Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Acacia Communications, Inc. | |
Trading Symbol | ACIA | |
Entity Central Index Key | 0001651235 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (in shares) | 40,598,841 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 73,532 | $ 60,444 |
Marketable securities - short-term | 265,899 | 264,660 |
Accounts receivable | 83,391 | 90,831 |
Inventory | 26,712 | 25,511 |
Prepaid expenses and other current assets | 11,793 | 12,598 |
Total current assets | 461,327 | 454,044 |
Marketable securities - long-term | 89,811 | 74,764 |
Property and equipment, net | 26,619 | 26,643 |
Operating lease right-of-use assets | 23,870 | |
Deferred tax asset | 40,166 | 38,717 |
Other assets | 897 | 7,691 |
Total assets | 642,690 | 601,859 |
Current liabilities: | ||
Accounts payable | 48,974 | 46,650 |
Accrued liabilities | 39,006 | 31,848 |
Deferred revenue | 5,542 | 5,101 |
Total current liabilities | 93,522 | 83,599 |
Non-current operating lease liabilities | 7,929 | 8,791 |
Non-current operating lease liabilities | 14,784 | |
Other long-term liabilities | 6,829 | 6,742 |
Total liabilities | 123,064 | 99,132 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 5,000 shares authorized; none issued and outstanding at March 31, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.0001 par value; 150,000 shares authorized; 41,530 and 41,024 shares issued at March 31, 2019 and December 31, 2018, respectively | 4 | 4 |
Treasury stock, at cost; 974 shares at March 31, 2019 and December 31, 2018 | (39,712) | (39,712) |
Additional paid-in capital | 369,634 | 360,267 |
Accumulated other comprehensive income (loss) | 183 | (372) |
Retained earnings | 189,517 | 182,540 |
Total stockholders’ equity | 519,626 | 502,727 |
Total liabilities and stockholders’ equity | $ 642,690 | $ 601,859 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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) | 41,530,000 | 41,024,000 |
Treasury stock, at cost (in shares) | 974,000 | 974,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 105,216 | $ 72,941 |
Cost of revenue | 55,374 | 48,870 |
Gross profit | 49,842 | 24,071 |
Operating expenses: | ||
Research and development | 30,953 | 24,445 |
Sales, general and administrative | 15,787 | 14,288 |
Total operating expenses | 46,740 | 38,733 |
Income (loss) from operations | 3,102 | (14,662) |
Other income, net: | ||
Interest income, net | 2,446 | 1,354 |
Other expense, net | (52) | (71) |
Total other income, net | 2,394 | 1,283 |
Income (loss) before benefit for income taxes | 5,496 | (13,379) |
Benefit for income taxes | (1,481) | (4,301) |
Net income (loss) | $ 6,977 | $ (9,078) |
Earnings (loss) per share: | ||
Basic (in USD per share) | $ 0.17 | $ (0.23) |
Diluted (in USD per share) | $ 0.17 | $ (0.23) |
Weighted-average shares used to compute earnings (loss) per share: | ||
Basic (in shares) | 40,284 | 39,836 |
Diluted (in shares) | 41,962 | 39,836 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 6,977 | $ (9,078) |
Other comprehensive income (loss): | ||
Changes in unrealized income (loss) on marketable securities, net of income taxes of $(88) and $88 for the three months ended March 31, 2019 and 2018, respectively | 555 | (402) |
Comprehensive income (loss) | $ 7,532 | $ (9,480) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Changes in unrealized loss on marketable securities, tax | $ (88) | $ 88 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2017 | 39,606 | 0 | ||||
Beginning 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) | 220 | |||||
Exercise of common stock options | 968 | 968 | ||||
Vesting of restricted stock units (in shares) | 214 | |||||
Stock-based compensation expense | 6,514 | 6,514 | ||||
Unrealized gains (losses) on marketable securities, net of tax | (402) | (402) | ||||
Net income (loss) | (9,078) | (9,078) | ||||
Ending balance (in shares) at Mar. 31, 2018 | 40,061 | 0 | ||||
Ending balance at Mar. 31, 2018 | 500,209 | $ 4 | $ 0 | 332,426 | (722) | 168,501 |
Beginning balance (in shares) at Dec. 31, 2018 | 41,024 | 974 | ||||
Beginning balance at Dec. 31, 2018 | $ 502,727 | $ 4 | $ (39,712) | 360,267 | (372) | 182,540 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of common stock options (in shares) | 190 | 190 | ||||
Exercise of common stock options | $ 1,400 | 1,400 | ||||
Vesting of restricted stock units (in shares) | 316 | |||||
Stock-based compensation expense | 7,967 | 7,967 | ||||
Unrealized gains (losses) on marketable securities, net of tax | 555 | 555 | ||||
Net income (loss) | 6,977 | 6,977 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 41,530 | 974 | ||||
Ending balance at Mar. 31, 2019 | $ 519,626 | $ 4 | $ (39,712) | $ 369,634 | $ 183 | $ 189,517 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Changes in unrealized loss on marketable securities, tax | $ 88 |
Effect of adopted accounting standards, tax | $ 51 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 6,977 | $ (9,078) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 3,243 | 3,266 |
Stock-based compensation | 8,008 | 6,538 |
Deferred income taxes | (1,449) | (3,239) |
Non-cash lease expense | 1,074 | |
Other non-cash (benefits) charges | (643) | 45 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 7,440 | 11,837 |
Inventory | (1,201) | 5,076 |
Prepaid expenses and other current assets | 805 | (665) |
Other assets | (96) | 208 |
Accounts payable | 1,658 | (12,105) |
Accrued liabilities | 4,661 | 5,527 |
Deferred revenue | 519 | 3,358 |
Income taxes payable | (862) | (1,829) |
Lease liabilities | (815) | |
Other long-term liabilities | 9 | 121 |
Net cash provided by operating activities | 29,328 | 9,060 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (2,724) | (6,704) |
Purchases of marketable securities | (105,206) | (73,534) |
Sales and maturities of marketable securities | 90,290 | 87,830 |
Deposits | 0 | 20 |
Net cash (used in) provided by investing activities | (17,640) | 7,612 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from the issuance of common stock under stock-based compensation plans | 1,400 | 968 |
Net cash provided by financing activities | 1,400 | 968 |
Net increase in cash and cash equivalents | 13,088 | 17,640 |
Cash and cash equivalents—Beginning of period | 60,444 | 67,495 |
Cash and cash equivalents—End of period | 73,532 | 85,135 |
Supplemental cash flow disclosures: | ||
Cash paid (refunds received) for income taxes, net | 878 | (72) |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right of use assets acquired under operating leases | 3,328 | |
Capital expenditures incurred but not yet paid | $ 862 | $ 1,555 |
NATURE OF THE BUSINESS AND OPER
NATURE OF THE BUSINESS AND OPERATIONS | 3 Months Ended |
Mar. 31, 2019 | |
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’s mission is to deliver 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. By implementing optical interconnect technology in a silicon-based platform, a process the Company refers to as the siliconization of optical interconnect, the Company believes it is leading a disruption that is analogous to the computing industry’s integration of multiple functions into a microprocessor. The Company’s products fall into three product groups: embedded modules, pluggable modules and semiconductors. The Company’s embedded module and pluggable module product groups consist of optical interconnect modules with transmission speeds ranging from 100 to 1,200 gigabits per second (“Gbps”), for use in long-haul, metro and inter-data center markets. The Company’s semiconductor product group consists of its low-power coherent digital signal processor application-specific integrated circuits (“DSP ASICs”) and its silicon photonic integrated circuits (“silicon PICs”) which are either integrated into the Company’s embedded and pluggable modules or sold to customers on a standalone basis for integration into internally developed or other merchant modules. The Company is also developing a 400ZR module that will expand its 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’s modules perform a majority of the digital signal processing and optical functions in optical interconnects and offer low power consumption, high density and high speeds at attractive price points. Through the use of standard interfaces, the Company’s modules can be easily integrated with customers’ network equipment. The advanced software in the Company’s modules enables increased configurability and automation, provides insight into network and connection point characteristics and helps identify network performance problems, all of which increase flexibility and reduce operating costs. The Company is headquartered in Maynard, Massachusetts, and has wholly-owned subsidiaries in North America, Europe and Asia. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The unaudited condensed consolidated financial statements include the accounts of Acacia Communications, Inc. and its Subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. For further information, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , which was filed with the SEC on February 21, 2019. There have been no significant changes in the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K that have had a material impact on the Company’s condensed consolidated financial statements, except for changes as a result of the adoption of Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) (“ASC 842”) as discussed below. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements as of and for the year ended December 31, 2018 , and in management’s opinion, include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s condensed consolidated balance sheet as of March 31, 2019 , its condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018 , its condensed consolidated statements of comprehensive income (loss) for the three months ended March 31, 2019 and 2018 , its condensed consolidated statements of stockholders’ equity for the three months ended March 31, 2019 and 2018 , and its condensed consolidated statements of cash flows for the three months ended March 31, 2019 and 2018 . All intercompany balances and transactions have been eliminated in consolidation. The financial data and the other financial information disclosed in the notes to these condensed consolidated financial statements related to the three months ended March 31, 2019 and 2018 are also unaudited. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full fiscal year or any other period. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASC 842 which requires lessees to recognize a right-of-use (“ROU”) asset and lease liability on the balance sheet for virtually all leases. From a lessee perspective, ASC 842 retains a dual model requiring leases to be classified as either operating or financing leases for the income statement. Operating leases will result in straight-line expense, and financing leases will have a front-loaded expense pattern with an interest expense component. On January 1, 2019, the Company adopted ASC 842 and all related amendments using the modified retrospective approach and the effective date as the date of initial application. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Adoption of the new standard resulted in the recording of lease ROU assets and lease liabilities of approximately $21.5 million and $16.0 million , respectively, as of January 1, 2019. The difference between the ROU assets and lease liabilities relates to deferred and prepaid rent balances which are now included as part of the ROU assets. The standard did not materially impact the Company’s condensed consolidated income statements. In accordance with ASC 842, the Company determines if an arrangement is a lease at inception based on whether there is an identified asset, whether the Company has the right to obtain substantially all of the economic benefits from use of the asset and whether the Company has the right to direct the use of the asset. Currently, the Company only has operating leases and does not have any financing leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. See Note 8, Leases, for further disclosures and detail regarding our operating leases. 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 condensed consolidated financial statements. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The opening and closing balances of the Company’s deferred revenue and accounts receivable for the three months ended March 31, 2019 are as follows (in thousands): Balance at Beginning of Period (Decrease) / Increase Balance at End of Period Three Months Ended March 31, 2019 Accounts receivable $ 90,831 (7,440 ) $ 83,391 Deferred revenue (current) $ 5,101 441 $ 5,542 Deferred revenue (non-current) $ 3,707 79 $ 3,786 The amounts of revenue recognized in the period that were included in the opening deferred revenue balance was immaterial for the three months ended March 31, 2019 . 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 condensed consolidated balance sheet. 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 March 31, 2019 was $1.9 million . Disaggregation of Revenue The following table provides information about disaggregated revenue based on product group (in thousands). Further disaggregation of revenue by geographic country can be found in Note 14. Three Months Ended As a % of Three Months Ended As a % of March 31, 2019 Total Revenue March 31, 2018 Total Revenue Embedded modules $ 17,426 16 % $ 23,030 31 % Pluggable modules 55,517 53 % 31,980 44 % Semiconductors 32,273 31 % 17,931 25 % Total revenue $ 105,216 100 % $ 72,941 100 % |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Gross Unrealized Losses Amortized Cost Gains Less than One Year Greater than One Year Estimated Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 52,353 $ — $ — $ — $ 52,353 $ 52,353 $ — Money market funds 3,542 — — — 3,542 3,542 — U.S. treasury bonds 72,717 23 (4 ) (1 ) 72,735 10,295 62,440 Commercial paper 54,448 9 (1 ) — 54,456 5,216 49,240 Certificates of deposit 28,318 30 (1 ) — 28,347 — 28,347 Asset-backed securities 57,771 39 (1 ) (17 ) 57,792 — 57,792 Corporate debt securities 159,888 183 (10 ) (44 ) 160,017 2,126 157,891 Total $ 429,037 $ 284 $ (17 ) $ (62 ) $ 429,242 $ 73,532 $ 355,710 December 31, 2018 Gross Unrealized Amortized Cost Losses Estimated Fair Value Cash and Cash Equivalents Marketable Securities Gains 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 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): Three Months Ended March 31, 2019 2018 Proceeds from the sales and maturities of marketable securities $ 90,290 $ 87,830 Realized gains $ 3 $ 4 Realized losses $ (2 ) $ (2 ) The contractual maturities of short-term and long-term marketable securities held at March 31, 2019 and December 31, 2018 are as follows (in thousands): March 31, 2019 December 31, 2018 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value Due within one year $ 265,810 $ 265,899 $ 264,959 $ 264,660 Due after one year through four years 89,693 89,811 74,902 74,764 Total $ 355,503 $ 355,710 $ 339,861 $ 339,424 As of March 31, 2019 , the Company believed that any 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 | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Raw materials $ 17,995 $ 18,420 Work-in-process 426 218 Finished goods 8,291 6,873 Inventory $ 26,712 $ 25,511 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 as of March 31, 2019 which was immaterial in amount. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Engineering laboratory equipment $ 51,682 $ 50,590 Computer software 3,304 3,132 Computer equipment 6,512 6,018 Furniture and fixtures 3,525 3,227 Leasehold improvements 3,644 3,581 Construction in progress 2,335 1,279 Total property and equipment 71,002 67,827 Less: Accumulated depreciation (44,383 ) (41,184 ) Property and equipment, net $ 26,619 $ 26,643 Depreciation expense was $3.2 million and $3.3 million for the three months ended March 31, 2019 and 2018 , respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Employee-related liabilities $ 8,242 $ 8,509 Current maturities of operating leases 3,922 — Goods and services received not invoiced 2,657 3,592 Accrued manufacturing related expenses 2,784 2,342 Warranty reserve 9,517 8,220 Legal settlement accrual 6,000 2,500 Other accrued liabilities 5,884 6,685 Accrued liabilities $ 39,006 $ 31,848 Certain prior period amounts have been reclassified to conform to the current period presentation. Specifically, as of December 31, 2018 , $2.5 million of legal settlement accruals were included within “Other accrued liabilities” and have now been reclassified to be presented on a separate line in conformity with the current period presentation. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company adopted ASC 842 effective January 1, 2019 using the modified retrospective approach and the effective date as the date of initial application. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allows the carry forward of the Company’s historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. As permitted by ASC 842, the Company has also elected not to apply the recognition requirements to short-term leases (with terms less than 12 months) and not to separate nonlease components from associated lease components for its real estate lease assets. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company leases real estate assets and equipment. For leases with terms greater than 12 months, the Company records the related ROU asset and lease obligation at the present value of lease payments over the term. Many leases include fixed rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. The Company’s leases do not usually provide a readily determinable implicit rate; therefore, an estimate of the Company’s incremental borrowing rate is used to discount the lease payments based on information available at lease commencement, including observable rates, adjusted for various factors including financing spreads and other lease specific adjustments, as applicable. The Company’s leases have remaining lease terms of one year to six years . Some leases include one or more options to renew with renewal terms that can extend the lease term from two years to ten years , or options to terminate the leases, both at the Company’s discretion. The Company’s lease terms do not include options to extend or terminate leases because the Company was not reasonably certain that it would exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company’s lease agreements do not contain any variable lease payments, material residual value guarantees or material restrictive covenants. The table below presents the lease-related assets and liabilities recorded on the condensed consolidated balance sheet as of March 31, 2019 (in thousands): Classification on the Balance Sheet March 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 23,870 Liabilities Current - operating Accrued liabilities 3,922 Noncurrent - operating Noncurrent operating lease liabilities 14,784 Total lease liabilities $ 18,706 Weighted-average remaining lease term - operating leases 5.3 years Weighted-average discount rate - operating leases (1) 4.69 % (1) Upon adoption of ASC 842, discount rates used for existing leases were established at January 1, 2019, which was the date of initial application of ASC 842. Operating lease costs during the three months ended March 31, 2019 were $1.2 million . Short-term lease costs during the three months ended March 31, 2019 were insignificant. Cash paid for amounts included in the measurement of lease liabilities during the three months ended March 31, 2019 was $1.0 million which is an operating cash outflow. The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of March 31, 2019 (in thousands): Operating Leases Remaining 2019 $ 2,998 2020 4,056 2021 3,819 2022 3,622 2023 3,756 Thereafter 3,025 Total minimum lease payments 21,276 Less: amount of lease payments representing interest (2,570 ) Present value of future minimum lease payments 18,706 Less: current obligation under leases 3,922 Long-term lease obligations $ 14,784 As of March 31, 2019 , the Company entered into a lease amendment that has not yet commenced which requires additional future payments of $4.7 million . This lease amendment is expected to commence in the second quarter of 2019, with a lease term of eight years . Disclosures related to periods prior to adoption of ASC 842 Rent expense for the three months ended March 31, 2018 was $1.2 million , recognized on a straight-line basis for the Company’s facility leases which were accounted for as operating leases. Future minimum lease payments due under those non-cancelable lease agreements as of December 31, 2018 were 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 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended |
Mar. 31, 2019 | |
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, 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, and 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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets: Money market funds $ — $ 3,542 $ — $ 3,542 U.S. treasury bonds — 72,735 — 72,735 Commercial paper — 54,456 — 54,456 Certificates of deposit — 28,347 — 28,347 Asset-backed securities — 57,792 — 57,792 Corporate debt securities — 160,017 — 160,017 Total $ — $ 376,889 $ — $ 376,889 December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value 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 There were no transfers between fair value measurement levels during the three months ended March 31, 2019 or 2018 . 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. |
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2019 | |
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 condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Cost of revenue $ 520 $ 521 Research and development 4,746 3,788 Sales, general and administrative 2,742 2,229 Total stock-based compensation $ 8,008 $ 6,538 The following table summarizes stock-based compensation expense by award type for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Stock options $ 577 $ 601 Restricted stock units 7,081 5,595 Employee stock purchase plan 309 298 Other awards 41 44 Total stock-based compensation $ 8,008 $ 6,538 Stock Options A summary of stock option activity under the Company’s equity incentive plans for the three months ended March 31, 2019 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, 2018 1,116 $ 9.78 5.7 $ 33,113 Granted — $ — Exercised (190 ) $ 7.36 $ 8,348 Cancelled (5 ) $ 22.19 Outstanding at March 31, 2019 921 $ 10.22 5.4 $ 44,209 Vested and expected to vest at: March 31, 2019 921 $ 10.22 5.4 $ 44,209 December 31, 2018 1,116 $ 9.78 5.7 $ 33,113 Exercisable at: March 31, 2019 735 $ 7.86 5.0 $ 36,886 December 31, 2018 837 $ 7.38 5.3 $ 26,544 As of March 31, 2019 and December 31, 2018 , there was $1.8 million and $2.5 million , respectively, of unrecognized compensation cost related to unvested common stock options which is expected to be recognized over weighted-average periods of 1.0 year and 1.1 years, respectively. No stock option awards were issued by the Company during the three months ended March 31, 2019 or 2018 . Restricted Stock Units During the three months ended March 31, 2019 , the Company granted approximately 403,000 restricted stock units (“RSUs”) to employees and executives under the 2016 Equity Incentive Plan that vest upon the satisfaction of a service condition, generally over four years. The cost of any RSUs with only a service condition is determined using the fair value of the Company’s common stock on the date of grant, and compensation is recognized on a ratable basis over the requisite vesting period. During the three months ended March 31, 2019 , the Company granted awards covering up to a maximum of 187,234 performance-based RSUs to executive officers that include a market condition in addition to a service condition (“performance-based RSUs” or “PRSUs”). Each PRSU represents the right to receive one share of the Company’s common stock when and if the applicable vesting conditions are satisfied. The PRSUs are subject to performance-based vesting. The number of 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, 2019 through December 31, 2021, as determined and certified by the Compensation Committee of the 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 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 PRSUs will vest unless a threshold level of achievement of the Relative TSR Objective is achieved. The Company estimated the fair value of the PRSUs using a Monte Carlo valuation model on the date of grant, using the following assumptions: Risk-free interest rate 2.5% Expected dividend yield None Expected volatility 57.3% Expected term (in years) 2.9 Grant date fair value of underlying shares $44.43 As soon as practicable following each vesting date of RSUs, including PRSUs, 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. To date, the Company has not settled any vested RSUs with cash. A summary of the changes in the Company’s RSUs during the three months ended March 31, 2019 is as follows: RSUs (in thousands) Weighted-Average Grant Date Fair Value Outstanding at December 31, 2018 2,325 $ 40.55 Granted 590 $ 51.68 Vested (316 ) $ 35.93 Cancelled (468 ) $ 57.12 Outstanding at March 31, 2019 2,131 $ 40.68 The granted amount includes the PRSUs described above, which were granted to executives during the three months ended March 31, 2019 . As of March 31, 2019 and December 31, 2018 , there was $70.2 million and $52.5 million , respectively, of total unrecognized compensation cost related to unvested RSUs which is expected to be recognized over weighted-average periods of 2.4 years and 1.9 years, respectively. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended March 31, 2019 2018 Numerator: Net income (loss) $ 6,977 $ (9,078 ) Denominator: Weighted-average shares used to compute net income (loss) per share - basic 40,284 39,836 Dilutive effect of stock options, unvested restricted stock and restricted stock units and employee stock purchase plan 1,678 — Weighted-average shares used to compute net income (loss) per share - diluted 41,962 39,836 Net income (loss) per share Basic $ 0.17 $ (0.23 ) Diluted $ 0.17 $ (0.23 ) The following common stock equivalents (in thousands) were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been antidilutive: Three Months Ended March 31, 2019 2018 Options to purchase common stock 49 1,218 Unvested restricted stock units and awards 176 1,445 Employee stock purchase plan — 3 As discussed further in Note 10, in the three months ended March 31, 2019 , the Company granted a maximum of 187,234 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 March 31, 2019 for these, and all outstanding PRSUs with a market condition, have been included in the tables above. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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. Changes in the Company’s warranty liability, which is included as a component of accrued liabilities on the condensed consolidated balance sheets, are set forth in the table below (in thousands): Three Months Ended March 31, 2019 2018 Warranty reserve, beginning of period $ 8,220 $ 8,306 Provisions made to warranty reserve during the period 5,026 3,463 Charges against warranty reserve during the period (3,729 ) (4,351 ) Warranty reserve, end of period $ 9,517 $ 7,418 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. On March 22, 2019, a summary judgment hearing took place in California Superior Court, County of San Diego, North County Division. Both the Company’s and ViaSat’s summary judgment motions were denied in April 2019. At the court’s direction, the parties are participating in a mandatory settlement process, but no resolution has been reached. Trial is scheduled for June 2019. 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, the Company may conduct and complete certain non-party discovery as provided in the court’s order. 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. The Company intends to continue to engage in a vigorous defense and pursuit of Company favorable judgments of the ongoing litigation matters 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. The ultimate resolution of these proceedings may have a material adverse effect on the Company’s results of operations and cash flows, potentially in the near term. In addition, the timing of the final resolution of these proceedings is uncertain. The Company will continue to 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. As of March 31, 2019, the Company has accrued a total of $6.0 million in litigation and settlement-related reserves. The amount of such reserves is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties, which may change quickly and significantly from time to time. As a result, actual losses could significantly exceed the amount of such reserves, and no conclusion as to the Company’s ultimate exposure from these proceedings should be drawn from such reserves. As previously disclosed, four purported shareholder derivative lawsuits were filed against certain of the Company’s directors and executive officers (and the Company as a nominal defendant) between the fourth quarter of 2017 and the first quarter of 2018, and a lawsuit was filed against the Company seeking to inspect certain of its books and records pursuant to 8 Del. C. §220 in the second quarter of 2018. The parties to these proceedings reached a settlement of these matters, subject to court approval. On September 14, 2018, the parties in such proceedings 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 the Company’s 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 approximately $0.7 million and an agreed immaterial expense award. A portion of the fee and expense awards has been 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. No notice of appeal was filed. 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 three months ended March 31, 2019 and 2018 , 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 March 31, 2019 and December 31, 2018 , no amounts have been accrued related to such indemnification provisions. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. As a result of the concept of “deemed distributions” under the U.S. Tax Cuts and Jobs Act, the impact of global intangible low-tax income (“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’s tax provision for interim periods has historically been determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter. The Company’s quarterly tax (benefit) provision, and its quarterly estimate of its annual effective tax rate, are subject to significant volatility due to several factors, including the Company’s ability to accurately predict its pre-tax income and loss in multiple jurisdictions, as well as the portions of stock-based compensation that will either not generate tax benefits or the tax benefit is unpredictable and reflected when realized by employees. For the three months ended March 31, 2019 , the Company recorded a benefit from income taxes of $1.5 million as compared to $4.3 million for the three months ended March 31, 2018 , resulting in an effective tax rate of (26.9)% and 32.1% for the three months ended March 31, 2019 and 2018 , respectively. The benefit from income taxes recorded in the three months ended March 31, 2019 and 2018 were primarily a result of the recognition of excess tax benefits from the taxable compensation on share-based awards recognized in the respective periods, as well as federal and state research and development credits. The Company’s historical (benefit) provision for income taxes is not necessarily reflective of its future tax provisions or results of operations. 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. As of March 31, 2019 and December 31, 2018 , the Company identified $5.1 million and $5.0 million , respectively, of gross uncertain tax positions. Included in those balances as of March 31, 2019 and December 31, 2018 are $3.0 million and $3.0 million , respectively, of tax benefits that, if recognized, would impact the effective tax rate. These have been accrued for as long-term liabilities on the Company’s condensed consolidated balance sheets. The Company’s existing tax positions are expected to continue to generate an increase in unrecognized tax benefits in subsequent periods. The Company’s policy is to record interest and penalties related to unrecognized tax benefits as income tax expense. During the three months ended March 31, 2019 and 2018 , the amounts recorded related to interest and penalties were immaterial in each period. |
SEGMENT INFORMATION AND GEOGRAP
SEGMENT INFORMATION AND GEOGRAPHIC DATA | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND GEOGRAPHIC DATA | SEGMENT INFORMATION AND GEOGRAPHIC DATA The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker (“CODM”), which is the Company’s president and chief executive officer, in deciding how to allocate resources and assess performance. The CODM evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the condensed consolidated financial statements. Revenue by 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): Three Months Ended March 31, 2019 2018 United States $ 12,340 $ 9,427 China 42,887 22,083 Germany 10,833 19,746 Thailand 23,681 7,119 Other 15,475 14,566 Total revenue $ 105,216 $ 72,941 Total long-lived assets by country consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 United States $ 18,748 $ 18,123 Thailand 3,567 4,147 China 1,429 1,703 Other 2,875 2,670 Total long-lived assets $ 26,619 $ 26,643 |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, 2019 2018 A 31 % 20 % B 10 % 17 % C 10 % 20 % (1) E 18 % * * Less than 10% of revenue in the period indicated (1) Customer C was acquired by one of the Company’s other customers on October 1, 2018. Pro forma revenue for the combined customer would have been 22% for the three months ended March 31, 2018 . Customers, which include their authorized contract manufacturers, that accounted for equal to or greater than 10% of accounts receivable at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 A 26 % 30 % B * 13 % D * 10 % F 20 % 17 % * Less than 10% of accounts receivable at the date indicated Supplier Concentration The Company’s most significant vendor spending is related to purchases from contract manufacturers and component suppliers located in China and Thailand, from which the Company purchases a substantial portion of its inventory. For the three months ended March 31, 2019 and 2018 , total purchases from each of the suppliers were as follows: Three Months Ended March 31, 2019 2018 X 18 % 22 % Y 56 % 48 % The Company also outsources certain engineering projects to vendors located throughout the world. Total research and development costs incurred with one vendor were 15% during the three months ended March 31, 2019 , and were 12% during the three months ended March 31, 2018 . |
RELATED PARTIES
RELATED PARTIES | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES One of the members of the Company’s board of 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 $0.9 million and $0.7 million during the three months ended March 31, 2019 and 2018 , 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 $0.3 million costs were incurred during the three months ended March 31, 2019 and $0.5 million of costs were incurred during the three months ended March 31, 2018 . One of the members of the Company’s board of 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 no purchases and $0.3 million of purchases from MACOM during the three months ended March 31, 2019 and 2018 , respectively. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASC 842 which requires lessees to recognize a right-of-use (“ROU”) asset and lease liability on the balance sheet for virtually all leases. From a lessee perspective, ASC 842 retains a dual model requiring leases to be classified as either operating or financing leases for the income statement. Operating leases will result in straight-line expense, and financing leases will have a front-loaded expense pattern with an interest expense component. On January 1, 2019, the Company adopted ASC 842 and all related amendments using the modified retrospective approach and the effective date as the date of initial application. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Adoption of the new standard resulted in the recording of lease ROU assets and lease liabilities of approximately $21.5 million and $16.0 million , respectively, as of January 1, 2019. The difference between the ROU assets and lease liabilities relates to deferred and prepaid rent balances which are now included as part of the ROU assets. The standard did not materially impact the Company’s condensed consolidated income statements. In accordance with ASC 842, the Company determines if an arrangement is a lease at inception based on whether there is an identified asset, whether the Company has the right to obtain substantially all of the economic benefits from use of the asset and whether the Company has the right to direct the use of the asset. Currently, the Company only has operating leases and does not have any financing leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. See Note 8, Leases, for further disclosures and detail regarding our operating leases. 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 condensed consolidated financial statements. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 for the three months ended March 31, 2019 are as follows (in thousands): Balance at Beginning of Period (Decrease) / Increase Balance at End of Period Three Months Ended March 31, 2019 Accounts receivable $ 90,831 (7,440 ) $ 83,391 Deferred revenue (current) $ 5,101 441 $ 5,542 Deferred revenue (non-current) $ 3,707 79 $ 3,786 |
Schedule of Disaggregation of Revenue | The following table provides information about disaggregated revenue based on product group (in thousands). Further disaggregation of revenue by geographic country can be found in Note 14. Three Months Ended As a % of Three Months Ended As a % of March 31, 2019 Total Revenue March 31, 2018 Total Revenue Embedded modules $ 17,426 16 % $ 23,030 31 % Pluggable modules 55,517 53 % 31,980 44 % Semiconductors 32,273 31 % 17,931 25 % Total revenue $ 105,216 100 % $ 72,941 100 % |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Gross Unrealized Losses Amortized Cost Gains Less than One Year Greater than One Year Estimated Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 52,353 $ — $ — $ — $ 52,353 $ 52,353 $ — Money market funds 3,542 — — — 3,542 3,542 — U.S. treasury bonds 72,717 23 (4 ) (1 ) 72,735 10,295 62,440 Commercial paper 54,448 9 (1 ) — 54,456 5,216 49,240 Certificates of deposit 28,318 30 (1 ) — 28,347 — 28,347 Asset-backed securities 57,771 39 (1 ) (17 ) 57,792 — 57,792 Corporate debt securities 159,888 183 (10 ) (44 ) 160,017 2,126 157,891 Total $ 429,037 $ 284 $ (17 ) $ (62 ) $ 429,242 $ 73,532 $ 355,710 December 31, 2018 Gross Unrealized Amortized Cost Losses Estimated Fair Value Cash and Cash Equivalents Marketable Securities Gains 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 |
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): Three Months Ended March 31, 2019 2018 Proceeds from the sales and maturities of marketable securities $ 90,290 $ 87,830 Realized gains $ 3 $ 4 Realized losses $ (2 ) $ (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 March 31, 2019 and December 31, 2018 are as follows (in thousands): March 31, 2019 December 31, 2018 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value Due within one year $ 265,810 $ 265,899 $ 264,959 $ 264,660 Due after one year through four years 89,693 89,811 74,902 74,764 Total $ 355,503 $ 355,710 $ 339,861 $ 339,424 |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Raw materials $ 17,995 $ 18,420 Work-in-process 426 218 Finished goods 8,291 6,873 Inventory $ 26,712 $ 25,511 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Engineering laboratory equipment $ 51,682 $ 50,590 Computer software 3,304 3,132 Computer equipment 6,512 6,018 Furniture and fixtures 3,525 3,227 Leasehold improvements 3,644 3,581 Construction in progress 2,335 1,279 Total property and equipment 71,002 67,827 Less: Accumulated depreciation (44,383 ) (41,184 ) Property and equipment, net $ 26,619 $ 26,643 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Employee-related liabilities $ 8,242 $ 8,509 Current maturities of operating leases 3,922 — Goods and services received not invoiced 2,657 3,592 Accrued manufacturing related expenses 2,784 2,342 Warranty reserve 9,517 8,220 Legal settlement accrual 6,000 2,500 Other accrued liabilities 5,884 6,685 Accrued liabilities $ 39,006 $ 31,848 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases, Balance Sheet Classification of Lease Assets and Liabilities | The table below presents the lease-related assets and liabilities recorded on the condensed consolidated balance sheet as of March 31, 2019 (in thousands): Classification on the Balance Sheet March 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 23,870 Liabilities Current - operating Accrued liabilities 3,922 Noncurrent - operating Noncurrent operating lease liabilities 14,784 Total lease liabilities $ 18,706 Weighted-average remaining lease term - operating leases 5.3 years Weighted-average discount rate - operating leases (1) 4.69 % (1) Upon adoption of ASC 842, discount rates used for existing leases were established at January 1, 2019, which was the date of initial application of ASC 842. |
Maturities of Operating Lease Liabilities | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of March 31, 2019 (in thousands): Operating Leases Remaining 2019 $ 2,998 2020 4,056 2021 3,819 2022 3,622 2023 3,756 Thereafter 3,025 Total minimum lease payments 21,276 Less: amount of lease payments representing interest (2,570 ) Present value of future minimum lease payments 18,706 Less: current obligation under leases 3,922 Long-term lease obligations $ 14,784 Future minimum lease payments due under those non-cancelable lease agreements as of December 31, 2018 were 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 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets: Money market funds $ — $ 3,542 $ — $ 3,542 U.S. treasury bonds — 72,735 — 72,735 Commercial paper — 54,456 — 54,456 Certificates of deposit — 28,347 — 28,347 Asset-backed securities — 57,792 — 57,792 Corporate debt securities — 160,017 — 160,017 Total $ — $ 376,889 $ — $ 376,889 December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value 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 |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Cost of revenue $ 520 $ 521 Research and development 4,746 3,788 Sales, general and administrative 2,742 2,229 Total stock-based compensation $ 8,008 $ 6,538 |
Schedule of Stock-Based Compensation Expense by Award Type | The following table summarizes stock-based compensation expense by award type for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Stock options $ 577 $ 601 Restricted stock units 7,081 5,595 Employee stock purchase plan 309 298 Other awards 41 44 Total stock-based compensation $ 8,008 $ 6,538 |
Stock Option Activity | A summary of stock option activity under the Company’s equity incentive plans for the three months ended March 31, 2019 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, 2018 1,116 $ 9.78 5.7 $ 33,113 Granted — $ — Exercised (190 ) $ 7.36 $ 8,348 Cancelled (5 ) $ 22.19 Outstanding at March 31, 2019 921 $ 10.22 5.4 $ 44,209 Vested and expected to vest at: March 31, 2019 921 $ 10.22 5.4 $ 44,209 December 31, 2018 1,116 $ 9.78 5.7 $ 33,113 Exercisable at: March 31, 2019 735 $ 7.86 5.0 $ 36,886 December 31, 2018 837 $ 7.38 5.3 $ 26,544 |
Weighted-Average Assumptions Used to Estimate Fair Value | The Company estimated the fair value of the PRSUs using a Monte Carlo valuation model on the date of grant, using the following assumptions: Risk-free interest rate 2.5% Expected dividend yield None Expected volatility 57.3% Expected term (in years) 2.9 Grant date fair value of underlying shares $44.43 |
Summary of Changes in Company's RSU | A summary of the changes in the Company’s RSUs during the three months ended March 31, 2019 is as follows: RSUs (in thousands) Weighted-Average Grant Date Fair Value Outstanding at December 31, 2018 2,325 $ 40.55 Granted 590 $ 51.68 Vested (316 ) $ 35.93 Cancelled (468 ) $ 57.12 Outstanding at March 31, 2019 2,131 $ 40.68 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net (Loss) Income Per Share | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended March 31, 2019 2018 Numerator: Net income (loss) $ 6,977 $ (9,078 ) Denominator: Weighted-average shares used to compute net income (loss) per share - basic 40,284 39,836 Dilutive effect of stock options, unvested restricted stock and restricted stock units and employee stock purchase plan 1,678 — Weighted-average shares used to compute net income (loss) per share - diluted 41,962 39,836 Net income (loss) per share Basic $ 0.17 $ (0.23 ) Diluted $ 0.17 $ (0.23 ) |
Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Income (Loss) Per Share | The following common stock equivalents (in thousands) were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been antidilutive: Three Months Ended March 31, 2019 2018 Options to purchase common stock 49 1,218 Unvested restricted stock units and awards 176 1,445 Employee stock purchase plan — 3 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Product Warrant Liability | Changes in the Company’s warranty liability, which is included as a component of accrued liabilities on the condensed consolidated balance sheets, are set forth in the table below (in thousands): Three Months Ended March 31, 2019 2018 Warranty reserve, beginning of period $ 8,220 $ 8,306 Provisions made to warranty reserve during the period 5,026 3,463 Charges against warranty reserve during the period (3,729 ) (4,351 ) Warranty reserve, end of period $ 9,517 $ 7,418 |
SEGMENT INFORMATION AND GEOGR_2
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Country | Revenue by 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): Three Months Ended March 31, 2019 2018 United States $ 12,340 $ 9,427 China 42,887 22,083 Germany 10,833 19,746 Thailand 23,681 7,119 Other 15,475 14,566 Total revenue $ 105,216 $ 72,941 |
Summary of Total Long-Lived Assets by Country | Total long-lived assets by country consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 United States $ 18,748 $ 18,123 Thailand 3,567 4,147 China 1,429 1,703 Other 2,875 2,670 Total long-lived assets $ 26,619 $ 26,643 |
CONCENTRATIONS OF RISK (Tables)
CONCENTRATIONS OF RISK (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Summary of Concentrations of Risk | Customers with revenue equal to or greater than 10% of total revenue for the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, 2019 2018 A 31 % 20 % B 10 % 17 % C 10 % 20 % (1) E 18 % * * Less than 10% of revenue in the period indicated (1) Customer C was acquired by one of the Company’s other customers on October 1, 2018. Pro forma revenue for the combined customer would have been 22% for the three months ended March 31, 2018 . Customers, which include their authorized contract manufacturers, that accounted for equal to or greater than 10% of accounts receivable at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 A 26 % 30 % B * 13 % D * 10 % F 20 % 17 % * Less than 10% of accounts receivable at the date indicated For the three months ended March 31, 2019 and 2018 , total purchases from each of the suppliers were as follows: Three Months Ended March 31, 2019 2018 X 18 % 22 % Y 56 % 48 % |
NATURE OF THE BUSINESS AND OP_2
NATURE OF THE BUSINESS AND OPERATIONS (Details) | 3 Months Ended |
Mar. 31, 2019GB | |
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |
Optical interconnect modules transmission speed | 400 |
Minimum | |
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |
Optical interconnect modules transmission speed | 100 |
Maximum | |
Organization Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |
Optical interconnect modules transmission speed | 1,200 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Operating lease right-of-use assets | $ 23,870 | |
Non-current operating lease liabilities | $ 18,706 | |
ASU 2016-02 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Operating lease right-of-use assets | $ 21,500 | |
Non-current operating lease liabilities | $ 16,000 |
REVENUE - Deferred Revenue and
REVENUE - Deferred Revenue and Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable | $ 83,391 | $ 90,831 | |
Deferred revenue (current) | 5,542 | 5,101 | |
Deferred revenue (non-current) | 3,786 | $ 3,707 | |
(Decrease) / Increase, Accounts Receivable | (7,440) | $ (11,837) | |
(Decrease) / Increase, Deferred Revenue (Current) | 441 | ||
(Decrease) / Increase, Deferred Revenue (Non-current) | $ 79 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Capitalized contracts | $ 1.9 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 105,216 | $ 72,941 |
Revenue, as a % of Total Revenue | 100.00% | 100.00% |
Embedded modules | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 17,426 | $ 23,030 |
Revenue, as a % of Total Revenue | 16.00% | 31.00% |
Pluggable modules | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 55,517 | $ 31,980 |
Revenue, as a % of Total Revenue | 53.00% | 44.00% |
Semiconductors | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 32,273 | $ 17,931 |
Revenue, as a % of Total Revenue | 31.00% | 25.00% |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Cash, Cash Equivalents and Short- and Long-term Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | $ 429,037 | $ 400,306 |
Gross Unrealized Gains | 284 | 23 |
Gross Unrealized Losses Less than One Year | (17) | (336) |
Gross Unrealized Losses Greater than One Year | (62) | (125) |
Estimated Fair Value | 429,242 | 399,868 |
Cash and Cash Equivalents | 73,532 | 60,444 |
Marketable Securities | 355,710 | 339,424 |
U.S. treasury bonds | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 72,717 | 40,367 |
Gross Unrealized Gains | 23 | 0 |
Gross Unrealized Losses Less than One Year | (4) | (9) |
Gross Unrealized Losses Greater than One Year | (1) | (3) |
Estimated Fair Value | 72,735 | 40,355 |
Cash and Cash Equivalents | 10,295 | 0 |
Marketable Securities | 62,440 | 40,355 |
Commercial paper | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 54,448 | 60,435 |
Gross Unrealized Gains | 9 | 0 |
Gross Unrealized Losses Less than One Year | (1) | (13) |
Gross Unrealized Losses Greater than One Year | 0 | 0 |
Estimated Fair Value | 54,456 | 60,422 |
Cash and Cash Equivalents | 5,216 | 6,668 |
Marketable Securities | 49,240 | 53,754 |
Certificates of deposit | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 28,318 | 36,839 |
Gross Unrealized Gains | 30 | 13 |
Gross Unrealized Losses Less than One Year | (1) | (12) |
Gross Unrealized Losses Greater than One Year | 0 | 0 |
Estimated Fair Value | 28,347 | 36,840 |
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | 28,347 | 36,840 |
Asset-backed securities | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 57,771 | 47,798 |
Gross Unrealized Gains | 39 | 1 |
Gross Unrealized Losses Less than One Year | (1) | (63) |
Gross Unrealized Losses Greater than One Year | (17) | (22) |
Estimated Fair Value | 57,792 | 47,714 |
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | 57,792 | 47,714 |
Corporate debt securities | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 159,888 | 163,654 |
Gross Unrealized Gains | 183 | 9 |
Gross Unrealized Losses Less than One Year | (10) | (239) |
Gross Unrealized Losses Greater than One Year | (44) | (100) |
Estimated Fair Value | 160,017 | 163,324 |
Cash and Cash Equivalents | 2,126 | 2,563 |
Marketable Securities | 157,891 | 160,761 |
Cash | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 52,353 | 49,650 |
Estimated Fair Value | 52,353 | 49,650 |
Cash and Cash Equivalents | 52,353 | 49,650 |
Marketable Securities | 0 | 0 |
Money market funds | ||
Schedule Of Cash Cash Equivalents And Marketable Securities [Line Items] | ||
Amortized Cost | 3,542 | 1,563 |
Estimated Fair Value | 3,542 | 1,563 |
Cash and Cash Equivalents | 3,542 | 1,563 |
Marketable Securities | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Proceed
FINANCIAL INSTRUMENTS - Proceeds from Sales and Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from the sales and maturities of marketable securities | $ 90,290 | $ 87,830 |
Realized gains | 3 | 4 |
Realized losses | $ (2) | $ (2) |
FINANCIAL INSTRUMENTS - Contrac
FINANCIAL INSTRUMENTS - Contractual Maturities of Short-term and Long-term Marketable Securities Held (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost Basis | ||
Due within one year | $ 265,810 | $ 264,959 |
Due after one year through four years | 89,693 | 74,902 |
Amortized Cost Basis | 355,503 | 339,861 |
Aggregate Fair Value | ||
Due within one year | 265,899 | 264,660 |
Due after one year through four years | 89,811 | 74,764 |
Aggregate Fair Value | $ 355,710 | $ 339,424 |
INVENTORY - Schedule of Invento
INVENTORY - Schedule of Inventory (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 17,995 | $ 18,420 | |
Work-in-process | 426 | 218 | |
Finished goods | 8,291 | 6,873 | |
Inventory | $ 26,712 | $ 25,511 | |
Inventory write-offs | $ 3,900 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 71,002 | $ 67,827 |
Less: Accumulated depreciation | (44,383) | (41,184) |
Property and equipment, net | 26,619 | 26,643 |
Engineering laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 51,682 | 50,590 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,304 | 3,132 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,512 | 6,018 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,525 | 3,227 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,644 | 3,581 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,335 | $ 1,279 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 3,243 | $ 3,266 |
ACCRUED LIABILITIES - Schedule
ACCRUED LIABILITIES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||||
Employee-related liabilities | $ 8,242 | $ 8,509 | ||
Current maturities of operating leases | 3,922 | |||
Goods and services received not invoiced | 2,657 | 3,592 | ||
Accrued manufacturing related expenses | 2,784 | 2,342 | ||
Warranty reserve | 9,517 | 8,220 | $ 7,418 | $ 8,306 |
Legal settlement accrual | 6,000 | 2,500 | ||
Other accrued liabilities | 5,884 | 6,685 | ||
Accrued liabilities | $ 39,006 | $ 31,848 |
LEASES - Balance Sheet Classifi
LEASES - Balance Sheet Classification of Lease Assets and Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 23,870 |
Operating lease, liability, current | 3,922 |
Non-current operating lease liabilities | 14,784 |
Total lease liabilities | $ 18,706 |
Weighted-average remaining lease term - operating leases | 5 years 3 months 18 days |
Weighted-average discount rate - operating leases | 4.69% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, cost | $ 1.2 | |
Lease liabilities | 1 | |
Operating leases, future minimum payments due | $ 4.7 | |
Operating lease not yet commenced, term | 8 years | |
Operating leases rent expense | $ 1.2 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Renewal term | 2 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 6 years | |
Renewal term | 10 years |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Leases Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Leases, After Adoption of 842 | ||
Remaining 2019 | $ 2,998 | |
2020 | 4,056 | |
2021 | 3,819 | |
2022 | 3,622 | |
2023 | 3,756 | |
Thereafter | 3,025 | |
Total minimum lease payments | 21,276 | |
Amount of lease payments representing interest | (2,570) | |
Total lease liabilities | 18,706 | |
Operating lease, liability, current | 3,922 | |
Non-current operating lease liabilities | $ 14,784 | |
Operating Leases, Before Adoption of 842 | ||
Remaining 2019 | $ 3,888 | |
2020 | 4,280 | |
2021 | 4,394 | |
2022 | 4,248 | |
2023 | 4,401 | |
Thereafter | 5,252 | |
Total | $ 26,463 |
FAIR VALUE MEASUREMENT - Summar
FAIR VALUE MEASUREMENT - Summary of Assets And Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 376,889 | $ 350,218 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 376,889 | 350,218 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
U.S. treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 72,735 | 40,355 |
U.S. treasury bonds | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
U.S. treasury bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 72,735 | 40,355 |
U.S. treasury bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 54,456 | 60,422 |
Commercial paper | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 54,456 | 60,422 |
Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 28,347 | 36,840 |
Certificates of deposit | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Certificates of deposit | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 28,347 | 36,840 |
Certificates of deposit | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 57,792 | 47,714 |
Asset-backed securities | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 57,792 | 47,714 |
Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 160,017 | 163,324 |
Corporate debt securities | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Corporate debt securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 160,017 | 163,324 |
Corporate debt securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 3,542 | 1,563 |
Money market funds | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 3,542 | 1,563 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Narrat
FAIR VALUE MEASUREMENT - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Transfers between fair value measurement levels | $ 0 | $ 0 |
STOCK COMPENSATION PLANS - Clas
STOCK COMPENSATION PLANS - Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 8,008 | $ 6,538 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 520 | 521 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 4,746 | 3,788 |
Sales, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 2,742 | $ 2,229 |
STOCK COMPENSATION PLANS - Sche
STOCK COMPENSATION PLANS - Schedule of Stock-Based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 8,008 | $ 6,538 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 309 | 298 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 577 | 601 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 7,081 | 5,595 |
Other awards | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 41 | $ 44 |
STOCK COMPENSATION PLANS - Stoc
STOCK COMPENSATION PLANS - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Number of Options, Abstract | ||
Number of options outstanding at beginning of period (in shares) | 1,116 | |
Number of options granted (in shares) | 0 | |
Number of options exercised (in shares) | (190) | |
Number of options cancelled (in shares) | (5) | |
Number of options outstanding at end of period (in shares) | 921 | 1,116 |
Number of options vested and expected to vest (in shares) | 921 | 1,116 |
Number of options exercisable (in shares) | 735 | 837 |
Weighted-Average Exercise Price, Abstract | ||
Weighted-average exercise price outstanding at beginning of period (in USD per share) | $ 9.78 | |
Options granted, Weighted-average exercise price (in USD per share) | 0 | |
Options exercised, Weighted-average exercise price (in USD per share) | 7.36 | |
Options cancelled, Weighted-average exercise price (in USD per share) | 22.19 | |
Weighted-average exercise price outstanding at end of period (in USD per share) | 10.22 | $ 9.78 |
Options vested and expected to vest, Weighted-average exercise price (in USD per share) | 10.22 | 9.78 |
Options exercisable, Weighted-average exercise price (in USD per share) | $ 7.86 | $ 7.38 |
Weighted-Average Remaining Contract Term, Abstract | ||
Options outstanding, Weighted-average remaining contractual term (in years) | 5 years 4 months 17 days | 5 years 8 months 12 days |
Options vested and expected to vest, Weighted-average remaining contractual term (in years) | 5 years 4 months 17 days | 5 years 8 months 12 days |
Options exercisable, Weighted-average remaining contractual term (in years) | 4 years 11 months 27 days | 5 years 3 months 18 days |
Aggregate Intrinsic Value, Abstract | ||
Options outstanding, Aggregate intrinsic value at beginning of period | $ 33,113 | |
Options exercised, Aggregate intrinsic value | 8,348 | |
Options outstanding, Aggregate intrinsic value at end of period | 44,209 | $ 33,113 |
Options vested and expected to vest, Aggregate intrinsic value | 44,209 | 33,113 |
Options exercisable, Aggregate intrinsic value | $ 36,886 | $ 26,544 |
STOCK COMPENSATION PLANS - Narr
STOCK COMPENSATION PLANS - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options granted (in shares) | 0 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost, stock options | $ 1,800,000 | $ 2,500,000 | |
Weighted average recognition period | 1 year | 1 year 1 month 6 days | |
Number of options granted (in shares) | 0 | 0 | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average recognition period | 2 years 4 months 18 days | 1 year 10 months 24 days | |
Restricted stock units granted (in shares) | 590,000 | ||
Vested awards settled in cash | $ 0 | ||
Unrecognized stock-based compensation expense | $ 70,200,000 | $ 52,500,000 | |
Restricted stock units | Employees and Executives | 2016 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted (in shares) | 403,000 | ||
Awards vesting period | 4 years | ||
Performance-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Right to receive common stock upon achievement of vesting conditions (in shares) | 1 | ||
Performance-Based RSUs | Executive | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted (in shares) | 187,234 | ||
Earned PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance objective period | 3 years |
STOCK COMPENSATION PLANS - Weig
STOCK COMPENSATION PLANS - Weighted-Average Assumptions Used to Estimate Fair Value (Details) - Performance-Based RSUs | 3 Months Ended |
Mar. 31, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.50% |
Expected dividend yield | 0.00% |
Expected volatility | 57.30% |
Expected term (in years) | 2 years 10 months 17 days |
Grant date fair value of underlying shares (in USD per share) | $ 44.43 |
STOCK COMPENSATION PLANS - Chan
STOCK COMPENSATION PLANS - Changes in Company Restricted Stock Units (Details) - Restricted stock units shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Shares outstanding at beginning of period (in shares) | shares | 2,325 |
Granted (in shares) | shares | 590 |
Vested (in shares) | shares | (316) |
Cancelled (in shares) | shares | (468) |
Shares outstanding at end of period (in shares) | shares | 2,131 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Shares outstanding, Weighted-average grant date fair value at beginning of period (in USD per share) | $ / shares | $ 40.55 |
Granted, Weighted-average grant date fair value (in USD per share) | $ / shares | 51.68 |
Vested, Weighted-average grant date fair value (in USD per share) | $ / shares | 35.93 |
Cancelled, Weighted-average grant date fair value (in USD per share) | $ / shares | 57.12 |
Shares outstanding, Weighted-average grant date fair value at end of period (in USD per share) | $ / shares | $ 40.68 |
NET INCOME (LOSS) PER SHARE - C
NET INCOME (LOSS) PER SHARE - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income (loss) | $ 6,977 | $ (9,078) |
Denominator: | ||
Weighted-average shares used to compute net (loss) income per share - basic (in shares) | 40,284 | 39,836 |
Dilutive effect of stock options, unvested restricted stock and restricted stock units and employee stock purchase plan (in shares) | 1,678 | 0 |
Weighted-average shares used to compute net (loss) income per share - diluted (in shares) | 41,962 | 39,836 |
Net income (loss) per share | ||
Basic (in USD per share) | $ 0.17 | $ (0.23) |
Diluted (in USD per share) | $ 0.17 | $ (0.23) |
NET INCOME (LOSS) PER SHARE - S
NET INCOME (LOSS) PER SHARE - Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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) | 49 | 1,218 |
Unvested restricted stock units and awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 176 | 1,445 |
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) | 0 | 3 |
NET INCOME (LOSS) PER SHARE - N
NET INCOME (LOSS) PER SHARE - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019shares | |
Performance-Based RSUs | Executive | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units granted (in shares) | 187,234 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | Jan. 24, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||
Legal settlement accrual | $ 6,000,000 | $ 2,500,000 | |
Indemnification | |||
Loss Contingencies [Line Items] | |||
Legal settlement accrual | $ 0 | $ 0 | |
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 | ||
Shareholder Derivative and Section 220 | |||
Loss Contingencies [Line Items] | |||
Litigation settlement, attorney fees | $ 700,000 | ||
Pending Litigation | ViaSat, Inc. Commonwealth of Massachusetts | |||
Loss Contingencies [Line Items] | |||
Legal settlement accrual | $ 6,000,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Changes in Product Warrant Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, beginning of period | $ 8,220 | $ 8,306 |
Provisions made to warranty reserve during the period | 5,026 | 3,463 |
Charges against warranty reserve during the period | (3,729) | (4,351) |
Warranty reserve, end of period | $ 9,517 | $ 7,418 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Benefit for income taxes | $ (1,481) | $ (4,301) | |
Effective income tax rate | (26.90%) | 32.10% | |
Uncertain tax positions | $ 5,100 | $ 5,000 | |
Unrecognized tax benefits that, if recognized, would favorably impact effective tax rate | $ 3,000 | $ 3,000 |
SEGMENT INFORMATION AND GEOGR_3
SEGMENT INFORMATION AND GEOGRAPHIC DATA - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
SEGMENT INFORMATION AND GEOGR_4
SEGMENT INFORMATION AND GEOGRAPHIC DATA - Summary of Revenue by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 105,216 | $ 72,941 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 12,340 | 9,427 |
China | ||
Segment Reporting Information [Line Items] | ||
Revenue | 42,887 | 22,083 |
Germany | ||
Segment Reporting Information [Line Items] | ||
Revenue | 10,833 | 19,746 |
Thailand | ||
Segment Reporting Information [Line Items] | ||
Revenue | 23,681 | 7,119 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 15,475 | $ 14,566 |
SEGMENT INFORMATION AND GEOGR_5
SEGMENT INFORMATION AND GEOGRAPHIC DATA - Summary of Total Long-Lived Assets by Country (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 26,619 | $ 26,643 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 18,748 | 18,123 |
Thailand | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 3,567 | 4,147 |
China | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 1,429 | 1,703 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 2,875 | $ 2,670 |
CONCENTRATIONS OF RISK - Summar
CONCENTRATIONS OF RISK - Summary of Customer Concentration of Total Revenue (Details) - Customer Concentration Risk - Revenue | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 31.00% | 20.00% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | 17.00% |
Customer C | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | 20.00% |
Customer E | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 18.00% | |
Pro Forma | Customer C | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 22.00% |
CONCENTRATIONS OF RISK - Summ_2
CONCENTRATIONS OF RISK - Summary of Customer Concentration of Accounts Receivable (Details) - Customer Concentration Risk - Accounts Receivable | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 26.00% | 30.00% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.00% | |
Customer D | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Customer F | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 20.00% | 17.00% |
CONCENTRATIONS OF RISK - Summ_3
CONCENTRATIONS OF RISK - Summary of Supplier Concentration (Details) - Supplier Concentration Risk - Purchases | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Supplier X | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 18.00% | 22.00% |
Supplier Y | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 56.00% | 48.00% |
CONCENTRATIONS OF RISK - Narrat
CONCENTRATIONS OF RISK - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Vendor | Supplier Concentration Risk | Research and development | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15.00% | 12.00% |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
ADI | |||
Related Party Transaction [Line Items] | |||
Purchase from related party | $ 900,000 | $ 700,000 | |
Product development agreement | $ 1,500,000 | ||
Product development agreement costs incurred | 300,000 | 500,000 | |
M/A-COM | |||
Related Party Transaction [Line Items] | |||
Purchase from related party | $ 0 | $ 300,000 |
Uncategorized Items - acia-2019
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 157,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 157,000 |