) | $ (9,078) | $ (20,364) | $ 18,499 | $ 4,664 | $ 35,709 | $ 4,916 | $ 38,508 | $ 131,577 |
Less: preferred stock accretion | 0 | 0 | (1,722) | ||||||||
Undistributed earnings attributable to participating securities | 0 | 0 | (34,571) | ||||||||
Net income attributable to common stockholders - basic | 4,916 | 38,508 | 95,284 | ||||||||
Net income attributable to common stockholders - diluted | $ 4,916 | $ 38,508 | $ 95,284 | ||||||||
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 (in shares) | 40,259 | 38,920 | 25,307 | ||||||||
Dilutive effect of stock options, unvested restricted stock and restricted stock units, preferred stock warrants, and employee stock purchase plan (in shares) | 1,738 | 2,770 | 4,278 | ||||||||
Weighted-average shares used to compute net income per share attributable to common stockholders - diluted (in shares) | 41,997 | 41,690 | 29,585 | ||||||||
Net income per share attributable to common stockholders | |||||||||||
Basic (in USD per share) | $ 0.23 | $ 0.20 | $ (0.08) | $ (0.23) | $ (0.52) | $ 0.47 | $ 0.12 | $ 0.93 | $ 0.12 | $ 0.99 | $ 3.77 |
Diluted (in USD per share) | $ 0.22 | $ 0.19 | $ (0.08) | $ (0.23) | $ (0.52) | $ 0.44 | $ 0.11 | $ 0.86 | $ 0.12 | $ 0.92 | $ 3.22 |
NET INCOME PER SHARE ATTRIBUT_4
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS - Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Income Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 (in shares) | 91,000 | 87,000 | 46,000 |
Unvested restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of earnings per share (in shares) | 336,000 | 425,000 | 46,000 |
Employee stock purchase plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of earnings per share (in shares) | 1,000 | 0 | 0 |
Executive | Performance Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Granted (in shares) | 461,000 | ||
Executive | Performance Awards | Maximum | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Granted (in shares) | 94,854 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | Jan. 24, 2019USD ($) | Aug. 31, 2018 | May 31, 2017AC400_Unitcontract_manufacturerCFP_Unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Loss Contingencies [Line Items] | ||||||
Operating leases rent expense | $ | $ 4.7 | $ 5.2 | $ 1.3 | |||
Employee Severance | ||||||
Loss Contingencies [Line Items] | ||||||
Maximum period for employer contributions to cost of health care continuation under Consolidated Omnibus Budget Reconciliation Act that executive is entitled to upon termination | 12 months | |||||
Employee Severance | Chief Executive Officer | ||||||
Loss Contingencies [Line Items] | ||||||
Period to continue receiving base salary that executive is entitled to upon termination | 12 months | |||||
Percentage of annual base salary that executive is entitled to upon termination | 2 | |||||
Percentage of target annual bonus that executive is entitled to upon termination for the year in which it occurs | 1.5 | |||||
Employee Severance | Other Participants | ||||||
Loss Contingencies [Line Items] | ||||||
Period to continue receiving base salary that executive is entitled to upon termination | 9 months | |||||
Percentage of annual base salary that executive is entitled to upon termination | 1 | |||||
Percentage of target annual bonus that executive is entitled to upon termination for the year in which it occurs | 1 | |||||
Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Standard warranty period on repair or replacement of defective products | 12 months | |||||
Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Standard warranty period on repair or replacement of defective products | 24 months | |||||
Damages from product defects | ||||||
Loss Contingencies [Line Items] | ||||||
Contract manufacturers with quality issue | contract_manufacturer | 1 | |||||
Contract manufacturers | contract_manufacturer | 3 | |||||
Damages from product defects | AC400 Unit | ||||||
Loss Contingencies [Line Items] | ||||||
Defective Units | AC400_Unit | 1,300 | |||||
Damages from product defects | CFP Unit | ||||||
Loss Contingencies [Line Items] | ||||||
Defective Units | CFP_Unit | 5,100 | |||||
Shareholder Derivative and Section 220 | Subsequent Event | ||||||
Loss Contingencies [Line Items] | ||||||
Litigation settlement, attorney fees | $ | $ 0.7 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Annual Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 3,888 |
2,020 | 4,280 |
2,021 | 4,394 |
2,022 | 4,248 |
2,023 | 4,401 |
Thereafter | 5,252 |
Total | $ 26,463 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty reserve | $ 8,306 | $ 2,158 | $ 763 |
Provisions made to warranty reserve during the period | 11,775 | 16,597 | 5,058 |
Charges against warranty reserve during the period | (11,861) | (10,449) | (3,663) |
Warranty reserve | $ 8,220 | $ 8,306 | $ 2,158 |
INCOME TAXES - Components of (L
INCOME TAXES - Components of (Loss) Income before Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ (35,832) | $ (30,030) | $ 4,305 | ||||||||
Foreign | 35,428 | 70,333 | 110,316 | ||||||||
(Loss) income before (benefit) provision for income taxes | $ 13,780 | $ 10,014 | $ (10,819) | $ (13,379) | $ 5,991 | $ 9,871 | $ (5,847) | $ 30,288 | $ (404) | $ 40,303 | $ 114,621 |
INCOME TAXES - Components of Pr
INCOME TAXES - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax (benefit) provision | |||||||||||
Federal | $ (9,417) | $ 18,174 | $ (8,090) | ||||||||
State | 23 | 52 | 53 | ||||||||
Foreign | 921 | 1,849 | 3,414 | ||||||||
Total current income tax (benefit) provision | (8,473) | 20,075 | (4,623) | ||||||||
Deferred income tax benefit | |||||||||||
Federal | 2,944 | (14,108) | (5,797) | ||||||||
State | 480 | (4,083) | (6,168) | ||||||||
Foreign | (271) | (89) | (368) | ||||||||
Total deferred income tax benefit | 3,153 | (18,280) | (12,333) | ||||||||
Total income tax (benefit) provision | $ 4,692 | $ 1,863 | $ (7,574) | $ (4,301) | $ 26,355 | $ (8,628) | $ (10,511) | $ (5,421) | $ (5,320) | $ 1,795 | $ (16,956) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||||||||
Provisional income tax expense due to tax reform | $ 31,400,000 | ||||||||||
Provisional transition tax expense due to tax reform | 23,300,000 | ||||||||||
Re-measurement of deferred tax balance tax expense | 7,300,000 | ||||||||||
Provisional transition tax expense, state, due to tax reform | $ 900,000 | ||||||||||
Cumulative foreign earnings where no US income tax was provided | $ 8,700,000 | $ 8,700,000 | |||||||||
Duration taken into consideration to calculate cumulative profitability | 3 years | 3 years | 3 years | ||||||||
Cumulative profitability | 154,500,000 | 194,700,000 | $ 154,500,000 | $ 194,700,000 | $ 170,900,000 | ||||||
Net deferred tax assets | 38,717,000 | 41,901,000 | 38,717,000 | 41,901,000 | 23,500,000 | ||||||
Partial valuation allowance maintained against U.S deferred tax assets | 6,383,000 | 1,416,000 | 6,383,000 | 1,416,000 | 700,000 | ||||||
Partial valuation allowance | 6,383,000 | 1,416,000 | 6,383,000 | 1,416,000 | 700,000 | ||||||
Benefit for income taxes | (4,692,000) | $ (1,863,000) | $ 7,574,000 | $ 4,301,000 | (26,355,000) | $ 8,628,000 | $ 10,511,000 | $ 5,421,000 | $ 5,320,000 | $ (1,795,000) | $ 16,956,000 |
Effective income tax rate | 1316.80% | 4.50% | (14.80%) | ||||||||
Net operating losses utilization limit, year 2017 | 4,800,000 | $ 4,800,000 | |||||||||
Net operating losses utilization limit, year 2018 | 2,300,000 | 2,300,000 | |||||||||
Net operating losses utilization limit, thereafter | 1,400,000 | 1,400,000 | |||||||||
Uncertain tax positions | 4,974,000 | 4,504,000 | 4,974,000 | $ 4,504,000 | $ 3,078,000 | ||||||
Unrecognized tax benefits that, if recognized, would favorably impact effective tax rate | 3,000,000 | 2,300,000 | 3,000,000 | 2,300,000 | |||||||
Interest or penalties recognized | 0 | 0 | 0 | ||||||||
Interest or penalties accrued | 0 | 0 | 0 | 0 | |||||||
Federal | |||||||||||
Income Taxes [Line Items] | |||||||||||
Cumulative profitability | (61,600,000) | $ 13,000,000 | (61,600,000) | $ 13,000,000 | $ 59,500,000 | ||||||
Net operating loss carryforwards | 61,900,000 | 61,900,000 | |||||||||
Expiration of federal net operating loss carryforwards before utilization | 800,000 | 800,000 | |||||||||
Federal | Research and development and other Tax Credit Carryforward | |||||||||||
Income Taxes [Line Items] | |||||||||||
Research and development and other credit carryforwards | 10,600,000 | 10,600,000 | |||||||||
State | |||||||||||
Income Taxes [Line Items] | |||||||||||
Net operating loss carryforwards | 87,400,000 | 87,400,000 | |||||||||
State | Research and development and other Tax Credit Carryforward | |||||||||||
Income Taxes [Line Items] | |||||||||||
Research and development and other credit carryforwards | $ 15,300,000 | $ 15,300,000 |
INCOME TAXES - Net Deferred Tax
INCOME TAXES - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | |||
Accrued expenses | $ 3,517 | $ 4,129 | |
Net operating loss carryforwards | 18,641 | 12,962 | |
Credit carryforwards | 21,568 | 23,249 | |
Stock-based compensation | 3,561 | 3,360 | |
Depreciation | 0 | 171 | |
Other | 248 | 332 | |
Total deferred tax assets | 47,535 | 44,203 | |
Deferred tax liabilities: | |||
Depreciation | (1,567) | 0 | |
Other | (868) | (886) | |
Total deferred tax liabilities | (2,435) | (886) | |
Valuation allowance | (6,383) | (1,416) | $ (700) |
Net deferred tax assets | $ 38,717 | $ 41,901 | $ 23,500 |
INCOME TAXES - Summary of Chang
INCOME TAXES - Summary of Changes in Deferred Tax Asset Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 1,416 | $ 734 | $ 554 |
Additions | 4,967 | 682 | 180 |
Reductions | 0 | 0 | 0 |
Ending Balance | $ 6,383 | $ 1,416 | $ 734 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes Computed at Statutory Federal Income Tax Rate to (Benefit) Provision for Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes at statutory rate | 21.00% | 35.00% | 35.00% |
Increases (decreases) resulting from: | |||
Federal tax credits | 1304.60% | (15.30%) | (4.10%) |
Change in valuation allowance | (1230.70%) | 1.70% | 0.20% |
State tax expense, net of federal benefit | 1058.00% | (8.00%) | (3.80%) |
Meals and entertainment | (24.00%) | 0.40% | 0.10% |
Stock-based compensation expense | 384.10% | (32.90%) | (18.00%) |
Change in fair value of preferred stock warrants | 0.00% | 0.00% | 1.00% |
Change in uncertain tax positions | (116.50%) | 3.50% | 1.90% |
Change in federal rate due to tax reform | 0.00% | 18.00% | 0.00% |
Transition tax | (0.096) | 0.577 | 0 |
APB23 state liability | (2.00%) | 0.00% | 0.00% |
Foreign rate differential | 1598.60% | (55.50%) | (31.80%) |
Foreign rate inclusion | (1990.50%) | 2.90% | 4.50% |
Other | 323.80% | (3.00%) | 0.20% |
Effective income tax rate | 1316.80% | 4.50% | (14.80%) |
INCOME TAXES - Changes in Gross
INCOME TAXES - Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 4,504 | $ 3,078 |
Increases for the tax positions taken during the year | 470 | 1,426 |
Balance at end of year | $ 4,974 | $ 4,504 |
CONCENTRATIONS OF RISK - Summar
CONCENTRATIONS OF RISK - Summary of Customer Concentration of Total Revenue (Details) - Customer Concentration Risk - Revenue | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Customer A | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 20.00% | 30.00% | 32.00% | |
Customer B | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 15.00% | 15.00% | 26.00% | |
Customer C | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 17.00% | 17.00% | 11.00% | |
Customer E | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 14.00% |
CONCENTRATIONS OF RISK - Summ_2
CONCENTRATIONS OF RISK - Summary of Customer Concentration of Accounts Receivable (Details) - Customer Concentration Risk - Accounts Receivable | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 30.00% | 15.00% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.00% | 10.00% |
Customer C | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 19.00% | |
Customer D | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Customer F | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 17.00% |
CONCENTRATIONS OF RISK - Summ_3
CONCENTRATIONS OF RISK - Summary of Supplier Concentration (Details) - Supplier Concentration Risk - Purchases | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplier W | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Supplier X | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18.00% | 19.00% | 37.00% |
Supplier Y | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 53.00% | 49.00% | 24.00% |
Supplier Z | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 18.00% |
CONCENTRATIONS OF RISK - Narrat
CONCENTRATIONS OF RISK - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Vendor A | Supplier Concentration Risk | Research and development | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 18.00% | 16.00% |
RETIREMENT PLAN - Narrative (De
RETIREMENT PLAN - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Total matching contributions to 401 (k) Plan | $ 1.6 | $ 1.3 | $ 0.8 |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
ADI | |||
Related Party Transaction [Line Items] | |||
Purchase from related party | $ 3.8 | $ 4.5 | $ 4.9 |
Development agreement | 1.5 | ||
Development arrangement expense | 0.8 | ||
M/A-COM | |||
Related Party Transaction [Line Items] | |||
Purchase from related party | $ 0.3 | $ 0.8 |
UNAUDITED QUARTERLY FINANCIAL_3
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 107,133 | $ 94,814 | $ 65,003 | $ 72,941 | $ 86,603 | $ 104,998 | $ 78,898 | $ 114,667 | $ 339,891 | $ 385,166 | $ 478,412 |
Cost of revenue | 54,122 | 49,981 | 39,798 | 48,870 | 46,587 | 58,856 | 53,516 | 58,367 | 192,771 | 217,326 | 257,425 |
Gross profit | 53,011 | 44,833 | 25,205 | 24,071 | 40,016 | 46,142 | 25,382 | 56,300 | 147,120 | 167,840 | 220,987 |
Operating expenses: | |||||||||||
Research and development | 28,925 | 24,696 | 24,340 | 24,445 | 24,430 | 27,135 | 22,734 | 17,728 | 102,406 | 92,027 | 75,696 |
Sales, general and administrative | 12,458 | 12,134 | 12,984 | 14,288 | 10,643 | 10,105 | 9,368 | 8,691 | 51,864 | 38,807 | 27,676 |
(Gain) loss on disposal of property and equipment | 0 | 0 | (47) | 0 | 0 | (47) | 25 | ||||
Total operating expenses | 41,383 | 36,830 | 37,324 | 38,733 | 35,073 | 37,240 | 32,055 | 26,419 | 154,270 | 130,787 | 103,397 |
(Loss) income from operations | 11,628 | 8,003 | (12,119) | (14,662) | 4,943 | 8,902 | (6,673) | 29,881 | (7,150) | 37,053 | 117,590 |
Total other income, net | 2,152 | 2,011 | 1,300 | 1,283 | 1,048 | 969 | 826 | 407 | 6,746 | 3,250 | (2,969) |
(Loss) income before (benefit) provision for income taxes | 13,780 | 10,014 | (10,819) | (13,379) | 5,991 | 9,871 | (5,847) | 30,288 | (404) | 40,303 | 114,621 |
(Benefit) provision for income taxes | 4,692 | 1,863 | (7,574) | (4,301) | 26,355 | (8,628) | (10,511) | (5,421) | (5,320) | 1,795 | (16,956) |
Net income | $ 9,088 | $ 8,151 | $ (3,245) | $ (9,078) | $ (20,364) | $ 18,499 | $ 4,664 | $ 35,709 | $ 4,916 | $ 38,508 | $ 131,577 |
Net (loss) income per share: | |||||||||||
Basic (in USD per share) | $ 0.23 | $ 0.20 | $ (0.08) | $ (0.23) | $ (0.52) | $ 0.47 | $ 0.12 | $ 0.93 | $ 0.12 | $ 0.99 | $ 3.77 |
Diluted (in USD per share) | $ 0.22 | $ 0.19 | $ (0.08) | $ (0.23) | $ (0.52) | $ 0.44 | $ 0.11 | $ 0.86 | $ 0.12 | $ 0.92 | $ 3.22 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - shares | Feb. 14, 2019 | Jan. 01, 2019 | Feb. 14, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||
Common stock authorized for issuance (in shares) | 10,000 | 0 | |||
Subsequent Event | 2016 Equity Incentive Plan | |||||
Subsequent Event [Line Items] | |||||
Annual increase of shares for future issuance | 1,640,964 | ||||
Restricted stock units | |||||
Subsequent Event [Line Items] | |||||
Awards vesting period | 4 years | ||||
Restricted stock units | Subsequent Event | 2016 Equity Incentive Plan | |||||
Subsequent Event [Line Items] | |||||
Common stock authorized for issuance (in shares) | 89,420 | ||||
Awards vesting period | 4 years | ||||
Performance Awards | |||||
Subsequent Event [Line Items] | |||||
Awards vesting period | 4 years | ||||
Performance Awards | Subsequent Event | 2016 Equity Incentive Plan | |||||
Subsequent Event [Line Items] | |||||
Common stock authorized for issuance (in shares) | 88,084 | ||||
Awards vesting period | 3 years |
Uncategorized Items - acia-2018
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 157,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (45,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 202,000 |