Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 28, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ECHELON CORP | ||
Entity Central Index Key | 31347 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $86.30 | ||
Entity Common Stock, Shares Outstanding | 43,989,415 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $13,340 | $14,648 | ||
Restricted Investments, Current | 1,401 | 0 | ||
Short-term investments | 28,829 | 42,987 | ||
Accounts receivable, net of allowances of $883 in 2013 and $859 in 2012 | 3,948 | [1] | 10,522 | [1] |
Inventories | 3,243 | 6,445 | ||
Deferred cost of goods sold | 935 | 1,649 | ||
Other current assets | 1,084 | 2,040 | ||
Disposal Group, Including Discontinued Operation, Other Assets, Current | 597 | 0 | ||
Total current assets | 53,377 | 78,291 | ||
Property and equipment, net | 10,190 | 18,670 | ||
Intangible Assets, Net (Excluding Goodwill) | 1,413 | 0 | ||
Goodwill | 5,936 | 8,390 | ||
Other long-term assets | 694 | 777 | ||
Long-term assets of discontinued operations held for sale | 36 | 0 | ||
Total assets | 71,646 | 106,128 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 3,614 | 5,424 | ||
Accrued liabilities | 2,844 | 7,395 | ||
Current portion of lease financing obligations | 2,459 | 2,257 | ||
Deferred revenues | 3,126 | 6,125 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Current | 1,024 | 0 | ||
Total current liabilities | 13,067 | 21,201 | ||
LONG-TERM LIABILITIES: | ||||
Lease financing obligations, excluding current portion | 13,662 | 15,928 | ||
Other long-term liabilities | 1,740 | 1,022 | ||
Total long-term liabilities | 15,402 | 16,950 | ||
STOCKHOLDERS' EQUITY: | ||||
Preferred Stock, $0.01 par value: Authorized - 5,000,000 shares; none outstanding | 0 | 0 | ||
Common stock, $0.01 par value: Authorized -100,000,000 shares Issued - 46,571,034 in 2013 and 46,270,136 shares in 2012, Outstanding - 43,351,850 in 2013 and 43,050,952 shares in 2012 | 472 | 466 | ||
Additional paid-in capital | 356,181 | 354,680 | ||
Treasury stock (3,219,184 shares in 2013 and 2012) | -28,130 | -28,130 | ||
Accumulated other comprehensive income | -431 | 1,015 | ||
Accumulated deficit | -285,169 | -260,843 | ||
Total Echelon Corporation stockholders' equity | 42,923 | 67,188 | ||
Noncontrolling interest in subsidiary | 254 | 789 | ||
Total stockholders' equity | 43,177 | 67,977 | ||
Total liabilities and stockholders' equity | $71,646 | $106,128 | ||
[1] | 1 Includes related party amounts of $158 in 2014 and $1,628 in 2013. See Note 14 for additional information on related party transactions. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Consolidated Balance Sheets [Abstract] | ||
Due from Related Parties, Current | $158,000 | $1,628,000 |
Allowance for Bad Debts Reserve and Sales Returns | $458,000 | $883,000 |
Preferred Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 47,202,835 | 46,571,034 |
Common Stock, Shares, Outstanding | 43,983,651 | 43,351,850 |
Treasury Stock, Shares | 3,219,184 | 3,219,184 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Revenues: | ||||||||||||||||||||||
Revenues | $9,647 | [1] | $9,178 | [1] | $8,981 | [1] | $10,924 | [1] | $12,518 | [1] | $10,177 | [1] | $11,398 | [1] | $11,764 | [1] | $38,730 | [1] | $45,857 | [1] | $134,017 | [1] |
Cost of revenues: | ||||||||||||||||||||||
Cost of Revenue | 4,316 | 4,180 | 3,784 | 4,538 | 4,928 | 3,795 | 4,639 | 4,653 | 16,818 | 18,015 | 77,562 | |||||||||||
Gross profit | 5,331 | 4,998 | 5,197 | 6,386 | 7,590 | 6,382 | 6,759 | 7,111 | 21,912 | 27,842 | 56,455 | |||||||||||
Operating expenses: | ||||||||||||||||||||||
Product development | 2,286 | [2] | 2,305 | [2] | 2,170 | [2] | 2,749 | [2] | 2,830 | [2] | 2,711 | [2] | 2,258 | [2] | 3,123 | [2] | 9,510 | [2] | 10,922 | [2] | 30,009 | [2] |
Sales and marketing | 2,498 | [2] | 2,160 | [2] | 2,265 | [2] | 2,175 | [2] | 2,130 | [2] | 2,232 | [2] | 2,237 | [2] | 2,462 | [2] | 9,098 | [2] | 9,061 | [2] | 21,460 | [2] |
General and administrative | 2,847 | [2] | 3,538 | [2] | 3,579 | [2] | 3,770 | [2] | 3,599 | [2] | 3,925 | [2] | 3,234 | [2] | 3,886 | [2] | 13,734 | [2] | 14,644 | [2] | 15,050 | [2] |
Impairment of Long-Lived Assets Held-for-use | 0 | 4,409 | 0 | 0 | 0 | 0 | 0 | 0 | 4,409 | 0 | 0 | |||||||||||
Litigation charges | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,452 | 0 | 3,452 | 0 | |||||||||||
Restructuring charges | 164 | 227 | 0 | 0 | 0 | 0 | 0 | 2,254 | 391 | 2,254 | 1,176 | |||||||||||
Total operating expenses | 7,795 | 12,639 | 8,014 | 8,694 | 8,559 | 8,868 | 7,729 | 15,177 | 37,142 | 40,333 | 67,695 | |||||||||||
Loss from operations | -2,464 | -7,641 | -2,817 | -2,308 | -969 | -2,486 | -970 | -8,066 | -15,230 | -12,491 | -11,240 | |||||||||||
Interest and other income (expense), net | 269 | 719 | -69 | 11 | -216 | -606 | -164 | 284 | 930 | -702 | -362 | |||||||||||
Interest expense on lease financing obligations | -261 | -271 | -280 | -288 | -297 | -305 | -312 | -321 | -1,100 | -1,235 | -1,360 | |||||||||||
Loss before provision for income taxes | -2,456 | -7,193 | -3,166 | -2,585 | -1,482 | -3,397 | -1,446 | -8,103 | -15,400 | -14,428 | -12,962 | |||||||||||
Income Tax Expense (Benefit) | 97 | 33 | 106 | -25 | 55 | 113 | 106 | 37 | 211 | 311 | 219 | |||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -24,861 | -18,418 | -13,181 | |||||||||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | -2,553 | -7,226 | -3,272 | -2,560 | -1,537 | -3,510 | -1,552 | -8,140 | -15,611 | -14,739 | -12,818 | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | -2,141 | -5,579 | -1,530 | -2,704 | -269 | 549 | -1,255 | -9,250 | -3,679 | 0 | |||||||||||
Net loss attributable to non controlling interest | 0 | 0 | -363 | |||||||||||||||||||
Less: comprehensive loss attributable to non controlling interest | 0 | 179 | 239 | 117 | 218 | 266 | 176 | 148 | 535 | 808 | 0 | |||||||||||
Net Income (Loss) Attributable to Parent | -2,553 | -9,188 | -8,612 | -3,973 | -4,023 | -3,513 | -827 | -9,247 | -24,326 | -17,610 | -12,818 | |||||||||||
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | ($0.06) | ($0.17) | ($0.08) | ($0.06) | ($0.04) | ($0.08) | ($0.04) | ($0.19) | ($0.36) | ($0.34) | ($0.30) | |||||||||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic and Diluted Share | $0 | ($0.05) | ($0.12) | ($0.03) | ($0.06) | $0 | $0.02 | ($0.03) | ($0.20) | ($0.07) | $0 | |||||||||||
Earnings Per Share, Basic and Diluted | ($0.06) | ($0.21) | ($0.20) | ($0.09) | ($0.09) | ($0.08) | ($0.02) | ($0.22) | ($0.56) | ($0.41) | ($0.30) | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $0 | ($1,962) | ($5,340) | ($1,413) | ($2,486) | ($3) | $725 | ($1,107) | ($8,715) | ($2,871) | $0 | |||||||||||
Shares used in computing net income (loss) per share: | ||||||||||||||||||||||
Basic | 43,904 | 43,507 | 43,325 | 43,264 | 43,252 | 43,184 | 43,000 | 42,929 | 43,502 | 43,092 | 42,650 | |||||||||||
Diluted | 43,904 | 43,507 | 43,325 | 43,264 | 43,252 | 43,184 | 43,000 | 42,929 | 43,502 | 43,092 | 42,650 | |||||||||||
[1] | 1 Includes related party amounts of $2,993 in 2014, $7,363 in 2013, and $6,458 in 2012. See Note 14 for additional information on related party transactions. | |||||||||||||||||||||
[2] | 2 See Note 8 for summary of amounts included representing stock-based compensation expense. |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenue from related parties | $2,993 | $7,363 | $6,458 |
Consolidated_Statements_of_Com
Consolidated Statements of Compehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Income (Loss) from Continuing Operations Attributable to Parent | ($15,611) | ($14,739) | ($12,818) |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | -9,250 | -3,679 | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -24,861 | -18,418 | -13,181 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 506 | 259 | |
Unrealized holding gain (loss) on available-for-sale securities | -15 | 0 | 6 |
Total other comprehensive income (loss) | -1,446 | 506 | 265 |
Comprehensive loss | -26,307 | -17,912 | -12,916 |
Less: comprehensive loss attributable to non controlling interest | 535 | 808 | 0 |
Net loss attributable to non controlling interest | 0 | 0 | 363 |
Comprehensive loss attributable to Echelon Corporation Stockholders | $25,772 | $17,104 | ($12,553) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2011 | $89,108 | $457 | ($28,130) | $346,952 | $244 | ($230,415) | |
Common Stock, Shares, Issued at Dec. 31, 2011 | -45,741,000 | -3,219,000 | |||||
Release of performance shares, Shares | 883,000 | ||||||
Release of performance shares, value | 0 | 9 | -9 | ||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options Shares | -354,000 | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | -1,333 | -3 | -1,330 | ||||
Sale of subsidiary shares to non controlling interest | 1,960 | 1,960 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 6,976 | 6,976 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 259 | 259 | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 6 | 6 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -13,181 | 12,818 | 363 | ||||
Stock Issued During Period, Value, Acquisitions | 0 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2012 | 83,795 | 463 | -28,130 | 352,589 | 509 | -243,233 | 1,597 |
Common Stock, Shares, Issued at Dec. 31, 2012 | -46,270,000 | -3,219,000 | |||||
Release of performance shares, Shares | 491,000 | ||||||
Release of performance shares, value | 0 | 5 | -5 | ||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options Shares | -190,000 | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | -444 | -2 | -442 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 2,538 | 2,538 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 506 | 506 | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 0 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -18,418 | 17,610 | 808 | ||||
Stock Issued During Period, Value, Acquisitions | 0 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2013 | 67,977 | 466 | -28,130 | 354,680 | 1,015 | -260,843 | 789 |
Common Stock, Shares, Issued at Dec. 31, 2013 | -46,571,034 | -46,571,000 | -3,219,000 | ||||
Stock Issued During Period, Shares, Other | 5,000 | ||||||
Options and SARS, Exercises in Period, Shares | 5,395 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | 17 | 0 | 17 | ||||
Release of performance shares, Shares | 469,000 | ||||||
Release of performance shares, value | 0 | 5 | -5 | ||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options Shares | -178,000 | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | -422 | -2 | -420 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 1,197 | 1,197 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -1,431 | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | -15 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -24,861 | -24,326 | -535 | ||||
Stock Issued During Period, Shares, Acquisitions | 336,000 | ||||||
Stock Issued During Period, Value, Acquisitions | 715 | 3 | 712 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2014 | $43,177 | $472 | ($28,130) | $356,181 | ($431) | ($285,169) | $254 |
Common Stock, Shares, Issued at Dec. 31, 2014 | -47,202,835 | -47,203,000 | -3,219,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Cash Flows [Abstract] | |||
Income (Loss) from Continuing Operations Attributable to Parent | ($15,611) | ($14,739) | ($12,818) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -24,861 | -18,418 | -13,181 |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 3,350 | 4,020 | 6,580 |
Goodwill, Impairment Loss | 3,388 | 0 | 0 |
Increase in allowance for doubtful accounts | -57 | 47 | 40 |
Gain (Loss) on Disposition of Business | 254 | 0 | 0 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 5,217 | 30 | 22 |
Reduction of (increase in) accrued investment income | -32 | -6 | -6 |
Stock-based compensation | 1,197 | 2,538 | 6,976 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 43 | 0 | 0 |
Change in operating assets and liabilities: | |||
Accounts receivable | 2,536 | 5,151 | 19,405 |
Inventories | 1,757 | 5,284 | -642 |
Deferred cost of goods sold | 209 | -797 | 5,686 |
Other current assets | 1,007 | 450 | 1,386 |
Accounts payable | -81 | -2,925 | -9,669 |
Accrued liabilities | -4,034 | 2,605 | -3,250 |
Deferred revenues | -846 | 978 | -7,906 |
Deferred rent | -35 | -36 | -43 |
Net cash (used in) provided by operating activities | -10,988 | -1,079 | 5,398 |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | |||
Purchases of available-for-sale short-term investments | -28,975 | -46,947 | -83,926 |
Proceeds from maturities and sales of available-for-sale short-term investments | 48,000 | 46,946 | 81,957 |
Change in other long-term assets | 29 | -51 | -15 |
Payments to Acquire Businesses, Net of Cash Acquired | -924 | 0 | 0 |
Proceeds from Divestiture of Businesses | 2,144 | 0 | 0 |
Capital expenditures | -746 | -971 | -1,129 |
Net cash (used in) provided by investing activities | 19,528 | -1,023 | -3,113 |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Principal payments of lease financing obligations | -2,064 | -2,056 | -1,971 |
Proceeds from exercise of stock options | 17 | 0 | 0 |
Payments to Acquire Restricted Investments | -6,250 | 0 | |
Proceeds from noncontrolling interests | 0 | 0 | 1,960 |
Repurchase of common stock from employees for payment of taxes on vesting of restricted stock units and upon exercise of stock options | -422 | -453 | -1,325 |
Net cash used in financing activities | -8,719 | -2,509 | -1,336 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | -1,129 | 383 | 269 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -1,308 | -4,228 | 1,218 |
CASH AND CASH EQUIVALENTS: | |||
Beginning of period | 14,648 | 18,876 | 17,658 |
End of period | 13,340 | 14,648 | 18,876 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash paid for interest on lease financing obligations | 1,003 | 1,224 | 1,350 |
Cash paid for income taxes | 294 | 459 | 357 |
Stock Issued During Period, Value, Acquisitions | 715 | 0 | 0 |
Non-cash transfer from financing to investing for restricted investments used as collateral for credit cards | 1,399 | 0 | 0 |
Transfer from Investments | $4,851 | $0 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||
Significant Accounting Policies [Text Block] | 1. Significant Accounting Policies | |||||||||||
Operations | ||||||||||||
Echelon Corporation (the Company) was incorporated in California in February 1988 and reincorporated in Delaware in January 1989. The Company is based in San Jose, California, and maintain offices in seven foreign countries throughout Europe and Asia. Its products enable everyday devices — such as air conditioners, appliances, elevators, electricity meters, light switches, thermostats, and valves — to be made “smart” and inter-connected, part of an emerging market known as the Industrial Internet of Things ("IIoT"). | ||||||||||||
Its proven, open standard, multi-application energy control networking platform powers applications for smart cities, smart buildings, and smart campuses that help customers save on their energy usage, reduce outage duration or prevent them from happening entirely, reduce carbon footprint and more. Today, the Company offers, directly and through its partners worldwide, a wide range of products and services. | ||||||||||||
Basis of Presentation | ||||||||||||
The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and a subsidiary in which it has a controlling interest (collectively referred to as the “Company”). The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries and other consolidated entities have been eliminated in consolidation. | ||||||||||||
In the third quarter of 2014, the Company announced and completed the sale of its Grid business to S&T AG, a publicly traded European IT systems provider with an existing focus on smart energy products and services. The results of the Grid business for the years ended December 31, 2014 and 2013 are now classified as discontinued operations. Prior to 2013, the Grid business was not deemed a component of the Company as operations and cashflows could not be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company. Therefore, the reporting of discontinued operations for 2012 is not appropriate as the operations and cashflows from the Grid business were not clearly distinguished from the rest of the Company prior to 2013. Furthermore, for 2012 it was impracticable for the Company to break out the separate results for the Grid business as it was organized and operating as a single segment and separate division specific financial information is unavailable. As a result of this transaction, the Company now operates in one reporting segment- the IIoT segment. | ||||||||||||
Risks and Uncertainties | ||||||||||||
The Company’s operations and performance depend significantly on worldwide economic conditions and their impact on purchases of the Company’s products, as well as the ability of suppliers to provide the Company with products and services in a timely manner. The impact of any of the matters described below could have an adverse effect on the Company’s business, results of operations and financial condition. | ||||||||||||
• | Approximately 33.9% of net revenue for the year ended December 31, 2014 were derived from two customers. Customers in any of the Company’s target market sectors may experience unexpected reductions in demand for their products and consequently reduce their purchases from the Company, resulting in either the loss of a significant customer or a notable decrease in the level of sales to a significant customer. In addition, if any of these customers are unable to obtain the necessary capital to operate their business, they may be unable to satisfy their payment obligations to the Company. | |||||||||||
• | The Company utilizes third-party contract electronic manufacturers to manufacture, assemble, and test its products. If any of these third-parties were unable to obtain the necessary capital to operate their business, they may be unable to provide the Company with timely services or to make timely deliveries of products. | |||||||||||
• | From time to time, the Company has experienced shortages or interruptions in supply for certain products or components used in the manufacture of the Company’s products that have been or will be discontinued. In order to ensure an adequate supply of these items, the Company has occasionally purchased quantities of these items that are in excess of the Company’s then current estimate of short-term requirements. If the long-term requirements do not materialize as originally expected, or if the Company develops alternative solutions that no longer employ these items and the Company is not able to dispose of these excess products or components, the Company could be subject to increased levels of excess and obsolete inventories. | |||||||||||
• | Recently, in our effort to manage our costs and inventory risks, we decreased our inventory levels of certain products. If there is an unexpected increase in demand for these items, we might not be able to supply our customers with products in a timely manner. | |||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions, and estimates that affect amounts reported in the Consolidated Financial Statements and accompanying notes. Significant estimates and judgments are used for revenue recognition, performance-based equity compensation, inventory valuation, intangible asset valuation, contingent consideration valuation, and other loss contingencies. In order to determine the carrying values of assets and liabilities that are not readily apparent from other sources, the Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances. Actual results experienced by the Company may differ materially from management’s estimates. | ||||||||||||
Recently Issued Accounting Standards | ||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08 (“ASU 2014-08”), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the new guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect of an entity’s operations and financial results and is disposed of or classified as held for sale. ASU 2014-08 also introduces several new disclosures. The guidance is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. The Company has not early adopted this guidance and when it does so, does not expect ASU 2014-08 to have a material impact on its consolidated financial statements. | ||||||||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | ||||||||||||
Revenue Recognition | ||||||||||||
The Company’s revenues are derived from the sale and license of its products and to a lesser extent, from fees associated with training, technical support, and custom software design services offered to its customers. Product revenues consist of revenues from hardware sales and software licensing arrangements. Service revenues consist of product technical support (including software post-contract support services), training, and custom software development services. | ||||||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery to the customer’s carrier (and acceptance, as applicable) has occurred, the sales price is fixed or determinable, collectability is probable, and there are no post-delivery obligations. For non-distributor hardware sales, including sales to third party manufacturers, these criteria are generally met at the time of delivery to the customer’s carrier. However, for arrangements that contain contractual acceptance provisions, revenue recognition may be delayed until acceptance by the customer or the acceptance provisions lapse unless the Company can objectively demonstrate that the contractual acceptance criteria have been satisfied, which is generally accomplished by establishing a history of acceptance for the same or similar products. For sales made to the Company’s distributor partners, revenue recognition criteria are generally met at the time the distributor sells the products through to its end-use customer. Service revenue is recognized as the training services are performed, or ratably over the term of the support period. | ||||||||||||
The Company accounts for the rights of return, price protection, rebates, and other sales incentives offered to distributors of its products as a reduction in revenue. With the exception of sales to distributors, the Company’s customers are generally not entitled to return products for a refund. For sales to distributors, due to contractual rights of return and other factors that impact its ability to make a reasonable estimate of future returns and other sales incentives, revenues are not recognized until the distributor has shipped its products to the end customer. | ||||||||||||
The Company’s multiple deliverable revenue arrangements have historically been primarily related to sales of its Grid products. As noted above, the Company completed the sale of its Grid division to S&T AG in September 2014. These historical transactions typically included, within a single arrangement, a combination of some or all of the following deliverables: electricity meters, data concentrators and related hardware (collectively, the “Hardware”); NES system software; Element Manager software; post-contract customer support (“PCS”) for the NES system and Element Manager software; extended warranties for the Hardware; and, occasionally, specified enhancements or upgrades to software used in the NES system. With the exception of the NES system software, each of these deliverables was considered a separate unit of accounting. The NES system software functions together with an electricity meter to deliver its essential functionality and any related software license fee is charged for on a per meter basis. Therefore, the NES system software and an electricity meter are combined and considered a single unit of accounting. The Element Manager software is not considered to be part of an electricity meter’s essential functionality and, therefore, Element Manager software and any related PCS has been accounted for under industry specific software revenue recognition guidance. However, all other NES system deliverables are no longer within the scope of industry specific software revenue recognition guidance. | ||||||||||||
The Company allocates revenue to each element in a multiple-element arrangement based upon their relative selling price. The Company determines the selling price for each deliverable using vendor specific objective evidence (“VSOE”) of selling price or third party evidence (“TPE”) of selling price, if it exists. If neither VSOE nor TPE of selling price exists for a deliverable, the Company uses its best estimated selling price (“BESP”) for that deliverable. Since the use of the residual method is eliminated under the accounting standards, any discounts offered by the Company are allocated to each of the deliverables. Revenue allocated to each element is then recognized when the basic revenue recognition criteria is met for the respective element. | ||||||||||||
Consistent with its methodology under previous accounting guidance, if available, the Company determines VSOE of fair value for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial contractual arrangement. The Company currently estimates selling prices for its PCS and extended warranties based on VSOE of fair value. | ||||||||||||
In many instances, the Company is not currently able to obtain VSOE of fair value for all deliverables in an arrangement with multiple elements. This may be due to the Company infrequently selling each element separately or not pricing products within a narrow range. When VSOE cannot be established, the Company attempts to estimate the selling price of each element based on TPE. TPE would consist of competitor prices for similar deliverables when sold separately. Generally, the Company’s offerings contain significant differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine the stand-alone selling prices for similar products of its competitors. Therefore, the Company is typically not able to obtain TPE of selling price. | ||||||||||||
When the Company is unable to establish a selling price using VSOE or TPE, which was generally the case for the Hardware and certain specified enhancements or upgrades to the Company’s NES software, the Company uses its BESP in determining the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. | ||||||||||||
The Company establishes pricing for its products and services by considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and industry pricing practices. The determination of pricing also includes consultation with and formal approval by the Company’s management, taking into consideration the Company’s go-to-market strategy. These pricing practices apply to both the Company’s Hardware and software products. | ||||||||||||
Based on an analysis of pricing stated in contractual arrangements for its Hardware products in historical multiple-element transactions and, to a lesser extent, historical standalone transactions, the Company has concluded that it typically prices its Hardware within a narrow range of discounts when compared to the price listed on the Company’s standard pricing grid for similar deliverables (i.e., similar configuration, volume, geography, etc.). Therefore, the Company has determined that, for its current Hardware for which VSOE or TPE is not available, the Company’s BESP is generally comprised of prices based on a narrow range of discounts from pricing stated in its pricing grid. | ||||||||||||
When establishing BESP for the Company’s specified software enhancements or upgrades, the Company considers multiple factors including, but not limited to, the relative value of the features and functionality being delivered by the enhancement or upgrade as compared to the value of the software product to which the enhancement or upgrade relates, as well as the Company’s pricing practices for NES system software PCS packages, which may include rights to the specified enhancements or upgrades. | ||||||||||||
The Company regularly reviews VSOE and has established a review process for TPE and BESP. The Company maintains internal controls over the establishment and updates of these estimates. There were no material impacts during the year ended December 31, 2014, resulting from changes in VSOE, TPE, or BESP, nor does the Company expect a material impact from such changes in the near term. | ||||||||||||
Deferred Revenue and Deferred Cost of Goods Sold | ||||||||||||
Deferred revenue consists substantially of amounts billed or payments received in advance of revenue recognition. Deferred cost of goods sold related to deferred product revenues includes direct product costs and applied overhead. Once all revenue recognition criteria have been met, the deferred revenues and associated cost of goods sold are recognized. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The Company accounts for employee stock-based payment transactions in which the Company receives employee services in exchange for equity instruments of the enterprise. Stock-based compensation cost for restricted stock units (“RSUs”) granted to employees is measured based on the closing fair market value of the Company's common stock on the date of grant. Stock-based compensation cost for RSUs granted to non-employee consultants is measured based on the closing fair market value of the Company's common stock at the earlier of the date at which a commitment for performance by the consultant to earn the RSUs is reached, or the date at which the consultant's performance necessary for the RSUs to vest has been completed. Stock-based compensation cost for stock options and stock appreciation rights granted to employees (“SARs”) is estimated at the grant date based on each award's fair-value as calculated using the Black-Scholes-Merton (“BSM”) option-pricing model. The Company recognizes stock-based compensation cost as expense using the accelerated multiple-option approach over the requisite service period. Further information regarding stock-based compensation can be found in Note 8 of these Notes to Consolidated Financial Statements. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
The Company considers bank deposits, money market investments and all debt and equity securities with remaining maturities of three months or less at the date of purchase to be cash and cash equivalents. | ||||||||||||
Short-Term Investments | ||||||||||||
The Company classifies its investments in marketable debt securities as available-for-sale. Securities classified as available-for-sale are reported at fair value with the related unrealized holding gains and losses, net of tax, being included in accumulated other comprehensive income (loss). | ||||||||||||
Fair Value Measurements | ||||||||||||
The Company measures at fair value its cash equivalents and available-for-sale investments using a valuation hierarchy based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's own assumptions. These two types of inputs have created the following fair value hierarchy: | ||||||||||||
• | Level 1 - Quoted prices for identical instruments in active markets; | |||||||||||
• | Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |||||||||||
• | Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||
This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when estimating fair value. Other than cash and money market funds, the Company's only financial assets or liabilities required to be measured at fair value on a recurring basis at December 31, 2014, are fixed income available-for-sale securities. See Note 2 of these Notes to Consolidated Financial Statements for a summary of the input levels used in determining the fair value of the Company's cash equivalents and short-term investments as of December 31, 2014. | ||||||||||||
Inventories | ||||||||||||
Inventories are stated at the lower of cost (first‑in, first‑out) or market and include material, labor and manufacturing overhead. When required, provisions are made to reduce excess and obsolete inventories to their estimated net realizable value. Inventories consist of the following (in thousands): | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Purchased materials | $ | 402 | $ | 1,343 | ||||||||
Finished goods | 2,841 | 5,102 | ||||||||||
$ | 3,243 | $ | 6,445 | |||||||||
Impairment of Long-Lived Assets Including Goodwill | ||||||||||||
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the asset's carrying value to the future undiscounted cash flows the asset is expected to generate. If long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. For the year ended December 31, 2014, the Company recognized impairments associated with certain long-lived assets associated with its Grid division and a building that the Company ceased use of at its corporate headquarters facility (see Note 3 for additional information regarding the impairment). For the two years ended December 31, 2013, the Company recognized no impairments of long-lived assets. | ||||||||||||
Costs in excess of the fair value of tangible and other identifiable intangible assets acquired and liabilities assumed in a purchase business combination are recorded as goodwill, which is tested for impairment using a two-step approach. The Company evaluates goodwill, at a minimum, on an annual basis during the first quarter and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit's carrying amount, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using a combination of the income approach and the market approach. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. For the year ended December 31, 2014, the Company recognized a goodwill impairment associated with the Grid division (see Note 10 for additional information regarding the impairment). For the two years ended December 31, 2013, the Company recognized no impairments of goodwill. | ||||||||||||
Software Development Costs | ||||||||||||
For software to be sold, leased, or otherwise marketed, the Company capitalizes eligible computer software development costs upon the establishment of technological feasibility, which the Company has defined as completion of a working model. For the three years ended December 31, 2014, costs that were eligible for capitalization were insignificant and, thus, the Company has charged all software development costs to product development expense in the accompanying consolidated statements of operations. | ||||||||||||
Accrued Liabilities | ||||||||||||
Accrued liabilities consist of the following (in thousands): | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Accrued payroll and related costs | $ | 1,463 | $ | 3,885 | ||||||||
Warranty reserve | 143 | 515 | ||||||||||
Restructuring charges | 701 | 49 | ||||||||||
Customer deposits | — | 643 | ||||||||||
Accrued taxes | 33 | 75 | ||||||||||
Litigation charges | — | 1,875 | ||||||||||
Other accrued liabilities | 504 | 353 | ||||||||||
$ | 2,844 | $ | 7,395 | |||||||||
Foreign Currency Translation | ||||||||||||
The functional currency of the Company's subsidiaries is the local currency. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rate as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Gains and losses resulting from the translation of the financial statements are included in accumulated other comprehensive income (loss). | ||||||||||||
Remeasurement adjustments for non-functional currency monetary assets and liabilities, including short-term intercompany balances, are included in other income (expense) in the accompanying consolidated statements of operations. Currently, the Company does not employ a foreign currency hedge program utilizing foreign currency exchange contracts as the foreign currency transactions and risks to date have not been significant. | ||||||||||||
Concentrations of Credit Risk and Suppliers | ||||||||||||
The Company's financial instruments consist of cash equivalents, short-term investments, accounts receivable, accounts payable, and lease financing obligations. The carrying value of the Company's financial instruments approximates fair value. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of investments, which are classified as either cash equivalents or short-term investments, and trade receivables. With respect to its investments, the Company has an investment policy that limits the amount of credit exposure to any one financial institution and restricts placement of the Company's investments to financial institutions independently evaluated as highly creditworthy. With respect to its trade receivables, the Company performs ongoing credit evaluations of each of its customers' financial condition. For a customer whose credit worthiness does not meet the Company's minimum criteria, the Company may require partial or full payment prior to shipment. Alternatively, prior to shipment, customers may be required to provide the Company with an irrevocable letter of credit or arrange for some other form of coverage, such as a bank guarantee, to mitigate the risk of uncollectibility. Additionally, the Company establishes an allowance for doubtful accounts and sales return allowances based upon factors surrounding the credit risk of specific customers, historical trends, and other available information. With the exception of amounts owed to the Company on sales made to certain significant customers, concentrations of credit risk with respect to trade receivables are generally limited due to the Company's large number of customers and their dispersion across many different industries and geographies. As of December 31, 2014 and 2013, the percentage of the Company's total accounts receivable balance that were due from the following significant customers is as follows (refer to Note 9 - Significant Customers for a discussion of revenues generated from the Company's significant customers): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Enel Distribuzione Spa | 3.60% | 14.30% | ||||||||||
EBV Electronik GmbH / Avnet Europe Comm VA | 24.00% | 8.60% | ||||||||||
Total | 27.60% | 22.90% | ||||||||||
For most of the Company's products requiring assembly, it relies on a limited number of contract electronic manufacturers, principally Bel-Fuse (formerly TYCO). The Company also maintains manufacturing agreements with a limited number of semiconductor manufacturers for the production of key products. | ||||||||||||
The Neuron Chip is an important component that the Company and its customers use in control network devices. In addition to those sold by the Company, the Neuron Chip is currently manufactured and distributed only by Cypress Semiconductor. Another semiconductor supplier, STMicroelectronics, manufactures the Company's power line smart transceiver products, for which the Company has no alternative source. In addition, the Company currently purchases several key products and components from sole or limited source suppliers with which it does not maintain signed agreements that would obligate them to supply to the Company on negotiated terms. | ||||||||||||
If any of the Company's key suppliers were to stop manufacturing the Company's products or cease supplying the Company with its key components, it could be expensive and time consuming to find a replacement. There is no guarantee that the Company would be able to find acceptable alternatives or additional sources. | ||||||||||||
The failure of any key manufacturer to produce a sufficient number of products on time, at agreed quality levels, and fully compliant with the Company's product, assembly and test specifications could adversely affect the Company's revenues and gross profit, and could result in claims against the Company by its customers, which could harm the Company's results of operations and financial position. | ||||||||||||
Computation of Basic and Diluted Net Loss Per Share | ||||||||||||
Basic net loss per share is calculated by dividing net loss attributable to Echelon Corporation Stockholders by the weighted average shares of common stock outstanding during the period. Diluted net loss per share attributable to Echelon Corporation Stockholders is calculated by adjusting the weighted average number of outstanding shares assuming conversion of all potentially dilutive stock options and warrants under the treasury stock method. | ||||||||||||
The following is a reconciliation of the numerators and denominators of the basic and diluted net loss per share computations for the years ended December 31, 2014, 2013 and 2012 (in thousands, except per share amounts): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net loss (Numerator): | ||||||||||||
Net loss from continuing operations attributable to Echelon Corporation Stockholders | $ | (15,611 | ) | $ | (14,739 | ) | $ | (12,818 | ) | |||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders | (8,715 | ) | (2,871 | ) | — | |||||||
Net loss attributable to Echelon Corporation Stockholders | $ | (24,326 | ) | $ | (17,610 | ) | $ | (12,818 | ) | |||
Shares (Denominator): | ||||||||||||
Weighted average common shares outstanding | 43,502 | 43,092 | 42,650 | |||||||||
Shares used in basic computation | 43,502 | 43,092 | 42,650 | |||||||||
Common shares issuable upon exercise of stock options (treasury stock method) | — | — | — | |||||||||
Shares used in diluted computation | 43,502 | 43,092 | 42,650 | |||||||||
Net loss per share: | ||||||||||||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ | (0.36 | ) | $ | (0.34 | ) | $ | (0.30 | ) | |||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | $ | (0.20 | ) | $ | (0.07 | ) | $ | 0 | ||||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ | (0.56 | ) | $ | (0.41 | ) | $ | (0.30 | ) | |||
For the years ended December 31, 2014, 2013 and 2012, the diluted net loss per share calculation is equivalent to the basic net loss per share calculation as there were no potentially dilutive stock options or RSUs due to the Company’s net loss position. The number of stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and contingently issuable shares excluded from this calculation for the years ended December 31, 2014, 2013 and 2012 was 4,061,346, 5,472,946 and 5,868,929, respectively. | ||||||||||||
Income Taxes | ||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||
The Company takes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon effective settlement. The Company re-evaluates its income tax positions on a quarterly basis to consider factors such as changes in facts or circumstances, changes in or interpretations of tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in recognition of a tax benefit or an additional charge to the tax provision. Interest and penalties on unrecognized tax benefits are classified as income tax expense. | ||||||||||||
Comprehensive Income (Loss) | ||||||||||||
Comprehensive income (loss) for the Company consists of net loss plus the effect of unrealized holding gains or losses on investments classified as available-for-sale and foreign currency translation adjustments. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Financial Instruments | 2. Financial Instruments | |||||||||||||||
On a recurring basis, the Company measures certain of its financial assets, namely its cash equivalents, and short-term investments, and its liability related to contingent consideration due to Lumewave, Inc. ("Lumewave") shareholders at fair value. The fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis was determined using the following inputs at December 31, 2014 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 9,023 | $ | 9,023 | $ | — | $ | — | ||||||||
U.S. government securities(2) | 30,230 | — | 30,230 | — | ||||||||||||
Total | $ | 39,253 | $ | 9,023 | $ | 30,230 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 968 | $ | — | $ | — | $ | 968 | ||||||||
Total | $ | 968 | $ | — | $ | — | $ | 968 | ||||||||
The fair value of the Company’s financial assets measured at fair value on a recurring basis was determined using the following inputs at December 31, 2013 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Money market funds (1) | $ | 5,254 | $ | 5,254 | $ | — | $ | — | ||||||||
U.S. government securities(2) | 42,987 | — | 42,987 | — | ||||||||||||
Total | $ | 48,241 | $ | 5,254 | $ | 42,987 | $ | — | ||||||||
(1) Included in cash and cash equivalents in the Company’s consolidated balance sheets | ||||||||||||||||
(2) | Represents the portfolio of available for sale securities and is included in restricted investments and short-term investments in the Company’s consolidated balance sheets | |||||||||||||||
The Company’s available-for-sale securities consist of U.S. government securities with a minimum and weighted average credit rating of A-1+. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. However, the Company classifies all of its fixed income available-for-sale securities as having Level 2 inputs. The valuation techniques used to measure the fair value of the Company’s financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques. The Company's procedures include controls to ensure that appropriate fair values are recorded such as comparing prices obtained from multiple independent sources. There were no transfers between Level 1 and 2 hierarchies for the years ended December 31, 2014 and 2013. | ||||||||||||||||
The contingent consideration payable to Lumewave's shareholders, which the Company recognized upon it's purchase of Lumewave in August 2014 and is included in other long-term liabilities in the Company's consolidated balance sheets as of December 31, 2014, is classified within Level 3 because significant assumptions for this obligation are not observable in the market. The table below includes a rollforward of the balance sheet amounts for financial instruments classified by the Company within Level 3 of the valuation hierarchy for the year ended December 31, 2014 (in thousands): | ||||||||||||||||
Contingent Consideration | ||||||||||||||||
BALANCE AT DECEMBER 31, 2013 | $ | — | ||||||||||||||
Recorded in conjunction with acquisition of Lumewave, Inc. | 925 | |||||||||||||||
Amortization of interest on contingent consideration | 43 | |||||||||||||||
BALANCE AT DECEMBER 31, 2014 | $ | 968 | ||||||||||||||
As of December 31, 2014, the Company’s available-for-sale securities had contractual maturities from eight to twelve months and an average remaining term to maturity of seven months. As of December 31, 2014, the amortized cost basis, aggregate fair value, and gross unrealized holding gains and losses of the Company’s short-term investments by major security type were as follows (in thousands): | ||||||||||||||||
Amortized Cost | Aggregate Fair Value | Unrealized Holding Gains | Unrealized Holding Losses | |||||||||||||
U.S. government and agency securities | $ | 30,237 | $ | 30,230 | $ | — | $ | 7 | ||||||||
Among the Company's available-for-sale securities, there have been no unrealized holding losses for a period of greater than 12 months as of December 31, 2014. The amortized cost basis, aggregate fair value and gross unrealized holding gains and losses for the Company’s available-for-sale short-term investments, by major security type, were as follows as of December 31, 2013 (in thousands): | ||||||||||||||||
Amortized Cost | Aggregate Fair Value | Unrealized Holding Gains | Unrealized Holding Losses | |||||||||||||
U.S. government securities | $ | 42,979 | $ | 42,987 | $ | 8 | $ | — | ||||||||
Market values were determined for each individual security in the investment portfolio. Any decline in value of these investments is primarily related to changes in interest rates and is considered to be temporary in nature. The Company reviews its investments on a regular basis to evaluate whether or not any have experienced an other-than-temporary decline in fair value. The cost of securities sold is based on the specific identification method and realized gains and losses are included in Interest and other income (expense), net. |
Property_and_equipment
Property and equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | 3. Property and Equipment | |||||||
A summary of property and equipment, net as of December 31, 2014 and 2013 is as follows (in thousands): | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Buildings and improvements | $ | 27,629 | $ | 37,356 | ||||
Computer and other equipment | 4,046 | 22,138 | ||||||
Software | 3,283 | 3,627 | ||||||
Furniture and fixtures | 2,205 | 2,625 | ||||||
Leasehold improvements | 894 | 4,010 | ||||||
38,057 | 69,756 | |||||||
Less: Accumulated depreciation and amortization | (27,867 | ) | (51,086 | ) | ||||
Property and equipment, net | $ | 10,190 | $ | 18,670 | ||||
Property and equipment are stated at cost. The cost of buildings and improvements for the Company's leased San Jose, California headquarters facilities, for which it is the “deemed owner” for accounting purposes only, includes both the costs paid for directly by the Company and the costs paid for by the builder (lessor) from the period commencing with the start of construction through the lease commencement date for each building. These “building assets” are reflected as “Buildings and Improvements” in the schedule above. Building improvements paid for by the Company subsequent to the lease commencement date of each building are reflected as “Leasehold Improvements” in the schedule above. | ||||||||
Effective June 2008, the building leases were amended, resulting in an extension of the lease term for both buildings through March 2020. As a result of the lease extensions, the lease financing obligations for each building were increased based on the present value of the revised lease payments on the date of the extension, with a corresponding increase to the net carrying amount of the cost of the building assets (see further information below). | ||||||||
Depreciation is provided using the straight-line method as follows: | ||||||||
• | Building assets and leasehold improvements are depreciated over the shorter of the remaining lease term or estimated useful lives (see further information below); | |||||||
• | Computer equipment and related software, other equipment, and furniture and fixtures are depreciated over their estimated useful lives of two to five years; and | |||||||
• | Certain telecommunications equipment is depreciated over its estimated useful life of 10 years. | |||||||
Accounting for buildings and improvements | ||||||||
In December 1999, the Company entered into a lease agreement with a real estate developer for its existing corporate headquarters in San Jose, California. In October 2000, the Company entered into a second lease agreement with the same real estate developer for an additional building at its headquarters site. These leases were scheduled to expire in 2011 and 2013, respectively. | ||||||||
Effective June 2008, the building leases were amended resulting in an extension of the lease term for both buildings through March 2020. The extended leases require minimum lease payments through March 2020 totaling approximately $48.9 million. Both leases permit the Company to exercise an option to extend the respective lease for 2 sequential 5-year terms. In addition, the amended leases eliminated the Company's requirement to provide the landlord with security deposits, which the Company had previously satisfied through the issuance of standby letters of credit (“LOCs”). | ||||||||
The Company has historically accounted for the two buildings at its San Jose, California headquarters site under authoritative guidance pertaining to leases in which the Company is both involved in the construction of the lease assets and for which certain sale-leaseback criteria are not met. This results in the Company being the “deemed owner” of the two buildings for accounting purposes only. Accordingly, the leases associated with these facilities are accounted for as financing obligations. | ||||||||
For the December 1999 and October 2000 lease agreements, the Company initially recorded lease financing obligations of $12.0 million and $15.2 million, respectively, which corresponded to the building asset costs paid for by the lessor. As a result of the lease extension in June 2008, the Company increased the carrying amount of its lease financing obligations by approximately $12.5 million to approximately $27.6 million (an amount equal to the present value of the revised lease payments at the date of the lease extension), with a corresponding increase to the net carrying amount of the building assets. In addition, all of the accumulated depreciation on the building assets at the date of the lease extensions was eliminated with a corresponding decrease to the gross carrying amount of the building assets. As a result of the extension in lease terms, the Company also extended the estimated useful lives of the building assets and the leasehold improvements to equal the amended lease term. | ||||||||
As a result of the sale of the Grid business on September 30, 2014 (see Note 5 - Discontinued Operations), the Company made the decision to cease use of one building within its corporate headquarters and recharacterize the building as a rental property. Consequently, management performed an impairment analysis on this building and determined that its carrying value was not recoverable. In performing this analysis, management analyzed the expected cash flows from different sub-lease scenarios using recent lease data for similar facilities in the area including market activity, expected tenant improvements and commissions, and period of time between recharacterization and lease up. As a result of this analysis,the Company recorded a write down of the building of $4.4 million during the three months ended September 30, 2014. | ||||||||
For the year ended December 31, 2014, the Company recorded depreciation expense associated with the building assets of $1.9 million. For each of the years ended December 31, 2013, and 2012, the Company recorded depreciation expense associated with the building assets of $2.0 million. As of December 31, 2014 and 2013, the net book value of the building assets was $7.7 million and $12.6 million, respectively. | ||||||||
Under the lease agreements, a portion of the total lease payments is accounted for as an operating lease of land and recorded as expense on a straight-line basis over the term of the lease. The remaining portions of the monthly lease payments are considered to be payments of principal and interest on the lease financing obligations. For each of the years ended December 31, 2014, 2013, and 2012, land lease expense was $741,000. For the years ended December 31, 2014, 2013, and 2012, principal reductions on the lease financing obligations were $2.2 million, $2.0 million and $1.9 million, respectively; and interest expense was $1.1 million, $1.2 million, and $1.4 million, respectively. See Note 11 for further information on commitments for future minimum lease payments associated with the lease financing obligations. | ||||||||
Impairment of certain long-lived assets of the Grid business | ||||||||
During the second quarter of 2014, in light of the facts mentioned in Note 5 - Discontinued Operations and Note 10 - Goodwill, prior to assessing the goodwill for impairment, the Company evaluated whether the long-lived assets of the Grid business were impaired. As the Company had not yet made a final decision between the two likely scenarios for the Grid business as of June 30, 2014, the Company assessed the realizability of long-lived assets using cash flows associated with two scenarios for this reporting unit (i.e. sale or wind down of the Grid business). The Company applied a probability weighting of two potential scenarios: cashflows from a wind down of the business versus cashflows from a potential sale of the Grid business. The wind down scenario also included an assessment of the residual value of the Grid business’ long-lived assets. The results of this analysis showed that the carrying value of the Grid business’ long-lived assets exceeded their fair value and accordingly the Company recorded a write down of property, equipment and other assets of $687,000 during the quarter ended June 30, 2014. This impairment charge has been reported as part of the discontinued operations for the year ended December 31, 2014. |
Acquisitions_Notes
Acquisitions (Notes) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Acquisitions [Abstract] | ||||
Business Combination Disclosure [Text Block] | 4. Acquisitions | |||
On August 15, 2014, the Company purchased 100% of the outstanding shares of Lumewave, Inc. (“Lumewave”). The acquisition was aimed at expanding the Company’s outdoor lighting business. The purchase price consisted of $1.8 million in cash paid at closing and $715,000 in common stock of the Company distributed at closing. Additionally, if certain gross margin targets for the Lumewave business are achieved during the period from August 16, 2014 through August 15, 2016, an additional $1.3 million in consideration will be payable to the selling shareholders of Lumewave. The fair value of this additional consideration was $925,000 as of September 30, 2014. The purchase price was subject to adjustment based on the final working capital balances. As a result of the final agreed-upon working capital balances, the selling shareholders agreed to repay $225,000, which was received by the Company during the quarter ended December 31, 2014. The cash purchase price has been adjusted for this $225,000 working capital adjustment. | ||||
The assets acquired and liabilities assumed have been reflected in the Company’s consolidated balance sheet at December 31, 2014, and the results of operations of Lumewave are included in the consolidated statement of operations since August 16, 2014. The following table summarizes the purchase price allocation based on estimated fair values of assets acquired and liabilities assumed at the acquisition date (amounts in thousands): | ||||
Amount | ||||
Cash and cash equivalents | $ | 630 | ||
Accounts receivable | 107 | |||
Inventory | 31 | |||
Other current assets | 259 | |||
Property and equipment | 23 | |||
Identifiable intangible assets | 1,500 | |||
Goodwill | 1,257 | |||
Accounts payable | (352 | ) | ||
Accrued liabilities | (255 | ) | ||
$ | 3,200 | |||
Identifiable intangible assets include $800,000 in developed technology, $500,000 in customer relationships, and $200,000 for trade names. The identifiable intangible assets will be amortized over a period of 6.5 years. Transaction costs associated with the acquisition were not material. The method used to value the identified intangibles was an income method approach which incorporated a discount rate ranging from 21% to 22%. | ||||
Pro forma information for this acquisition is not presented as the results of the acquired business are not material to the Company’s consolidated financial statements. | ||||
The contingent consideration was measured at fair value based on management’s estimate of achieving the specified targets and discounted to its then present value of $925,000. The contingent consideration is payable in a combination of cash and the Company’s common stock. Both the fair value of the cash and equity portions of the contingent consideration are recorded as a liability and will be remeasured each reporting period, with any change in their fair values recorded to earnings. As of December 31, 2014, the fair value of the contingent consideration was $968,000 and is recorded in Other long-term liabilities in the Company's Consolidated Balance Sheet. The equity component of the contingent consideration will ultimately be settled by issuing additional equity upon final determination of the targets being achieved.The number of shares to be issued will be based on the average closing price of the Company's stock during the six days prior to the acquisition date. |
Discontinued_Operations_Notes
Discontinued Operations (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Discontinued Operations [Abstract] | ||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 5. Discontinued Operations | |||||||
During the third quarter of 2014, the Company announced that it had reached an agreement to sell its Grid business in order to focus on its IIoT business and on future opportunities in this market. On September 30, 2014, the Company completed the sale of its Grid business to S&T AG ("S&T"), a publicly traded European IT systems provider. | ||||||||
The consideration received for the sale of the Grid business totaled approximately $4.9 million. The Company could receive an additional $1.0 million if the revenues of the Grid business exceed $50 million for the calendar year 2015. Based on the historical results of the Grid business and near-term estimates, management of the Company does not believe the sales targets will be achieved. Accordingly, the probability weighted fair value of the contingent consideration as of September 30, 2014 and December 31, 2014, was deemed to be zero. The Company also entered into a sub-lease arrangement as well as a supply arrangement for a component of the technology sold to S&T. These arrangements each have a term of 39 months and each has been considered indirect cashflows as they were deemed to be insignificant. | ||||||||
After the impairment charges taken in the second quarter of 2014 (see Notes 3 and 10), and net of transaction costs, the sale of the Grid business resulted in a loss of $254,000, recorded as loss on sale of discontinued operations for the year ended December 31, 2014. | ||||||||
The assets and liabilities of the Company's Grid division joint venture (see Note 18) were not included in the sale to S&T. The Company is in the process of negotiating the sale of the joint venture's remaining net assets and has recorded the fair value of the assets and liabilities of the joint venture as held for sale on the accompanying balance sheet at December 31, 2014. The remaining asset and liabilities principally relate to inventory, deferred revenues and the related deferred costs of sales and accrued liabilities. | ||||||||
As a result of restructuring activities during the third quarter of 2014, a total of $1.4 million of restructuring costs is included in loss from discontinued operations for the year ended December 31, 2014. Of this amount, approximately $1.1 million has been paid as of December 31, 2014, and the remaining balance will be paid during the first half of 2015. | ||||||||
The Company has classified the results of operations of the Grid business as discontinued operations for the years ended December 31, 2014 and 2013. For years prior to 2013, the Company’s organizational structure was set up to report and track information for a single reporting unit, the Company as a whole. In late 2013, the Company underwent a reorganization into two operating segments, Grid and IIoT, which resulted in, among other things, a complex movement affecting a majority of the Company's employees, a significant modification to the Company's departmental organization structure, and a completely new way of presenting and reviewing operating performance for the new organizations. Prior to 2013, the Grid business was not deemed a component of the Company as operations and cashflows could not be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company. Therefore, the reporting of discontinued operations for 2012 is not appropriate as the operations and cashflows from the Grid business were not clearly distinguished from the rest of the Company prior to 2013. Furthermore, for 2012 it was impracticable for us to break out the separate results for the Grid business as our company was organized and operating as a single segment and separate division specific financial information is unavailable. | ||||||||
The table below provides a summary of the components of the net loss from discontinued operations for 2014 and 2013 and excludes certain shared overhead costs that were previosuly allocated to the Grid segment as ASC 205-20 prohibits the allocation of general overhead costs to discontinued operations. | ||||||||
Year ended December 31, | ||||||||
2014 | 2013 | |||||||
Revenues (1) (2) | $ | 18,392 | $ | 40,303 | ||||
Cost of revenues | 11,774 | 24,988 | ||||||
Operating expenses | 15,614 | 18,994 | ||||||
Loss from discontinued operations before income taxes | (8,996 | ) | (3,679 | ) | ||||
Income taxes | — | — | ||||||
Loss on sale of Grid business | (254 | ) | — | |||||
Net loss from discontinued operations, net of income taxes | (9,250 | ) | (3,679 | ) | ||||
Net loss from discontinued operations attributable to non-controlling interest, net of income taxes | 535 | 808 | ||||||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | $ | (8,715 | ) | $ | (2,871 | ) | ||
(1) Includes related party amounts of $112,000 and $4.4 million for the years ended December 31, 2014 and 2013, respectively. | ||||||||
(2) Revenues for the Grid business were $85.2 million for the year ended December 31, 2012 | ||||||||
The sale agreement contains certain indemnification provisions related to the Grid business whereby the Company may have obligations related to the period it owned the Grid business. The Company believes the estimated fair value of these indemnification provisions are minimal and accordingly, no liability is recorded for these indemnifications as of December 31, 2014. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||||||||
Accumulated other comprehensive income (loss) [Text Block] | . Accumulated Other Comprehensive Income (Loss) | |||||||||||
Foreign currency translation adjustment | Unrealized gain (loss) on available-for-sale securities | Accumulated Other Comprehensive Income (Loss) | ||||||||||
(Amount in thousands) | (Amount in thousands) | (Amount in thousands) | ||||||||||
Beginning balance at December 31, 2012 | $ | 501 | $ | 8 | $ | 509 | ||||||
Change during the year | 506 | — | 506 | |||||||||
Ending balance at December 31, 2013 | $ | 1,007 | $ | 8 | $ | 1,015 | ||||||
Change during the year | (1,431 | ) | (15 | ) | (1,446 | ) | ||||||
Ending balance at December 31, 2014 | $ | (424 | ) | $ | (7 | ) | $ | (431 | ) |
Stockholders_Equity_and_Employ
Stockholders' Equity and Employee Stock Option Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Stockholders' Equity and Employee Stock Option Plans [Abstract] | ||||||||||||||
Stockholders' Equity and Employee Stock Option Plans | . Stockholders’ Equity and Employee Stock Option Plans | |||||||||||||
a) Preferred Stock | ||||||||||||||
As of December 31, 2014, the Company was authorized to issue 5,000,000 shares of new $0.01 par value preferred stock, of which none was outstanding. | ||||||||||||||
(b) Common Stock | ||||||||||||||
As of December 31, 2014, the Company was authorized to issue 100,000,000 shares of $0.01 par value common stock, of which 43,983,651 were outstanding. | ||||||||||||||
(c) Stock Option Programs | ||||||||||||||
The Company grants equity compensation awards under the 1997 Stock Plan (the “1997 Plan”). A more detailed description of the 1997 Plan can be found below. | ||||||||||||||
Stock option and other equity compensation grants are designed to reward employees, officers, directors, and certain non-employee consultants for their long-term contribution to the Company, to align their interest with those of the Company's stockholders in creating stockholder value, and to provide incentives for them to remain with the Company. The number and frequency of equity compensation grants is based on competitive practices, operating results of the Company, and accounting regulations. | ||||||||||||||
Historically, the Company has issued new shares upon the exercise of stock options. However, treasury shares are also available for issuance, although the Company does not currently intend to use treasury shares for this purpose. | ||||||||||||||
1997 Stock Plan | ||||||||||||||
During 1997, the Company adopted the 1997 Stock Plan for employees, officers, directors, and non-employee consultants, which was amended and restated in May 2004, and further amended and restated in April 2013. During 2013, the Board determined that it was in the best interest of the Company and the stockholders to amend and restate the Plan. In setting the share reserve under the amended Plan, the Company considered the number of outstanding awards and forecasted grants under the Plan. As of March 31, 2013 a total of 20,972,838 shares of its Common Stock were reserved for issuance under the Plan, of which 5,505,404 shares were subject to outstanding awards and 15,467,434 shares remained available for new awards under the Plan. Upon approval of the amended Plan by the shareholders, the total number of shares issuable under the Plan after March 31, 2013, was reduced from 20,972,838 to 10,905,404, including the 5,505,404 shares subject to current outstanding awards plus an additional 5,400,000 shares for future new awards. As of December 31, 2014, there were 5,152,177 shares available for future new awards, which we expect will be sufficient to meet expected grants by the Company under the Plan for the next one to two years. However future business needs may affect this projection. In determining size of the share reserve, the Company took into account historical grant practices and the rate of granting equity awards (“burn rate”). | ||||||||||||||
Under the amended and restated Plan, the annual “evergreen” share replenishment was eliminated prospectively and a limitation on the number of shares issuable as restricted stock units and restricted shares (referred to as “full value awards”) was added to the Plan. The latter change would be effected by adding a “fungible share” ratio to the Plan whereby grants of full value awards after May 21, 2013, reduce the number of shares issuable under the Plan by 1.7 shares for each share subject to such awards. If shares subject to such awards are subsequently forfeited or otherwise would return to the Plan reserve, the unvested or cancelled shares will be returned to the share reserve as 1.7 shares for each share forfeited or otherwise returned to the Plan share reserve. | ||||||||||||||
As of December 31, 2014, a total of 9,042,398 shares of Common Stock were reserved for issuance under the 1997 Plan. Incentive stock options to purchase shares of common stock may be granted at not less than 100% of the fair market value. Options granted from May 6, 2003 to March 31, 2013, generally have a term of five years from the date of grant. All other options granted generally have a term of ten years. The exercise price of stock options granted under the 1997 Plan is determined by the Board of Directors (or a Committee of the Board of Directors), but will be at least equal to 100% of the fair market value per share of common stock on the date of grant (or at least 110% of such fair market value for an incentive stock option granted to a stockholder with greater than 10% voting power of all stock), except that up to 10% of the aggregate number of shares reserved for issuance under the 1997 Plan (including shares that have been issued or are issuable in connection with options exercised or granted under the 1997 Plan) may have exercise prices that are from 0% to 100% of the fair market value of the common stock on the date of grant. Options generally vest ratably over four years. | ||||||||||||||
The 1997 Plan also allows for the issuance of stock purchase rights and options that are immediately exercisable through execution of a restricted stock purchase agreement. Shares purchased pursuant to a stock purchase agreement generally vest ratably over four years. In the event of termination of employment, the Company, at its discretion, may repurchase unvested shares at a price equal to the original issuance price. In addition, the 1997 Plan allows for the issuance of stock appreciation rights (“SARs”), restricted stock awards (“RSAs”), and restricted stock units (“RSUs”). SARs are rights to receive, in cash or shares of the Company's common stock, as designated on the grant date, the appreciation in fair market value of common stock between the exercise date and the date of grant. To date, the Company has only issued SARs that can be settled in shares of the Company's common stock. SARs may be granted alone or in tandem with options. The exercise price of a SAR will be at least equal to 100% of the fair market value per share of common stock on the date of grant. SARs issued by the Company generally vest in equal, annual installments over four years, and expire on the five year anniversary of the grant date. RSUs and RSAs are awards that result in a payment to a participant, generally in the form of an issuance of shares of the Company's common stock, at such time as specified performance goals or other vesting criteria are achieved or the awards otherwise vest. RSUs and RSAs issued by the Company generally vest in equal, annual installments over four years. In addition, certain of these RSU and RSA grants have additional financial-based performance requirements that must be met before vesting can occur. RSUs and RSAs with performance-based vesting conditions expire no later than the five year anniversary of the grant date if the performance criteria have not been met. | ||||||||||||||
(d) Stock Award Activity | ||||||||||||||
The following table summarizes stock award activity under all plans for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||
Options Outstanding | ||||||||||||||
Shares Available for Grant | Number Outstanding | Weighted-Average Exercise Price Per Share | ||||||||||||
BALANCE AT DECEMBER 31, 2011 | 13,047,736 | 3,103,472 | $ | 8.71 | ||||||||||
Options granted | (1,883,388 | ) | 1,883,388 | 3.21 | ||||||||||
RSUs granted | (700,987 | ) | — | — | ||||||||||
Options and stock appreciation rights cancelled | 1,047,545 | (1,047,545 | ) | 8.73 | ||||||||||
RSUs cancelled | 315,817 | — | — | |||||||||||
1998 Directors Plan shares expired | (60,000 | ) | — | — | ||||||||||
Additional shares reserved | 1,700,859 | — | — | |||||||||||
BALANCE AT DECEMBER 31, 2012 | 13,467,582 | 3,939,315 | $ | 6.08 | ||||||||||
Options granted | (1,785,728 | ) | 1,785,728 | 2.34 | ||||||||||
RSUs granted | (702,665 | ) | — | — | ||||||||||
Options and stock appreciation rights cancelled | 1,620,194 | (1,620,194 | ) | 6.89 | ||||||||||
RSUs cancelled | 471,867 | — | — | |||||||||||
Unissued shares eliminated from plan | (15,542,434 | ) | — | — | ||||||||||
1998 Directors Plan shares expired | (75,000 | ) | — | — | ||||||||||
Additional shares reserved | 7,122,039 | — | — | |||||||||||
BALANCE AT DECEMBER 31, 2013 | 4,575,855 | 4,104,849 | $ | 4.13 | ||||||||||
Options granted | (468,000 | ) | 468,000 | 2.46 | ||||||||||
RSUs granted | (2,191,535 | ) | — | — | ||||||||||
Options and stock appreciation rights cancelled | 1,970,662 | (1,970,662 | ) | 4.7 | ||||||||||
RSUs cancelled | 1,265,195 | — | — | |||||||||||
Options exercised | — | (5,395 | ) | 3.17 | ||||||||||
BALANCE AT DECEMBER 31, 2014 | 5,152,177 | 2,596,792 | $ | 3.4 | ||||||||||
The total intrinsic value of options and SARs exercised during the year ended December 31, 2014, 2013, and 2012, was approximately $3,000, $0, and $0, respectively. During the years ended December 31, 2013, and 2012, no options or SARs were exercised. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. | ||||||||||||||
The following table provides additional information regarding RSU and RSA activity for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||
Number Nonvested and Outstanding | Weighted-Average Grant Date Fair-Value | |||||||||||||
BALANCE AT DECEMBER 31, 2011 | 2,521,593 | $ | 8.4 | |||||||||||
RSUs and RSAs granted | 700,987 | 3.25 | ||||||||||||
RSUs vested and released | (977,149 | ) | 8.48 | |||||||||||
RSUs cancelled | (315,817 | ) | 7.8 | |||||||||||
BALANCE AT DECEMBER 31, 2012 | 1,929,614 | $ | 6.56 | |||||||||||
RSUs granted | 419,056 | 2.34 | ||||||||||||
RSUs vested and released | (522,286 | ) | 6.99 | |||||||||||
RSUs cancelled | (458,287 | ) | 6.19 | |||||||||||
BALANCE AT DECEMBER 31, 2013 | 1,368,097 | $ | 5.22 | |||||||||||
RSUs granted | 1,289,138 | 2.51 | ||||||||||||
RSUs vested and released | (500,528 | ) | 5.78 | |||||||||||
RSUs cancelled | (863,278 | ) | 3.69 | |||||||||||
BALANCE AT DECEMBER 31, 2014 | 1,293,429 | $ | 3.32 | |||||||||||
The fair value of each RSU and RSA granted to employees was estimated on the date of grant by multiplying the number of shares granted times the fair market value of the Company's stock on the grant date. | ||||||||||||||
The total intrinsic value of RSUs and RSAs vested and released during the years ended December 31, 2014, 2013, and 2012 was approximately $1.2 million, $1.2 million, and $3.7 million, respectively. The intrinsic value of vested and released RSUs and RSAs is calculated by multiplying the fair market value of the Company's stock on the vesting date by the number of shares vested. As of December 31, 2014, the number of RSUs and RSAs outstanding and expected to vest was 1,242,853, with a total intrinsic value of $2.1 million. The intrinsic value of the outstanding and expected to vest RSUs and RSAs is calculated based on the market value of the Company's closing stock price of $1.70 as of December 31, 2014, the last market trading day of 2014. | ||||||||||||||
The following table provides additional information for significant ranges of outstanding and exercisable stock options and SARs as of December 31, 2014: | ||||||||||||||
Exercise | Number | Weighted | Weighted | |||||||||||
Price Range | Outstanding | Average | Average | Aggregate Intrinsic Value | ||||||||||
Remaining | Exercise | |||||||||||||
Contractual Life | Price per Share | |||||||||||||
(in years) | ||||||||||||||
$2.03-$2.23 | 238,000 | 8.88 | $ | 2.13 | $ | — | ||||||||
2.24 | 440,000 | 9.25 | 2.24 | — | ||||||||||
2.29-2.34 | 18,400 | 9.37 | 2.33 | — | ||||||||||
2.37 | 585,200 | 8.44 | 2.37 | — | ||||||||||
2.42-2.86 | 130,000 | 8.97 | 2.52 | — | ||||||||||
3.17 | 609,992 | 7.29 | 3.17 | — | ||||||||||
3.25-5.53 | 235,200 | 4.62 | 4.28 | — | ||||||||||
7.46 | 250,000 | 2.63 | 7.46 | — | ||||||||||
8.2 | 40,000 | 0.4 | 8.2 | — | ||||||||||
$9.08 | 50,000 | 1.39 | 9.08 | — | ||||||||||
Outstanding | 2,596,792 | 7.22 | $ | 3.4 | $ | — | ||||||||
Vested and expected to vest | 2,474,785 | 7.2 | $ | 3.45 | $ | — | ||||||||
Exercisable | 1,116,197 | 5.57 | $ | 4.5 | $ | — | ||||||||
The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company's closing stock price of $1.70 as of December 31, 2014, which would have been received by the option holders had all option holders exercised their options as of that date. |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock Based Compensation [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | . Stock-based Compensation | ||||||||||||||||
(a) Valuation of Options, SARs, and RSUs Granted | |||||||||||||||||
The Company has elected to use the BSM option-pricing model to estimate the fair value of stock options and SARs that it grants. The BSM model incorporates various assumptions including volatility, expected term of the option from the date of grant to the time of exercise, risk-free interest rates, and dividend yields. The weighted average fair value of options and SARs granted during the years ended December 31, 2014, 2013, and 2012, was $1.47, $1.39, and $1.85, respectively, and was determined using the following weighted average assumptions: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected dividend yield | —% | —% | —% | ||||||||||||||
Risk-free interest rate | 2.00% | 1.60% | 0.90% | ||||||||||||||
Expected volatility | 66.30% | 64.80% | 63.90% | ||||||||||||||
Expected term (in years) | 5.98 | 6.16 | 6.1 | ||||||||||||||
The expected dividend yield reflects the fact that the Company has not paid any dividends in the past and does not currently intend to pay dividends in the foreseeable future. The risk-free interest rate assumption is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. The expected volatility is based on both the historical volatility of the Company's common stock over the most recent period commensurate with the expected life of the option as well as on implied volatility calculated from the market traded options on the Company's stock. The expected term has been calculated by applying the simplified method calculation to the new 10-year term option grants made during 2013 and 2014, as the Company does not have relevant and adequate exercise history for such options. Prior to this, the expected term had been calculated by applying a Monte Carlo simulation model that incorporated the Company's historical data on post-vest exercise activity and employee termination behavior. | |||||||||||||||||
The grant date fair value of RSUs and RSAs granted to employees is determined by multiplying the fair market value of the Company's stock on the grant date times the number of RSUs and RSAs awarded. During 2014, the Company issued a limited number of RSUs to non-employee consultants. The final measurement date for these awards is determined at the earlier of the date at which a commitment for performance by the consultant to earn the RSUs is reached, or the date at which the consultant's performance necessary for the RSUs to vest has been completed. Between the date of issuance and the final measurement date, which is expected to be the date the consultants' performance is complete and the awards vest, the awards are remeasured based on the fair market value of the Company's stock at each reporting date. During the year ended December 31, 2014, awards granted to non-employee consultants and the related share-based payment expense was not significant. | |||||||||||||||||
(b) Equity Compensation Expense for RSUs and RSAs with Financial or other Performance-Based Vesting Requirements | |||||||||||||||||
As of December 31, 2014, there were 700,800 non-vested RSUs and RSAs that were granted in 2010, 2011, and 2014 which were subject to service-based vesting conditions as well as certain financial or other performance-based vesting requirements that must be achieved before vesting can occur. The following table contains pertinent information regarding these outstanding awards as of December 31, 2014 (in thousands except for number of awards granted): | |||||||||||||||||
Grant Date | # of Awards Granted and Outstanding | Fair Value on Grant Date | Cumulative Expense Recognized | Unearned Compensation Expense | Latest Date Performance Condition Could be Met | ||||||||||||
Aug-10 | 80,000 | $ | 596 | $ | — | $ | 596 | Apr-15 | |||||||||
Nov-11 | 50,000 | 277 | — | 277 | Apr-15 | ||||||||||||
Jun-14 | 570,800 | 1,404 | 324 | 1,080 | Dec-14 | ||||||||||||
Total | 700,800 | $ | 2,277 | $ | 324 | $ | 1,953 | ||||||||||
Through June 30, 2012, cumulative compensation expense of $264,000 associated with the 130,000 unvested RSUs and RSAs granted in 2010 and 2011 had been recognized. From the date of grant through June 30, 2012, the Company had believed it was probable that the associated performance requirements would be achieved and therefore recognized expense on these awards. During the third quarter of 2012, the Company believed that the performance condition was no longer probable of achievement, however the Company had also not yet determined that the performance condition was improbable of achievement. Accordingly, expense recognition was discontinued beginning in the third quarter of 2012. As of December 31, 2013, the Company determined that the performance condition was improbable of achievement and therefore the cumulative compensation expense of $264,000 associated with these awards was reversed in the quarter ended December 31, 2013. The Company continues to believe that the performance condition is improbable of achievement and therefore no expense associated with these awards was recorded during the year ended December 31, 2014. | |||||||||||||||||
In addition to the awards issued in 2010 and 2011, there were 953,300 non-vested RSAs with a grant date fair value of $2.3 million that were granted on June 10, 2014, which were also subject to service-based vesting conditions as well as certain performance-based vesting requirements that must be achieved before vesting can occur. These awards vest over a nine month period ending March 14, 2015, provided the performance conditions have been met as of December 31, 2014. Of these RSAs issued in June 2014, 302,000 awards with a total fair value of approximately $743,000 were granted to employees of the Grid business. As of September 30, 2014, in conjunction with the sale of the Grid business, the Company reversed all compensation expense previously recognized associated with these awards as they will not vest. Additionally, as of December 31, 2014, 80,500 awards with a grant date fair value of approximately $198,000 were granted to employees who terminated their employment during 2014. Accordingly, the Company reversed all compensation expense previously recognized associated with these awards as they will not vest. As of December 31, 2014, the Company determined that the performance conditions associated with a portion of the remaining unvested awards with a grant date fair value of $965,000 will not be achieved and therefore any previously recorded expense associated with these awards was reversed and no additional expense was recorded during the year ended December 31, 2014. | |||||||||||||||||
c) Expense Allocation | |||||||||||||||||
Compensation expense for all share-based payment awards has been recognized using the accelerated multiple-option approach. As stock-based compensation expense recognized in the Consolidated Statements of Operations for the years ended December 31, 2014, 2013, and 2012 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures have been estimated based on historical experience. | |||||||||||||||||
As of December 31, 2014, total compensation cost related to non-vested stock options and other equity based awards not yet recognized was $2.0 million, which is expected to be recognized over the next 1.1 years on a weighted-average basis. | |||||||||||||||||
The following table summarizes stock-based compensation expense for the years ended December 31, 2014, 2013, and 2012 and its allocation within the consolidated statements of operations (in thousands): | |||||||||||||||||
Year ended 31 December, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Cost of revenues | $ | 292 | $ | 198 | $ | 678 | |||||||||||
Product development | (73 | ) | 156 | 2,304 | |||||||||||||
Sales and marketing | 206 | 84 | 1,896 | ||||||||||||||
General and administrative | 1,114 | 967 | 2,098 | ||||||||||||||
Discontinued operations | (342 | ) | 1,133 | — | |||||||||||||
Total stock based compensation expense related to stock options and share awards | 1,197 | 2,538 | 6,976 | ||||||||||||||
Tax benefit | — | — | — | ||||||||||||||
Stock-based compensation expense related to stock options and share awards, net of tax | $ | 1,197 | $ | 2,538 | $ | 6,976 | |||||||||||
As of December 31, 2014, approximately $8,000 and $2,000 of stock-based compensation expense was capitalized as part of the cost of inventory and deferred cost of goods sold, respectively. As of December 31, 2013, approximately $42,000 and $8,000 of stock-based compensation expense was capitalized as part of the cost of inventory and deferred cost of goods sold, respectively. |
Significant_Customers
Significant Customers | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Risks and Uncertainties [Abstract] | ||||||
Significant Customers | . Significant Customers | |||||
The Company markets its products and services throughout the world to original equipment manufacturers (OEMs) and systems integrators in the building, industrial, transportation, utility/home, and other automation markets. During the years ended December 31, 2014, 2013 and 2012, the Company had two customers that accounted for a significant portion of its revenues: Avnet Europe Comm VA (“Avnet”), the Company’s primary distributor of its IIoT products in Europe, and Enel Distribuzione Spa ("Enel"), an Italian utility company. For the years ended December 31, 2014, 2013 and 2012 the percentage of the Company’s revenues attributable to sales made to these customers was as follows: | ||||||
Year ended December 31, | ||||||
2014 | 2013 | 2012 | ||||
Avnet | 26.20% | 26.60% | 9.50% | |||
Enel | 7.70% | 16.10% | 4.50% | |||
Total | 33.90% | 42.70% | 14.00% | |||
Avnet is an indirect subsidiary of Avnet, Inc., a New York corporation, which is a distributor of electronic parts, enterprise computing and storage products, and embedded subsystems. Our agreement with Avnet has been renewed periodically and is now set to expire in March 2015. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill [Abstract] | |||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | 10. Goodwill and Intangible Assets | ||||||||||
Goodwill | |||||||||||
The carrying amount of goodwill as of December 31, 2014, 2013, and 2012 relates to four acquisitions, including ARIGO Software GmbH (“ARIGO”) in 2001, BeAtHome in 2002, MTC in 2003, and Lumewave, Inc. in 2014. The goodwill acquired as part of the ARIGO transaction is valued in Euros, and is therefore subject to foreign currency translation gains and losses. | |||||||||||
The changes in the carrying amount of goodwill, net, for the years ended December 31, 2014 and 2013 are as follows (in thousands): | |||||||||||
Total | |||||||||||
Balance as of December 31, 2012 | $ | 8,276 | |||||||||
Unrealized foreign currency translation gain | 114 | ||||||||||
Balance as of December 31, 2013 | 8,390 | ||||||||||
Unrealized foreign currency translation loss | (323 | ) | |||||||||
Goodwill impairment - Grid division | (3,388 | ) | |||||||||
Goodwill associated with Lumewave acquisition | 1,257 | ||||||||||
Balance as of December 31, 2014 | $ | 5,936 | |||||||||
Effective in the fourth quarter of 2013, the Company changed the way it managed the business and re-organized to focus the business on two operating segments - Grid and IIoT. As a result, the Company, with the assistance of an external service provider, reallocated goodwill of the Company to the Grid and IIoT operating segments using a relative fair value approach. Each operating segment's fair value was determined based on comparative market values and discounted cash flows. Goodwill is tested for impairment using a two-step approach. The Company evaluates goodwill, at a minimum, on an annual basis during the first quarter and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit's carrying amount, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using a combination of the income approach and the market approach. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. There was no indication of impairment when goodwill was reallocated to the new operating segments, as the respective fair values of each substantially exceed their carrying values (including goodwill) as of December 31, 2013. | |||||||||||
For the quarter ended June 30, 2104, the Company concluded there were indicators of potential goodwill impairment for the Company’s Grid business, including continued weakness and increased uncertainty in the Grid market; changes in the extent and manner of use of the unit's long-lived assets; and changes in our long-term strategy for the Grid business. As a result of identifying indicators of impairment, the Company performed an impairment test of goodwill as of June 30, 2014. | |||||||||||
In performing Step 1 of the impairment test, the Company estimated the fair value of the reporting unit using the income approach. The income approach is based on a discounted cash flow analysis and calculates the fair value of the reporting unit by estimating the after-tax cash flows attributable to the reporting unit and then discounting the after-tax cash flows to a present value, using a weighted average cost of capital (“WACC”). The cash flows used in the income approach were based on two scenarios, cash flows associated with a winding down of the business and cash flows associated with a sale of the business. Management's assumptions included forecasted revenues and operating income for the wind down scenario and estimated proceeds from the sale of the business based on known third-party interest. We calculated the fair value for the Grid business by using a probability weighted average of the estimated fair value from both scenarios, with significantly higher weight placed on the wind down scenario. Ultimately, in the third quarter of 2014, the Company was able to locate a buyer for the Grid business during the third quarter of 2014, which led to the disposition of the business on September 30, 2014. | |||||||||||
Based on the above analysis, it was determined that the carrying value of the Grid business, including goodwill, exceeded the fair value of the reporting unit, requiring the Company to perform Step 2 of the goodwill impairment test to measure the amount of impairment loss, if any. In performing Step 2 of the goodwill impairment test, the Company compared the implied fair value of the reporting unit’s goodwill to its carrying value of goodwill. This test resulted in a non-cash, goodwill impairment charge of $3.4 million and a write-off of all goodwill associated with the Grid division, which was recognized during the three months ended June 30, 2014. This impairment has been reported as part of the discontinued operations results for the year ended December 31, 2014. As a result, the Company has no goodwill remaining related to the Grid business, with the entire remaining goodwill balance of $5.9 million being attributable to the IIoT reporting unit. | |||||||||||
Lastly, the addition to goodwill of $1.3 million during the year was due to the acquisition of Lumewave, Inc (see Note 4 for additional details). There have been no goodwill impairment losses related to the IIoT reporting unit. | |||||||||||
Identifiable Intangible Assets | |||||||||||
The Company's identifiable intangible assets as of December 31, 2014, relates to the acquisition of Lumewave, Inc. in August 2014 (see Note 4 for additional details). The identifiable intangible assets include $800,000 in developed technology, $500,000 in customer relationships, and $200,000 for trade names. | |||||||||||
The changes in the carrying amount of identifiable intangible assets, net for the year ended December 31, 2014 is as follows (in thousands): | |||||||||||
Total | |||||||||||
Balance as of December 31, 2013 | $ | — | |||||||||
Intangible assets acquired | 1,500 | ||||||||||
Amortization | (87 | ) | |||||||||
Balance as of December 31, 2014 | $ | 1,413 | |||||||||
Intangible assets other than goodwill are amortized on a straight-line basis over the following estimated remaining useful lives. The following table presents the details of the Company's finite-lived intangible assets as of December 31, 2014 (in thousands, except for weighted-average remaining useful life): | |||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted-Average Remaining Useful Life (in years) | ||||||||
Developed technology | $ | 800 | $ | 46 | $ | 754 | 6.12 | ||||
Customer relationships | 500 | 29 | 471 | 6.12 | |||||||
Trade names | 200 | 12 | 188 | 6.12 | |||||||
Total | $ | 1,500 | $ | 87 | $ | 1,413 | 6.12 | ||||
The following table presents the amortization of finite-lived intangible assets included in the Consolidated Statements of Operations for the year ended December 31, 2014 (in thousands): | |||||||||||
Total | |||||||||||
Cost of revenues | $ | 46 | |||||||||
Operating expenses | 41 | ||||||||||
Total | $ | 87 | |||||||||
The following table presents the estimated future amortization of finite-lived intangible assets as of December 31, 2014 (in thousands): | |||||||||||
Estimated Future Amoritization | |||||||||||
2015 | $ | 231 | |||||||||
2016 | 231 | ||||||||||
2017 | 231 | ||||||||||
2018 | 231 | ||||||||||
2019 | 231 | ||||||||||
2020 and thereafter | $ | 258 | |||||||||
Total | $ | 1,413 | |||||||||
Goodwill Disclosure [Text Block] | The following table presents the estimated future amortization of finite-lived intangible assets as of December 31, 2014 (in thousands): | ||||||||||
Estimated Future Amoritization | |||||||||||
2015 | $ | 231 | |||||||||
2016 | 231 | ||||||||||
2017 | 231 | ||||||||||
2018 | 231 | ||||||||||
2019 | 231 | ||||||||||
2020 and thereafter | $ | 258 | |||||||||
Total | $ | 1,413 | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Commitments And Contingencies | . Commitments and Contingencies | |||||||||||
(a) Lease Commitments | ||||||||||||
As discussed in Note 3, the Company accounts for the leases of its corporate headquarters facilities as lease financing obligations. As of December 31, 2014, the future minimum lease payments for these lease financing obligations were as follows (in thousands): | ||||||||||||
2015 | $ | 3,411 | ||||||||||
2016 | 3,486 | |||||||||||
2017 | 3,604 | |||||||||||
2018 | 3,735 | |||||||||||
2019 | 4,196 | |||||||||||
2020 | 651 | |||||||||||
Total payments | $ | 19,083 | ||||||||||
Amount representing interest | (2,962 | ) | ||||||||||
Present value of future minimum lease payments | $ | 16,121 | ||||||||||
Lease financing obligations classified as current | $ | 2,459 | ||||||||||
Lease financing obligations classified as long-term | $ | 13,662 | ||||||||||
The Company also leases facilities under operating leases for its sales, marketing, and product development personnel located elsewhere within the United States and in several foreign countries throughout Europe and Asia, including a land lease for accounting purposes associated with the Company's corporate headquarters facilities. These operating leases expire on various dates through 2020, and in some instances are cancelable with advance notice. Lastly, the Company also leases certain equipment and, for some of its sales personnel, automobiles. These operating leases are generally less than five years in duration. | ||||||||||||
As of December 31, 2014, future minimum lease payments under all operating leases, including $4.1 million related to the land lease associated with the Company's corporate headquarters facilities (see Note 3), were as follows (in thousands): | ||||||||||||
2015 | $ | 1,148 | ||||||||||
2016 | 911 | |||||||||||
2017 | 899 | |||||||||||
2018 | 817 | |||||||||||
2019 | 776 | |||||||||||
2020 | 194 | |||||||||||
Total payments | $ | 4,745 | ||||||||||
Although certain of the operating lease agreements provide for escalating rent payments over the term of the lease, rent expense under these agreements is recognized on a straight-line basis. As of December 31, 2014, the Company has accrued approximately $180,000 of deferred rent related to these agreements, of which approximately $32,000 is reflected in current liabilities while the remainder is reflected in other long-term liabilities in the accompanying consolidated balance sheet. As of December 31, 2013, the Company has accrued approximately $215,000 of deferred rent related to these agreements, of which approximately $35,000 is reflected in current liabilities while the remainder is reflected in other long-term liabilities in the accompanying consolidated balance sheet. | ||||||||||||
As discussed in Note 5 - Discontinued Operations, in conjunction with the sale of its Grid division, the Company entered into a sublease with S&T for a portion of its corporate headquarters facility. As of December 31, 2014, the minimum sublease rental payments S&T is required to make during the remaining 36 month term of the sublease total approximately $1.9 million. | ||||||||||||
The components of net rent expense for all operating leases for the years ended December 31, 2014, 2013, and 2012, were as follows (in thousands): | ||||||||||||
Year ended 31 December | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Rent expense | $ | 1,483 | $ | 1,527 | $ | 1,682 | ||||||
Sublease rentals | (202 | ) | — | — | ||||||||
Rent expense included in discontinued operations | (160 | ) | (145 | ) | — | |||||||
Rent expense, net | $ | 1,121 | $ | 1,382 | $ | 1,682 | ||||||
(b) Royalties | ||||||||||||
The Company has certain royalty commitments associated with the shipment and licensing of certain of its products. Royalty expense is generally based on a dollar amount per unit shipped or a percentage of the underlying revenue. Royalty expense, which is recorded as a component of cost of revenues in the Company's Consolidated Statements of Operations, was approximately $500,000, $418,000, and $508,000 for the years ended December 31, 2014, 2013, and 2012, respectively. During the years ended December 31, 2014, and 2013, royalty expense reported in discontinued operations was approximately $1,000 and $52,000, respectively | ||||||||||||
The Company will continue to be obligated for royalty payments in the future associated with the shipment and licensing of certain of its products. The Company is currently unable to estimate the maximum amount of these future royalties. However, such amounts will continue to be dependent on the number of units shipped or the amount of revenue generated from these products. | ||||||||||||
(c) Guarantees | ||||||||||||
In the normal course of business, the Company provides indemnifications of varying scope to its customers against claims of intellectual property infringement made by third parties arising from the use of its products. Historically, costs related to these indemnification provisions have not been significant. However, the Company is unable to estimate the maximum potential impact of these indemnification provisions on its future results of operations. | ||||||||||||
As permitted under Delaware law, the Company has entered into agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was serving, at the Company's request in such capacity. The indemnification period covers all pertinent events and occurrences during the officer's or director's lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. However, the Company has directors and officers insurance coverage that would enable it to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements in excess of the applicable insurance coverage is minimal, if any. | ||||||||||||
(d) Taxes | ||||||||||||
The Company conducts operations in many tax jurisdictions throughout the world. In many of these jurisdictions, non-income based taxes such as property taxes, sales and use taxes, and value-added taxes are assessed on the Company's operations in that particular location. While the Company strives to ensure compliance with these various non-income based tax filing requirements, there have been instances where potential non-compliance exposures have been identified. In accordance with accounting principles generally accepted in the United States of America, the Company makes a provision for these exposures when it is both probable that a liability has been incurred and the amount of the exposure can be reasonably estimated. To date, such provisions have been immaterial, and the Company believes that, as of December 31, 2014, it has adequately provided for such contingencies. However, it is possible that the Company's results of operations, cash flows, and financial position could be harmed if one or more non-compliance tax exposures are asserted by any of the jurisdictions where the Company conducts its operations. | ||||||||||||
(e) Legal Actions | ||||||||||||
In April 2009, the Company received notice that the receiver for two companies that filed for the Italian law equivalent of bankruptcy protection in May 2004, Finmek Manufacturing SpA and Finmek Access SpA (collectively, the “Finmek Companies”), had filed a lawsuit under an Italian “claw back” law in Padua, Italy against the Company, seeking the return of approximately $16.7 million in payments received by the Company in the ordinary course of business for components sold by the Company to the Finmek Companies prior to the bankruptcy filing. The Finmek Companies were among Enel’s third party meters manufacturers, and from time to time through January 2004, the Company sold components to the Finmek Companies that were incorporated into the electricity meters that were manufactured by the Finmek Companies and sold to Enel SpA for the Enel Project. The Company believed that the Italian claw back law was not applicable to its transactions with the Finmek Companies, and the claims of the Finmek Companies’ receiver were without merit. However, it was subsequently brought to the Company's attention that a substantial percentage of claw back cases reviewed by the local courts, which are located in the jurisdiction in which the Finmek Companies were headquartered, were being decided in favor of the Finmek Companies. To avoid any possibility of an adverse ruling against the Company, as well as to limit administrative inconvenience and curtail litigation costs, in April 2013, with the consent of its Board of Directors, the Company decided to settle this matter. The Company reached an agreement with respect to a tentative financial settlement of $3.5 million and recognized a charge for this amount in the first quarter of 2013. This settlement was formalized and became effective in the fourth quarter of 2013. It was paid in two substantially equal installments, one in the fourth quarter of 2013 and the second in the fourth quarter of 2014. The Company did not admit that the Italian claw back law applied to its circumstances as part of this settlement. | ||||||||||||
From time to time, in the ordinary course of business, the Company may be subject to other legal proceedings, claims, investigations, and other proceedings, including claims of alleged infringement of third-party patents and other intellectual property rights, and commercial, employment, and other matters. In accordance with generally accepted accounting principles, the Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. While the Company believes it has adequately provided for such contingencies as of December 31, 2014, the amounts of which were immaterial, it is possible that the Company’s results of operations, cash flows, and financial position could be harmed by the resolution of any such outstanding claims. | ||||||||||||
Line of Credit | ||||||||||||
Until December 2014, the Company maintained a $5.0 million line of credit with its primary bank. The line of credit was secured by a collateral of the first priority on $6.3 million of the Company's investments placed in a separate account. In December 2014, the Company cancelled this line of credit. It continues to maintain an operating credit line of $1.0 million with its primary bank for company credit card purchases, as well as 1 standby letter of credit for $113,000. These lines of credit continue to be secured by a collateral of the first priority on $1.4 million of the Company's investments (presented as restricted investments in the Consolidated Balance Sheets). The restricted investments are classified as current assets due to the contractual duration of the undelying credit agreement. No amounts ever been drawn against the standby letters of credit issued by the bank. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | 12. Income Taxes | |||||||||||
The provision for income taxes attributable to continuing operations is based upon loss from continuing operations before provision for income taxes as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (15,592 | ) | $ | (14,358 | ) | $ | (13,614 | ) | |||
Foreign | 192 | (70 | ) | 652 | ||||||||
$ | (15,400 | ) | $ | (14,428 | ) | $ | (12,962 | ) | ||||
There were no income taxes attributable to discontinued operations in any of the periods presented. | ||||||||||||
The provision for income taxes consists of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal: | ||||||||||||
Current | $ | — | $ | — | $ | — | ||||||
Deferred | — | — | — | |||||||||
Total federal provision | — | — | — | |||||||||
State: | ||||||||||||
Current | 16 | 17 | 5 | |||||||||
Deferred | — | — | — | |||||||||
Total state provision | 16 | 17 | 5 | |||||||||
Foreign: | ||||||||||||
Current | 195 | 294 | 214 | |||||||||
Deferred | — | — | — | |||||||||
Total foreign provision | 195 | 294 | 214 | |||||||||
Total income tax expense | $ | 211 | $ | 311 | $ | 219 | ||||||
The provision for income taxes differs from the amount estimated by applying the statutory Federal income tax rate to loss before taxes as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal tax at statutory rate of 35% | $ | (5,390 | ) | $ | (5,050 | ) | $ | (4,537 | ) | |||
State taxes, net of federal benefit | (577 | ) | 17 | 5 | ||||||||
U.S.-Foreign rate differential | 100 | 342 | 87 | |||||||||
Change in Valuation Allowance | 4,115 | 5,862 | 4,530 | |||||||||
Research and Development credits | 357 | (1,241 | ) | — | ||||||||
Permanent items | 1,560 | 406 | — | |||||||||
Others | 46 | (25 | ) | 134 | ||||||||
Total income tax expense | $ | 211 | $ | 311 | $ | 219 | ||||||
As of December 31, 2014 and 2013, a valuation allowance has been recorded against 100% of the gross deferred tax assets as a result of uncertainties regarding the realization of the asset balance. As of December 31, 2014 and 2013, the Company had no significant deferred tax liabilities. The components of the net deferred income tax asset are as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Net operating loss carry forwards | $ | 72,058 | $ | 60,961 | ||||||||
Tax credit carry forwards | 26,571 | 26,869 | ||||||||||
Fixed and intangible assets | 6,424 | 7,246 | ||||||||||
Capitalized research and development costs | 58 | 58 | ||||||||||
Reserves and other cumulative temporary differences | 15,535 | 19,380 | ||||||||||
Gross deferred income tax assets | 120,646 | 114,514 | ||||||||||
Valuation allowance | (120,646 | ) | (114,514 | ) | ||||||||
Net deferred income tax assets | $ | — | $ | — | ||||||||
As of December 31, 2014, part of the Company's valuation allowance on deferred tax assets pertains to certain tax credits and net operating loss carry forwards. In the future, it will reduce the valuation allowance associated with these credits and losses upon the earlier of the period in which it utilizes them to reduce the amount of income tax it would otherwise be required to pay on its income tax returns, or when it becomes more likely than not that the deferred tax assets are realizable. In addition, the Internal Revenue Code of 1986, as amended, contains provisions that limit the net operating loss and credit carryforwards available for use in any given period upon the occurrence of certain events, including a significant change in ownership interests. The Company performed an analysis of the ownership changes in 2001. Since that time, some ownership changes may have occurred, which could cause certain of the Company's net operating loss and credit carryforwards to be limited in future periods. | ||||||||||||
As of December 31, 2014, the Company had net operating loss carryforwards of $228.9 million for federal income tax reporting purposes and $101.0 million for state income tax reporting purposes, which expire at various dates through 2034. Of these amounts, a significant portion represents federal and state tax deductions from stock-based compensation. The tax benefit from these deductions will be recorded as an adjustment to additional paid-in capital in the year in which the benefit is realized. In addition, as of December 31, 2014, the Company had approximately $11.0 million and $15.4 million of tax credit carryforwards for increased research expenditures for federal and California purposes, respectively. The federal research tax credits will expire at various dates if not utilized by 2034 and the state tax credit can be carried over indefinitely. In accordance with current Internal Revenue Code rules, federal net operating loss carryforwards must be utilized in full before federal research and development tax credits can be used to offset current tax liabilities. As a result, depending on the Company's future taxable income in any given year, some or all of the federal research tax credits, as well as portions of the Company's federal and state net operating loss carryforwards, may expire before being utilized. | ||||||||||||
Amounts held by foreign subsidiaries are generally subject to United States income taxation on repatriation to the United States. The Company currently intends to permanently reinvest its undistributed earnings from its foreign subsidiaries outside the United States and United States income taxes have not been provided on cumulative total earnings of $10.8 million. It is not practicable to determine the income tax liability that might be incurred if these earnings were to be distributed. | ||||||||||||
The following is a rollforward of the Company's uncertain tax positions for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Balance as of the beginning of the year | $ | 2,138 | $ | 3,382 | ||||||||
Tax positions related to current year: | ||||||||||||
Additions | 76 | 31 | ||||||||||
Reductions | (48 | ) | — | |||||||||
Tax positions related to prior years: | ||||||||||||
Additions | — | — | ||||||||||
Reductions | (232 | ) | (571 | ) | ||||||||
Settlements | — | — | ||||||||||
Lapses in statute of limitations | (575 | ) | (704 | ) | ||||||||
Balance as of the end of the year | $ | 1,359 | $ | 2,138 | ||||||||
Included in the balance of total unrecognized tax benefits at December 31, 2014 are potential benefits of $469,000, which if recognized, would affect the effective rate on income from continuing operations. | ||||||||||||
On December 31, 2014, the Company had accrued interest and penalties related to the uncertain tax benefits of approximately $99,000. During 2014, the Company decreased the prior year balance by $35,000 due to foreign currency fluctuations. During 2013 and 2012, the Company decreased the prior year balance by $6,000 and $71,000, respectively, due to lapses in statutes of limitations and changes in methodology.The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. | ||||||||||||
The Company is subject to taxation in the United States and various state and foreign jurisdictions. In the United States, the tax years from 1995 remain open to examination by federal and most state tax authorities due to certain net operating loss and credit carryforward positions. In the foreign jurisdictions, the number of tax years open to examination by local tax authorities ranges from three to six years. |
Warranty_Reserves
Warranty Reserves | 12 Months Ended |
Dec. 31, 2014 | |
Warranty Reserves [Abstract] | |
Product Warranty Disclosure [Text Block] | 13. Warranty Reserves |
When evaluating the reserve for warranty costs, management takes into consideration the term of the warranty coverage, the quantity of product in the field that is currently under warranty, historical return rates, and historical costs of repair. In addition, certain other applicable factors, such as technical complexity, may also be taken into consideration when historical information is not yet available for recently introduced products. Estimated reserves for warranty costs are generally provided for when the associated revenue is recognized. In addition, additional warranty reserves may be established when the Company becomes aware of a specific warranty related problem, such as a product recall. Such additional warranty reserves are based on the Company's current estimate of the total out-of-pocket costs expected to be incurred to resolve the problem, including, but not limited to, costs to replace or repair the defective items and shipping costs. The reserve for warranty costs was $143,000 as of December 31, 2014 and $561,000 as of December 31, 2013. Of these amounts, $143,000 and $515,000 were included in Accrued Liabilities as of December 31, 2014 and 2013, respectively. The remaining $46,000 of the prior year balance was included in Other Long-Term Liabilities as of December 31, 2013. |
Related_Parties
Related Parties | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Parties | 14. Related Parties |
In June 2000, the Company entered into a stock purchase agreement with Enel pursuant to which Enel purchased 3.0 million newly issued shares of its common stock for $130.7 million. The closing of this stock purchase occurred on September 11, 2000. At the closing, Enel had agreed that it would not, except under limited circumstances, sell or otherwise transfer any of those shares for a specified time period. That time period expired September 11, 2003. To the Company’s knowledge, Enel has disposed none of its 3.0 million shares. Under the terms of the stock purchase agreement, Enel has the right to nominate one member of the Company’s board of directors. A representative of Enel served on the board until March 14, 2012; no Enel representative is presently on the board. | |
At the time the company entered into the stock purchase agreement with Enel, it also entered into a research and development agreement with an affiliate of Enel (the “R&D Agreement”). Under the terms of the R&D Agreement, the company cooperated with Enel to integrate its LONWORKS technology into Enel’s remote metering management project in Italy, the Contatore Elettronico. The company completed the sale of its components and products for the deployment phase of the Contatore Elettronico project during 2005. During 2006, the company supplied Enel and its designated manufacturers with limited spare parts for the Contatore Elettronico system. In October 2006, the company entered into a new development and supply agreement and a software enhancement agreement with Enel. Under the development and supply agreement, Enel and its contract manufacturers purchase additional electronic components and finished goods from the company. Under the software enhancement agreement, the company provides software enhancements to Enel for use in its Contatore Elettronico system. The software enhancement was assigned to S&T as part of the sale of our Grid division in September 2014. The development and supply agreement expired in December 2014, although delivery of products can extend beyond then and the agreement may be extended under certain circumstances. | |
For the years ended December 31, 2014, 2013, and 2012, the Company recognized revenue from products and services sold to Enel and its designated manufacturers of approximately $3.0 million, $7.4 million, and $6.5 million, respectively. As of December 31, 2014 and 2013, $158,000 and $1.6 million of the Company’s total accounts receivable balance related to amounts owed by Enel and its designated manufacturers, respectively. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | 15. Restructuring | |||||||||||||||
In May 2012, the Company undertook cost cutting measures by initiating a headcount reduction of 42 full-time employees worldwide, to be terminated between May 2012 and December 2013. In connection with this restructuring plan, in 2012, the Company recorded restructuring charges of approximately $1.2 million related to termination benefits for these personnel. | ||||||||||||||||
The following table sets forth a summary of restructuring activities related to the Company’s May 2012 restructuring program in 2014 (in thousands): | ||||||||||||||||
December 31, 2013 | Costs Incurred | Cash Payments | 31-Dec-14 | |||||||||||||
Termination benefits | $ | 49 | $ | — | $ | 49 | $ | — | ||||||||
The following table sets forth a summary of restructuring activities related to the Company’s May 2012 restructuring program in 2013 (in thousands): | ||||||||||||||||
December 31, 2012 | Costs Incurred | Cash Payments | 31-Dec-13 | |||||||||||||
Termination benefits | $ | 149 | $ | — | $ | 100 | $ | 49 | ||||||||
On February 12, 2013, the Company undertook further restructuring actions affecting approximately 43 employees to be terminated between February 2013 and December 2013, as part of an overall plan to reshape the Company for the future. In connection with this restructuring, the Company recorded restructuring charges of approximately $2.5 million related to termination benefits for these personnel during the year ended December 31, 2013. | ||||||||||||||||
The following table sets forth a summary of restructuring activities related to the Company's February 2013 restructuring program (in thousands): | ||||||||||||||||
December 31, 2012 | Costs Incurred | Cash Payments | 31-Dec-13 | |||||||||||||
Termination benefits | — | 2,522 | 2,522 | — | ||||||||||||
On September 30, 2014, and again in the fourth quarter of 2014, in connection with the sale of the Grid business, the Company undertook further restructuring actions affecting approximately 44 employees to be terminated between September 2014 and March 31, 2015, as part of the strategic plan to focus on the Company's IIoT business. In connection with this restructuring, the Company recorded restructuring charges as noted in the table below, of which $1.4 million was included in the net loss from discontinued operations for the year ended December 31, 2014. | ||||||||||||||||
The following table sets forth a summary of restructuring activities related to the Company’s 2014 restructuring program (in thousands): | ||||||||||||||||
31-Dec-13 | Costs Incurred | Cash Payments | 31-Dec-14 | |||||||||||||
Termination benefits | — | 1,841 | 1,140 | 701 | ||||||||||||
Accrued restructuring charges as of December 31, 2014 comprise the remaining liability balance from the 2014 restructurings and are reflected in accrued liabilities on the Company’s Consolidated Balance Sheet as of December 31, 2014. The Company expects to pay these accrued termination benefits through the first half of 2015. |
Valuation_and_Qualifying_accou
Valuation and Qualifying accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 16. Valuation and Qualifying Accounts (in thousands) | |||||||||||||||
Balance at | Charged/ | Write-Off of | Balance at | |||||||||||||
Beginning | (Credited) to Revenues and Expenses | Previously | End of | |||||||||||||
of Period | Provided | Period | ||||||||||||||
Accounts | ||||||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||
Allowance for Doubtful Accounts | $ | 353 | $ | (46 | ) | $ | 250 | $ | 57 | |||||||
Allowance for Customer Returns and Sales Credits | $ | 530 | $ | 3,729 | $ | 3,858 | $ | 401 | ||||||||
Year Ended December 31, 2013: | ||||||||||||||||
Allowance for Doubtful Accounts | $ | 430 | $ | 55 | $ | 132 | $ | 353 | ||||||||
Allowance for Customer Returns and Sales Credits | $ | 429 | $ | 5,375 | $ | 5,274 | $ | 530 | ||||||||
Year Ended December 31, 2012: | ||||||||||||||||
Allowance for Doubtful Accounts | $ | 390 | $ | 48 | $ | 8 | $ | 430 | ||||||||
Allowance for Customer Returns and Sales Credits | $ | 1,411 | $ | 4,265 | $ | 5,247 | $ | 429 | ||||||||
16. Valuation and Qualifying Accounts (in thousands) | ||||||||||||||||
Balance at | Charged/ | Write-Off of | Balance at | |||||||||||||
Beginning | (Credited) to Revenues and Expenses | Previously | End of | |||||||||||||
of Period | Provided | Period | ||||||||||||||
Accounts | ||||||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||
Allowance for Doubtful Accounts | $ | 353 | $ | (46 | ) | $ | 250 | $ | 57 | |||||||
Allowance for Customer Returns and Sales Credits | $ | 530 | $ | 3,729 | $ | 3,858 | $ | 401 | ||||||||
Year Ended December 31, 2013: | ||||||||||||||||
Allowance for Doubtful Accounts | $ | 430 | $ | 55 | $ | 132 | $ | 353 | ||||||||
Allowance for Customer Returns and Sales Credits | $ | 429 | $ | 5,375 | $ | 5,274 | $ | 530 | ||||||||
Year Ended December 31, 2012: | ||||||||||||||||
Allowance for Doubtful Accounts | $ | 390 | $ | 48 | $ | 8 | $ | 430 | ||||||||
Allowance for Customer Returns and Sales Credits | $ | 1,411 | $ | 4,265 | $ | 5,247 | $ | 429 | ||||||||
Segment_Disclosure
Segment Disclosure | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Disclosure | 17. Segment Disclosure | |||||||||||
ASC Topic 280, Segment Reporting, establishes standards for reporting information about operating segments, products and services, geographic areas of operations and major customers. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing business performance. The Company’s chief operating decision-making group is the Executive Staff, which is comprised of the Chief Executive Officer and his direct reports (CODM). | ||||||||||||
In late 2013, the Company underwent a reorganization into two operating segments, Grid and IIoT, which resulted in, among other things, a complex movement affecting a majority of the Company's employees, a significant modification to the Company's departmental organization structure, and a completely new way of presenting and reviewing operating performance for the new organizations. Prior to this point, the Company was not structured nor was it managed in a “product line” manner. Therefore, for years prior to 2013, the Company’s organizational structure was set up to report and track information for a single reporting unit, the Company as a whole. Thus, management believes that restatement of information for the Grid business for years prior to 2013 is impracticable. In September 2014, the Company sold its Grid business to S&T, thus reducing the number of reportable segments from two to one. For the years ending December 31, 2014 and 2013, the Grid business is captured in discontinued operations. | ||||||||||||
The Company operates in one principal industry segment - the IIoT segment, which is its reportable segment. The IIoT segment sells products and services aimed at Embedded Control Platforms, such as LONWORKS and IzoT, which include components, control nodes, and development software, and which are sold typically to Original Equipment Manufacturers (OEMs) to build into their industrial application solutions. These platforms allow a single device to be brought to market as a LONWORKS®, BACnet®, or other protocol-supporting device; and it can be used with any underlying wired or wireless communications link, such as Ethernet, RS-485, Wi-Fi, 15.4, or Echelon’s free topology (FT) standard. The IzoT platform provides a smooth migration path for legacy devices to the IIoT. The product portfolio includes Smart Transceivers, SmartServer Controllers, LNS and OpenLNS Operating Systems, Outdoor Lighting Controllers, SmartServer Segment Controllers and PL/RF Bridges. | ||||||||||||
The Company operates in three main geographic areas: the Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific / Japan (“APJ”). Each geographic area provides products and services to the Company’s customers located in the respective region. The Company’s long-lived assets include property and equipment, goodwill, purchased technology, and deposits on its leased facilities. Long-lived assets are attributed to geographic areas based on the country where the assets are located. As of December 31, 2014 and December 31, 2013, long-lived assets of approximately $15.6 million and $24.6 million, respectively, were domiciled in the United States. Long-lived assets for all other locations are not material to the consolidated financial statements. | ||||||||||||
In North America, the Company sells its products primarily through a direct sales organization and select third-party electronics representatives. Outside North America, the Company sells its products through direct sales organizations in EMEA and APJ, value-added resellers, and local distributors. Revenues are attributed to geographic areas based on the country where the products are shipped to or the services are delivered. Summary revenue information by geography for the years ended December 31, 2014, 2013 and 2012 is as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Americas | ||||||||||||
United States | $ | 10,680 | $ | 11,787 | $ | 32,981 | ||||||
Other Americas | 2,074 | 1,380 | 2,485 | |||||||||
Total Americas | 12,754 | 13,167 | 35,466 | |||||||||
EMEA | ||||||||||||
Germany | 10,733 | 12,789 | 13,097 | |||||||||
Finland | 77 | 95 | 38,958 | |||||||||
Denmark | 66 | 55 | 10,939 | |||||||||
Other EMEA | 3,618 | 6,955 | 21,195 | |||||||||
Total EMEA | 14,494 | 19,894 | 84,189 | |||||||||
APJ | ||||||||||||
China | $ | 3,225 | $ | 5,286 | $ | 6,848 | ||||||
Other APJ | $ | 8,257 | $ | 7,510 | $ | 7,514 | ||||||
Total APJ | $ | 11,482 | $ | 12,796 | $ | 14,362 | ||||||
Total | $ | 38,730 | $ | 45,857 | $ | 134,017 | ||||||
For information regarding the Company’s major customers, please refer to Note 9, Significant Customers. |
Joint_Venture
Joint Venture | 12 Months Ended |
Dec. 31, 2014 | |
Less Than Wholly Owned Subsidiary [Abstract] | |
Joint Venture | 18. Joint Venture |
On March 23, 2012, the Company entered into an agreement with Holley Metering Limited (“Holley Metering”), a designer and manufacturer of energy meters in China, to create a joint venture, Zhejiang Echelon-Holley Technology Co., Ltd. (“Echelon-Holley”). The joint venture's intended focus was on the development and sales of smart energy products for China and rest-of-world markets. The Company has a 51% ownership interest in the joint venture and exercises controlling influence. Therefore, Echelon-Holley’s accounts are included in the Company’s Consolidated Financial Statements as of December 31, 2014, and for the three years then ended. Holley Metering’s interests in Echelon-Holley’s net assets are reported in the noncontrolling interest in subsidiary on the Consolidated Balance Sheet as of December 31, 2014 and 2013. Net loss attributable to the noncontrolling interest in Echelon-Holley was $535,000, $808,000, and $363,000 during years ended December 31, 2014, 2013, and 2012, respectively. | |
As of December 31, 2014, Echelon and Holley Metering had contributed in cash a total of approximately $4,000,000 in Share Capital, as defined, to Echelon-Holley in proportion to their respective ownership interests. | |
In connection with the decision to sell the Grid business announced in the third quarter of 2014, the Company is in the process of selling the remaining net assets of the joint venture and has recorded the fair value of the assets and liabilities of the joint venture as held for sale on the accompanying balance sheet at December 31, 2014. The major classes of assets and liabilities classified as held for sale are inventory, deferred revenues and the related deferred costs of sales and accrued liabilities. In addition, the net loss attributable to the non-controlling interests have also been presented as part of discontinued operations in the consolidated statement of operations for the years ended December 31, 2014 and 2013. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) (Notes) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Quarterly Financial Information [Text Block] | 19. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED): | ||||||||||||||||||||||||||||||||
The following tables set forth certain consolidated statement of operations data for each of the quarters in 2014 and 2013. This information has been derived from the Company's quarterly unaudited consolidated financial statements. The quarterly unaudited consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements included in this report and include all adjustments, consisting only of normal recurring adjustments, that we consider necessary for a fair presentation of such information when read in conjunction with the annual audited consolidated financial statements and notes appearing in this report. The operating results for any quarter do not necessarily indicate the results for any subsequent period or for the entire fiscal year. | |||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||
Dec-14 | Sep-14 | June | March | Dec-13 | Sep-13 | June | March | ||||||||||||||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||||||||||||||||||
Consolidated Statement of Operations Data: | |||||||||||||||||||||||||||||||||
Revenues | 9,647 | 9,178 | 8,981 | 10,924 | 12,518 | 10,177 | 11,398 | 11,764 | |||||||||||||||||||||||||
Cost of revenues | 4,316 | 4,180 | 3,784 | 4,538 | 4,928 | 3,795 | 4,639 | 4,653 | |||||||||||||||||||||||||
Gross profit | 5,331 | 4,998 | 5,197 | 6,386 | 7,590 | 6,382 | 6,759 | 7,111 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Product development | 2,286 | 2,305 | 2,170 | 2,749 | 2,830 | 2,711 | 2,258 | 3,123 | |||||||||||||||||||||||||
Sales and marketing | 2,498 | 2,160 | 2,265 | 2,175 | 2,130 | 2,232 | 2,237 | 2,462 | |||||||||||||||||||||||||
General and administrative | 2,847 | 3,538 | 3,579 | 3,770 | 3,599 | 3,925 | 3,234 | 3,886 | |||||||||||||||||||||||||
Loss on write down of property, equipment and other | — | 4,409 | — | — | — | — | — | — | |||||||||||||||||||||||||
Litigation charges | — | — | — | — | — | — | — | 3,452 | |||||||||||||||||||||||||
Restructuring charges | 164 | 227 | — | — | — | — | — | 2,254 | |||||||||||||||||||||||||
Total operating expenses | 7,795 | 12,639 | 8,014 | 8,694 | 8,559 | 8,868 | 7,729 | 15,177 | |||||||||||||||||||||||||
Loss from continuing operations | (2,464 | ) | (7,641 | ) | (2,817 | ) | (2,308 | ) | (969 | ) | (2,486 | ) | (970 | ) | (8,066 | ) | |||||||||||||||||
Interest and other income (expense), net | 269 | 719 | (69 | ) | 11 | (216 | ) | (606 | ) | (164 | ) | 284 | |||||||||||||||||||||
Interest expense on lease financing obligations | (261 | ) | (271 | ) | (280 | ) | (288 | ) | (297 | ) | (305 | ) | (312 | ) | (321 | ) | |||||||||||||||||
Loss from continuing operations before provision for income taxes | (2,456 | ) | (7,193 | ) | (3,166 | ) | (2,585 | ) | (1,482 | ) | (3,397 | ) | (1,446 | ) | (8,103 | ) | |||||||||||||||||
Income tax expense (benefit) | 97 | 33 | 106 | (25 | ) | 55 | 113 | 106 | 37 | ||||||||||||||||||||||||
Net loss from continuing operations attributable to Echelon Corporation Stockholders | (2,553 | ) | (7,226 | ) | (3,272 | ) | (2,560 | ) | (1,537 | ) | (3,510 | ) | (1,552 | ) | (8,140 | ) | |||||||||||||||||
Net loss from discontinued operations, net of income taxes | — | (2,141 | ) | (5,579 | ) | (1,530 | ) | (2,704 | ) | (269 | ) | 549 | (1,255 | ) | |||||||||||||||||||
Net loss from discontinued operations attributable to non-controlling interest, net of income taxes | — | 179 | 239 | 117 | 218 | 266 | 176 | 148 | |||||||||||||||||||||||||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | — | (1,962 | ) | (5,340 | ) | (1,413 | ) | (2,486 | ) | (3 | ) | 725 | (1,107 | ) | |||||||||||||||||||
Net loss attributable to Echelon Corporation stockholders | $ | (2,553 | ) | $ | (9,188 | ) | $ | (8,612 | ) | $ | (3,973 | ) | $ | (4,023 | ) | $ | (3,513 | ) | $ | (827 | ) | $ | (9,247 | ) | |||||||||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ | (0.06 | ) | $ | (0.17 | ) | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.19 | ) | |||||||||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | $ | — | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.03 | ) | $ | (0.06 | ) | $ | — | $ | 0.02 | $ | (0.03 | ) | ||||||||||||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ | (0.06 | ) | $ | (0.21 | ) | $ | (0.20 | ) | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.08 | ) | $ | (0.02 | ) | $ | (0.22 | ) | |||||||||
Shares used in net loss per share calculation: | |||||||||||||||||||||||||||||||||
Basic | 43,904 | 43,507 | 43,325 | 43,264 | 43,252 | 43,184 | 43,000 | 42,929 | |||||||||||||||||||||||||
Diluted | 43,904 | 43,507 | 43,325 | 43,264 | 43,252 | 43,184 | 43,000 | 42,929 | |||||||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Basis of Presentation | |||||||||||
The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and a subsidiary in which it has a controlling interest (collectively referred to as the “Company”). The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries and other consolidated entities have been eliminated in consolidation. | ||||||||||||
In the third quarter of 2014, the Company announced and completed the sale of its Grid business to S&T AG, a publicly traded European IT systems provider with an existing focus on smart energy products and services. The results of the Grid business for the years ended December 31, 2014 and 2013 are now classified as discontinued operations. Prior to 2013, the Grid business was not deemed a component of the Company as operations and cashflows could not be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company. Therefore, the reporting of discontinued operations for 2012 is not appropriate as the operations and cashflows from the Grid business were not clearly distinguished from the rest of the Company prior to 2013. Furthermore, for 2012 it was impracticable for the Company to break out the separate results for the Grid business as it was organized and operating as a single segment and separate division specific financial information is unavailable. As a result of this transaction, the Company now operates in one reporting segment- the IIoT segment. | ||||||||||||
Risks and uncertainties [Policy Text Block] | Risks and Uncertainties | |||||||||||
The Company’s operations and performance depend significantly on worldwide economic conditions and their impact on purchases of the Company’s products, as well as the ability of suppliers to provide the Company with products and services in a timely manner. The impact of any of the matters described below could have an adverse effect on the Company’s business, results of operations and financial condition. | ||||||||||||
• | Approximately 33.9% of net revenue for the year ended December 31, 2014 were derived from two customers. Customers in any of the Company’s target market sectors may experience unexpected reductions in demand for their products and consequently reduce their purchases from the Company, resulting in either the loss of a significant customer or a notable decrease in the level of sales to a significant customer. In addition, if any of these customers are unable to obtain the necessary capital to operate their business, they may be unable to satisfy their payment obligations to the Company. | |||||||||||
• | The Company utilizes third-party contract electronic manufacturers to manufacture, assemble, and test its products. If any of these third-parties were unable to obtain the necessary capital to operate their business, they may be unable to provide the Company with timely services or to make timely deliveries of products. | |||||||||||
• | From time to time, the Company has experienced shortages or interruptions in supply for certain products or components used in the manufacture of the Company’s products that have been or will be discontinued. In order to ensure an adequate supply of these items, the Company has occasionally purchased quantities of these items that are in excess of the Company’s then current estimate of short-term requirements. If the long-term requirements do not materialize as originally expected, or if the Company develops alternative solutions that no longer employ these items and the Company is not able to dispose of these excess products or components, the Company could be subject to increased levels of excess and obsolete inventories. | |||||||||||
• | Recently, in our effort to manage our costs and inventory risks, we decreased our inventory levels of certain products. If there is an unexpected increase in demand for these items, we might not be able to supply our customers with products in a timely manner. | |||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | |||||||||||
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions, and estimates that affect amounts reported in the Consolidated Financial Statements and accompanying notes. Significant estimates and judgments are used for revenue recognition, performance-based equity compensation, inventory valuation, intangible asset valuation, contingent consideration valuation, and other loss contingencies. In order to determine the carrying values of assets and liabilities that are not readily apparent from other sources, the Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances. Actual results experienced by the Company may differ materially from management’s estimates. | ||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards | |||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08 (“ASU 2014-08”), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the new guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect of an entity’s operations and financial results and is disposed of or classified as held for sale. ASU 2014-08 also introduces several new disclosures. The guidance is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. The Company has not early adopted this guidance and when it does so, does not expect ASU 2014-08 to have a material impact on its consolidated financial statements. | ||||||||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | ||||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | |||||||||||
The Company’s revenues are derived from the sale and license of its products and to a lesser extent, from fees associated with training, technical support, and custom software design services offered to its customers. Product revenues consist of revenues from hardware sales and software licensing arrangements. Service revenues consist of product technical support (including software post-contract support services), training, and custom software development services. | ||||||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery to the customer’s carrier (and acceptance, as applicable) has occurred, the sales price is fixed or determinable, collectability is probable, and there are no post-delivery obligations. For non-distributor hardware sales, including sales to third party manufacturers, these criteria are generally met at the time of delivery to the customer’s carrier. However, for arrangements that contain contractual acceptance provisions, revenue recognition may be delayed until acceptance by the customer or the acceptance provisions lapse unless the Company can objectively demonstrate that the contractual acceptance criteria have been satisfied, which is generally accomplished by establishing a history of acceptance for the same or similar products. For sales made to the Company’s distributor partners, revenue recognition criteria are generally met at the time the distributor sells the products through to its end-use customer. Service revenue is recognized as the training services are performed, or ratably over the term of the support period. | ||||||||||||
The Company accounts for the rights of return, price protection, rebates, and other sales incentives offered to distributors of its products as a reduction in revenue. With the exception of sales to distributors, the Company’s customers are generally not entitled to return products for a refund. For sales to distributors, due to contractual rights of return and other factors that impact its ability to make a reasonable estimate of future returns and other sales incentives, revenues are not recognized until the distributor has shipped its products to the end customer. | ||||||||||||
The Company’s multiple deliverable revenue arrangements have historically been primarily related to sales of its Grid products. As noted above, the Company completed the sale of its Grid division to S&T AG in September 2014. These historical transactions typically included, within a single arrangement, a combination of some or all of the following deliverables: electricity meters, data concentrators and related hardware (collectively, the “Hardware”); NES system software; Element Manager software; post-contract customer support (“PCS”) for the NES system and Element Manager software; extended warranties for the Hardware; and, occasionally, specified enhancements or upgrades to software used in the NES system. With the exception of the NES system software, each of these deliverables was considered a separate unit of accounting. The NES system software functions together with an electricity meter to deliver its essential functionality and any related software license fee is charged for on a per meter basis. Therefore, the NES system software and an electricity meter are combined and considered a single unit of accounting. The Element Manager software is not considered to be part of an electricity meter’s essential functionality and, therefore, Element Manager software and any related PCS has been accounted for under industry specific software revenue recognition guidance. However, all other NES system deliverables are no longer within the scope of industry specific software revenue recognition guidance. | ||||||||||||
The Company allocates revenue to each element in a multiple-element arrangement based upon their relative selling price. The Company determines the selling price for each deliverable using vendor specific objective evidence (“VSOE”) of selling price or third party evidence (“TPE”) of selling price, if it exists. If neither VSOE nor TPE of selling price exists for a deliverable, the Company uses its best estimated selling price (“BESP”) for that deliverable. Since the use of the residual method is eliminated under the accounting standards, any discounts offered by the Company are allocated to each of the deliverables. Revenue allocated to each element is then recognized when the basic revenue recognition criteria is met for the respective element. | ||||||||||||
Consistent with its methodology under previous accounting guidance, if available, the Company determines VSOE of fair value for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial contractual arrangement. The Company currently estimates selling prices for its PCS and extended warranties based on VSOE of fair value. | ||||||||||||
In many instances, the Company is not currently able to obtain VSOE of fair value for all deliverables in an arrangement with multiple elements. This may be due to the Company infrequently selling each element separately or not pricing products within a narrow range. When VSOE cannot be established, the Company attempts to estimate the selling price of each element based on TPE. TPE would consist of competitor prices for similar deliverables when sold separately. Generally, the Company’s offerings contain significant differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine the stand-alone selling prices for similar products of its competitors. Therefore, the Company is typically not able to obtain TPE of selling price. | ||||||||||||
When the Company is unable to establish a selling price using VSOE or TPE, which was generally the case for the Hardware and certain specified enhancements or upgrades to the Company’s NES software, the Company uses its BESP in determining the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. | ||||||||||||
The Company establishes pricing for its products and services by considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and industry pricing practices. The determination of pricing also includes consultation with and formal approval by the Company’s management, taking into consideration the Company’s go-to-market strategy. These pricing practices apply to both the Company’s Hardware and software products. | ||||||||||||
Based on an analysis of pricing stated in contractual arrangements for its Hardware products in historical multiple-element transactions and, to a lesser extent, historical standalone transactions, the Company has concluded that it typically prices its Hardware within a narrow range of discounts when compared to the price listed on the Company’s standard pricing grid for similar deliverables (i.e., similar configuration, volume, geography, etc.). Therefore, the Company has determined that, for its current Hardware for which VSOE or TPE is not available, the Company’s BESP is generally comprised of prices based on a narrow range of discounts from pricing stated in its pricing grid. | ||||||||||||
When establishing BESP for the Company’s specified software enhancements or upgrades, the Company considers multiple factors including, but not limited to, the relative value of the features and functionality being delivered by the enhancement or upgrade as compared to the value of the software product to which the enhancement or upgrade relates, as well as the Company’s pricing practices for NES system software PCS packages, which may include rights to the specified enhancements or upgrades. | ||||||||||||
The Company regularly reviews VSOE and has established a review process for TPE and BESP. The Company maintains internal controls over the establishment and updates of these estimates. There were no material impacts during the year ended December 31, 2014, resulting from changes in VSOE, TPE, or BESP, nor does the Company expect a material impact from such changes in the near term. | ||||||||||||
Deferred Revenue and Deferred Cost of Goods Sold [Policy Text Block] | Deferred Revenue and Deferred Cost of Goods Sold | |||||||||||
Deferred revenue consists substantially of amounts billed or payments received in advance of revenue recognition. Deferred cost of goods sold related to deferred product revenues includes direct product costs and applied overhead. Once all revenue recognition criteria have been met, the deferred revenues and associated cost of goods sold are recognized. | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation | |||||||||||
The Company accounts for employee stock-based payment transactions in which the Company receives employee services in exchange for equity instruments of the enterprise. Stock-based compensation cost for restricted stock units (“RSUs”) granted to employees is measured based on the closing fair market value of the Company's common stock on the date of grant. Stock-based compensation cost for RSUs granted to non-employee consultants is measured based on the closing fair market value of the Company's common stock at the earlier of the date at which a commitment for performance by the consultant to earn the RSUs is reached, or the date at which the consultant's performance necessary for the RSUs to vest has been completed. Stock-based compensation cost for stock options and stock appreciation rights granted to employees (“SARs”) is estimated at the grant date based on each award's fair-value as calculated using the Black-Scholes-Merton (“BSM”) option-pricing model. The Company recognizes stock-based compensation cost as expense using the accelerated multiple-option approach over the requisite service period. Further information regarding stock-based compensation can be found in Note 8 of these Notes to Consolidated Financial Statements. | ||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | |||||||||||
The Company considers bank deposits, money market investments and all debt and equity securities with remaining maturities of three months or less at the date of purchase to be cash and cash equivalents. | ||||||||||||
Investment, Policy [Policy Text Block] | Short-Term Investments | |||||||||||
The Company classifies its investments in marketable debt securities as available-for-sale. Securities classified as available-for-sale are reported at fair value with the related unrealized holding gains and losses, net of tax, being included in accumulated other comprehensive income (loss). | ||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements | |||||||||||
The Company measures at fair value its cash equivalents and available-for-sale investments using a valuation hierarchy based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's own assumptions. These two types of inputs have created the following fair value hierarchy: | ||||||||||||
• | Level 1 - Quoted prices for identical instruments in active markets; | |||||||||||
• | Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |||||||||||
• | Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||
This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when estimating fair value. Other than cash and money market funds, the Company's only financial assets or liabilities required to be measured at fair value on a recurring basis at December 31, 2014, are fixed income available-for-sale securities. See Note 2 of these Notes to Consolidated Financial Statements for a summary of the input levels used in determining the fair value of the Company's cash equivalents and short-term investments as of December 31, 2014. | ||||||||||||
Inventory, Policy [Policy Text Block] | Inventories | |||||||||||
Inventories are stated at the lower of cost (first‑in, first‑out) or market and include material, labor and manufacturing overhead. When required, provisions are made to reduce excess and obsolete inventories to their estimated net realizable value. Inventories consist of the following (in thousands): | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Purchased materials | $ | 402 | $ | 1,343 | ||||||||
Finished goods | 2,841 | 5,102 | ||||||||||
$ | 3,243 | $ | 6,445 | |||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Including Goodwill | |||||||||||
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the asset's carrying value to the future undiscounted cash flows the asset is expected to generate. If long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. For the year ended December 31, 2014, the Company recognized impairments associated with certain long-lived assets associated with its Grid division and a building that the Company ceased use of at its corporate headquarters facility (see Note 3 for additional information regarding the impairment). For the two years ended December 31, 2013, the Company recognized no impairments of long-lived assets. | ||||||||||||
Costs in excess of the fair value of tangible and other identifiable intangible assets acquired and liabilities assumed in a purchase business combination are recorded as goodwill, which is tested for impairment using a two-step approach. The Company evaluates goodwill, at a minimum, on an annual basis during the first quarter and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit's carrying amount, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using a combination of the income approach and the market approach. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. For the year ended December 31, 2014, the Company recognized a goodwill impairment associated with the Grid division (see Note 10 for additional information regarding the impairment). For the two years ended December 31, 2013, the Company recognized no impairments of goodwill. | ||||||||||||
Software to be Sold, Leased, or Otherwise Marketed, Policy [Policy Text Block] | Software Development Costs | |||||||||||
For software to be sold, leased, or otherwise marketed, the Company capitalizes eligible computer software development costs upon the establishment of technological feasibility, which the Company has defined as completion of a working model. For the three years ended December 31, 2014, costs that were eligible for capitalization were insignificant and, thus, the Company has charged all software development costs to product development expense in the accompanying consolidated statements of operations. | ||||||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Accrued Liabilities | |||||||||||
Accrued liabilities consist of the following (in thousands): | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Accrued payroll and related costs | $ | 1,463 | $ | 3,885 | ||||||||
Warranty reserve | 143 | 515 | ||||||||||
Restructuring charges | 701 | 49 | ||||||||||
Customer deposits | — | 643 | ||||||||||
Accrued taxes | 33 | 75 | ||||||||||
Litigation charges | — | 1,875 | ||||||||||
Other accrued liabilities | 504 | 353 | ||||||||||
$ | 2,844 | $ | 7,395 | |||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation | |||||||||||
The functional currency of the Company's subsidiaries is the local currency. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rate as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Gains and losses resulting from the translation of the financial statements are included in accumulated other comprehensive income (loss). | ||||||||||||
Remeasurement adjustments for non-functional currency monetary assets and liabilities, including short-term intercompany balances, are included in other income (expense) in the accompanying consolidated statements of operations. Currently, the Company does not employ a foreign currency hedge program utilizing foreign currency exchange contracts as the foreign currency transactions and risks to date have not been significant. | ||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk and Suppliers | |||||||||||
The Company's financial instruments consist of cash equivalents, short-term investments, accounts receivable, accounts payable, and lease financing obligations. The carrying value of the Company's financial instruments approximates fair value. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of investments, which are classified as either cash equivalents or short-term investments, and trade receivables. With respect to its investments, the Company has an investment policy that limits the amount of credit exposure to any one financial institution and restricts placement of the Company's investments to financial institutions independently evaluated as highly creditworthy. With respect to its trade receivables, the Company performs ongoing credit evaluations of each of its customers' financial condition. For a customer whose credit worthiness does not meet the Company's minimum criteria, the Company may require partial or full payment prior to shipment. Alternatively, prior to shipment, customers may be required to provide the Company with an irrevocable letter of credit or arrange for some other form of coverage, such as a bank guarantee, to mitigate the risk of uncollectibility. Additionally, the Company establishes an allowance for doubtful accounts and sales return allowances based upon factors surrounding the credit risk of specific customers, historical trends, and other available information. With the exception of amounts owed to the Company on sales made to certain significant customers, concentrations of credit risk with respect to trade receivables are generally limited due to the Company's large number of customers and their dispersion across many different industries and geographies. As of December 31, 2014 and 2013, the percentage of the Company's total accounts receivable balance that were due from the following significant customers is as follows (refer to Note 9 - Significant Customers for a discussion of revenues generated from the Company's significant customers): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Enel Distribuzione Spa | 3.60% | 14.30% | ||||||||||
EBV Electronik GmbH / Avnet Europe Comm VA | 24.00% | 8.60% | ||||||||||
Total | 27.60% | 22.90% | ||||||||||
For most of the Company's products requiring assembly, it relies on a limited number of contract electronic manufacturers, principally Bel-Fuse (formerly TYCO). The Company also maintains manufacturing agreements with a limited number of semiconductor manufacturers for the production of key products. | ||||||||||||
The Neuron Chip is an important component that the Company and its customers use in control network devices. In addition to those sold by the Company, the Neuron Chip is currently manufactured and distributed only by Cypress Semiconductor. Another semiconductor supplier, STMicroelectronics, manufactures the Company's power line smart transceiver products, for which the Company has no alternative source. In addition, the Company currently purchases several key products and components from sole or limited source suppliers with which it does not maintain signed agreements that would obligate them to supply to the Company on negotiated terms. | ||||||||||||
If any of the Company's key suppliers were to stop manufacturing the Company's products or cease supplying the Company with its key components, it could be expensive and time consuming to find a replacement. There is no guarantee that the Company would be able to find acceptable alternatives or additional sources. | ||||||||||||
The failure of any key manufacturer to produce a sufficient number of products on time, at agreed quality levels, and fully compliant with the Company's product, assembly and test specifications could adversely affect the Company's revenues and gross profit, and could result in claims against the Company by its customers, which could harm the Company's results of operations and financial position. | ||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Computation of Basic and Diluted Net Loss Per Share | |||||||||||
Basic net loss per share is calculated by dividing net loss attributable to Echelon Corporation Stockholders by the weighted average shares of common stock outstanding during the period. Diluted net loss per share attributable to Echelon Corporation Stockholders is calculated by adjusting the weighted average number of outstanding shares assuming conversion of all potentially dilutive stock options and warrants under the treasury stock method. | ||||||||||||
The following is a reconciliation of the numerators and denominators of the basic and diluted net loss per share computations for the years ended December 31, 2014, 2013 and 2012 (in thousands, except per share amounts): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net loss (Numerator): | ||||||||||||
Net loss from continuing operations attributable to Echelon Corporation Stockholders | $ | (15,611 | ) | $ | (14,739 | ) | $ | (12,818 | ) | |||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders | (8,715 | ) | (2,871 | ) | — | |||||||
Net loss attributable to Echelon Corporation Stockholders | $ | (24,326 | ) | $ | (17,610 | ) | $ | (12,818 | ) | |||
Shares (Denominator): | ||||||||||||
Weighted average common shares outstanding | 43,502 | 43,092 | 42,650 | |||||||||
Shares used in basic computation | 43,502 | 43,092 | 42,650 | |||||||||
Common shares issuable upon exercise of stock options (treasury stock method) | — | — | — | |||||||||
Shares used in diluted computation | 43,502 | 43,092 | 42,650 | |||||||||
Net loss per share: | ||||||||||||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ | (0.36 | ) | $ | (0.34 | ) | $ | (0.30 | ) | |||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | $ | (0.20 | ) | $ | (0.07 | ) | $ | 0 | ||||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ | (0.56 | ) | $ | (0.41 | ) | $ | (0.30 | ) | |||
For the years ended December 31, 2014, 2013 and 2012, the diluted net loss per share calculation is equivalent to the basic net loss per share calculation as there were no potentially dilutive stock options or RSUs due to the Company’s net loss position. The number of stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and contingently issuable shares excluded from this calculation for the years ended December 31, 2014, 2013 and 2012 was 4,061,346, 5,472,946 and 5,868,929, respectively. | ||||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | |||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||
The Company takes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon effective settlement. The Company re-evaluates its income tax positions on a quarterly basis to consider factors such as changes in facts or circumstances, changes in or interpretations of tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in recognition of a tax benefit or an additional charge to the tax provision. Interest and penalties on unrecognized tax benefits are classified as income tax expense. | ||||||||||||
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) | |||||||||||
Comprehensive income (loss) for the Company consists of net loss plus the effect of unrealized holding gains or losses on investments classified as available-for-sale and foreign currency translation adjustments. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following (in thousands): | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Purchased materials | $ | 402 | $ | 1,343 | ||||
Finished goods | 2,841 | 5,102 | ||||||
$ | 3,243 | $ | 6,445 | |||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities, Current [Abstract] | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consist of the following (in thousands): | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued payroll and related costs | $ | 1,463 | $ | 3,885 | ||||
Warranty reserve | 143 | 515 | ||||||
Restructuring charges | 701 | 49 | ||||||
Customer deposits | — | 643 | ||||||
Accrued taxes | 33 | 75 | ||||||
Litigation charges | — | 1,875 | ||||||
Other accrued liabilities | 504 | 353 | ||||||
$ | 2,844 | $ | 7,395 | |||||
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Significant Accounts receivable balances (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Significant Accounts receivable balances [Abstract] | ||||
Significant Accounts Receivable [Table Text Block] | As of December 31, 2014 and 2013, the percentage of the Company's total accounts receivable balance that were due from the following significant customers is as follows (refer to Note 9 - Significant Customers for a discussion of revenues generated from the Company's significant customers): | |||
December 31, | ||||
2014 | 2013 | |||
Enel Distribuzione Spa | 3.60% | 14.30% | ||
EBV Electronik GmbH / Avnet Europe Comm VA | 24.00% | 8.60% | ||
Total | 27.60% | 22.90% |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies Computation of Basic and Diluted Net loss per share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Computation of Basic and Diluted net loss Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is a reconciliation of the numerators and denominators of the basic and diluted net loss per share computations for the years ended December 31, 2014, 2013 and 2012 (in thousands, except per share amounts): | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net loss (Numerator): | ||||||||||||
Net loss from continuing operations attributable to Echelon Corporation Stockholders | $ | (15,611 | ) | $ | (14,739 | ) | $ | (12,818 | ) | |||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders | (8,715 | ) | (2,871 | ) | — | |||||||
Net loss attributable to Echelon Corporation Stockholders | $ | (24,326 | ) | $ | (17,610 | ) | $ | (12,818 | ) | |||
Shares (Denominator): | ||||||||||||
Weighted average common shares outstanding | 43,502 | 43,092 | 42,650 | |||||||||
Shares used in basic computation | 43,502 | 43,092 | 42,650 | |||||||||
Common shares issuable upon exercise of stock options (treasury stock method) | — | — | — | |||||||||
Shares used in diluted computation | 43,502 | 43,092 | 42,650 | |||||||||
Net loss per share: | ||||||||||||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ | (0.36 | ) | $ | (0.34 | ) | $ | (0.30 | ) | |||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | $ | (0.20 | ) | $ | (0.07 | ) | $ | 0 | ||||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ | (0.56 | ) | $ | (0.41 | ) | $ | (0.30 | ) | |||
For the years ended December 31, 2014, 2013 and 2012, the diluted net loss per share calculation is equivalent to the basic net loss per share calculation as there were no potentially dilutive stock options or RSUs due to the Company’s net loss position. The number of stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and contingently issuable shares excluded from this calculation for the years ended December 31, 2014, 2013 and 2012 was 4,061,346, 5,472,946 and 5,868,929, respectively. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair value of asset measured on a recurring basis | The fair value of the Company’s financial assets measured at fair value on a recurring basis was determined using the following inputs at December 31, 2013 (in thousands): | |||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
Money market funds (1) | $ | 5,254 | $ | 5,254 | $ | — | $ | — | ||||||||||||||||||||||||
U.S. government securities(2) | 42,987 | — | 42,987 | — | ||||||||||||||||||||||||||||
Total | $ | 48,241 | $ | 5,254 | $ | 42,987 | $ | — | ||||||||||||||||||||||||
(1) Included in cash and cash equivalents in the Company’s consolidated balance sheets | ||||||||||||||||||||||||||||||||
(2) | Represents the portfolio of available for sale securities and is included in restricted investments and short-term investments in the Company’s consolidated balance sheets | |||||||||||||||||||||||||||||||
The fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis was determined using the following inputs at December 31, 2014 (in thousands): | ||||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds (1) | $ | 9,023 | $ | 9,023 | $ | — | $ | — | ||||||||||||||||||||||||
U.S. government securities(2) | 30,230 | — | 30,230 | — | ||||||||||||||||||||||||||||
Total | $ | 39,253 | $ | 9,023 | $ | 30,230 | $ | — | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Contingent consideration | $ | 968 | $ | — | $ | — | $ | 968 | ||||||||||||||||||||||||
Total | $ | 968 | $ | — | $ | — | $ | 968 | ||||||||||||||||||||||||
Level 3 Rollforward [Table Text Block] | The table below includes a rollforward of the balance sheet amounts for financial instruments classified by the Company within Level 3 of the valuation hierarchy for the year ended December 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||
Contingent Consideration | ||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2013 | $ | — | ||||||||||||||||||||||||||||||
Recorded in conjunction with acquisition of Lumewave, Inc. | 925 | |||||||||||||||||||||||||||||||
Amortization of interest on contingent consideration | 43 | |||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2014 | $ | 968 | ||||||||||||||||||||||||||||||
Fair value of short term investment unrealized holdings and gains | As of December 31, 2014, the Company’s available-for-sale securities had contractual maturities from eight to twelve months and an average remaining term to maturity of seven months. As of December 31, 2014, the amortized cost basis, aggregate fair value, and gross unrealized holding gains and losses of the Company’s short-term investments by major security type were as follows (in thousands): | The amortized cost basis, aggregate fair value and gross unrealized holding gains and losses for the Company’s available-for-sale short-term investments, by major security type, were as follows as of December 31, 2013 (in thousands): | ||||||||||||||||||||||||||||||
Amortized Cost | Aggregate Fair Value | Unrealized Holding Gains | Unrealized Holding Losses | Amortized Cost | Aggregate Fair Value | Unrealized Holding Gains | Unrealized Holding Losses | |||||||||||||||||||||||||
U.S. government and agency securities | $ | 30,237 | $ | 30,230 | $ | — | $ | 7 | U.S. government securities | $ | 42,979 | $ | 42,987 | $ | 8 | $ | — | |||||||||||||||
Property_and_equipment_Propert
Property and equipment Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | A summary of property and equipment, net as of December 31, 2014 and 2013 is as follows (in thousands): | |||||||
December 31, 2014 | December 31, 2013 | |||||||
Buildings and improvements | $ | 27,629 | $ | 37,356 | ||||
Computer and other equipment | 4,046 | 22,138 | ||||||
Software | 3,283 | 3,627 | ||||||
Furniture and fixtures | 2,205 | 2,625 | ||||||
Leasehold improvements | 894 | 4,010 | ||||||
38,057 | 69,756 | |||||||
Less: Accumulated depreciation and amortization | (27,867 | ) | (51,086 | ) | ||||
Property and equipment, net | $ | 10,190 | $ | 18,670 | ||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Acquisitions [Abstract] | ||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the purchase price allocation based on estimated fair values of assets acquired and liabilities assumed at the acquisition date (amounts in thousands): | |||
Amount | ||||
Cash and cash equivalents | $ | 630 | ||
Accounts receivable | 107 | |||
Inventory | 31 | |||
Other current assets | 259 | |||
Property and equipment | 23 | |||
Identifiable intangible assets | 1,500 | |||
Goodwill | 1,257 | |||
Accounts payable | (352 | ) | ||
Accrued liabilities | (255 | ) | ||
$ | 3,200 | |||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Discontinued Operations [Abstract] | ||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The table below provides a summary of the components of the net loss from discontinued operations for 2014 and 2013 and excludes certain shared overhead costs that were previosuly allocated to the Grid segment as ASC 205-20 prohibits the allocation of general overhead costs to discontinued operations. | |||||||
Year ended December 31, | ||||||||
2014 | 2013 | |||||||
Revenues (1) (2) | $ | 18,392 | $ | 40,303 | ||||
Cost of revenues | 11,774 | 24,988 | ||||||
Operating expenses | 15,614 | 18,994 | ||||||
Loss from discontinued operations before income taxes | (8,996 | ) | (3,679 | ) | ||||
Income taxes | — | — | ||||||
Loss on sale of Grid business | (254 | ) | — | |||||
Net loss from discontinued operations, net of income taxes | (9,250 | ) | (3,679 | ) | ||||
Net loss from discontinued operations attributable to non-controlling interest, net of income taxes | 535 | 808 | ||||||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | $ | (8,715 | ) | $ | (2,871 | ) | ||
(1) Includes related party amounts of $112,000 and $4.4 million for the years ended December 31, 2014 and 2013, respectively. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ||||||||||||
Foreign currency translation adjustment | Unrealized gain (loss) on available-for-sale securities | Accumulated Other Comprehensive Income (Loss) | ||||||||||
(Amount in thousands) | (Amount in thousands) | (Amount in thousands) | ||||||||||
Beginning balance at December 31, 2012 | $ | 501 | $ | 8 | $ | 509 | ||||||
Change during the year | 506 | — | 506 | |||||||||
Ending balance at December 31, 2013 | $ | 1,007 | $ | 8 | $ | 1,015 | ||||||
Change during the year | (1,431 | ) | (15 | ) | (1,446 | ) | ||||||
Ending balance at December 31, 2014 | $ | (424 | ) | $ | (7 | ) | $ | (431 | ) |
Stockholders_Equity_and_Employ1
Stockholders' Equity and Employee Stock Option Plans Stock Award Activity (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Stock Award Activity [Abstract] | |||||||||||
Schedule Of Share Based Compensation Stock Options, RSU and SARS Activity [Table Text Block] | The following table summarizes stock award activity under all plans for the years ended December 31, 2014, 2013, and 2012: | ||||||||||
Options Outstanding | |||||||||||
Shares Available for Grant | Number Outstanding | Weighted-Average Exercise Price Per Share | |||||||||
BALANCE AT DECEMBER 31, 2011 | 13,047,736 | 3,103,472 | $ | 8.71 | |||||||
Options granted | (1,883,388 | ) | 1,883,388 | 3.21 | |||||||
RSUs granted | (700,987 | ) | — | — | |||||||
Options and stock appreciation rights cancelled | 1,047,545 | (1,047,545 | ) | 8.73 | |||||||
RSUs cancelled | 315,817 | — | — | ||||||||
1998 Directors Plan shares expired | (60,000 | ) | — | — | |||||||
Additional shares reserved | 1,700,859 | — | — | ||||||||
BALANCE AT DECEMBER 31, 2012 | 13,467,582 | 3,939,315 | $ | 6.08 | |||||||
Options granted | (1,785,728 | ) | 1,785,728 | 2.34 | |||||||
RSUs granted | (702,665 | ) | — | — | |||||||
Options and stock appreciation rights cancelled | 1,620,194 | (1,620,194 | ) | 6.89 | |||||||
RSUs cancelled | 471,867 | — | — | ||||||||
Unissued shares eliminated from plan | (15,542,434 | ) | — | — | |||||||
1998 Directors Plan shares expired | (75,000 | ) | — | — | |||||||
Additional shares reserved | 7,122,039 | — | — | ||||||||
BALANCE AT DECEMBER 31, 2013 | 4,575,855 | 4,104,849 | $ | 4.13 | |||||||
Options granted | (468,000 | ) | 468,000 | 2.46 | |||||||
RSUs granted | (2,191,535 | ) | — | — | |||||||
Options and stock appreciation rights cancelled | 1,970,662 | (1,970,662 | ) | 4.7 | |||||||
RSUs cancelled | 1,265,195 | — | — | ||||||||
Options exercised | — | (5,395 | ) | 3.17 | |||||||
BALANCE AT DECEMBER 31, 2014 | 5,152,177 | 2,596,792 | $ | 3.4 | |||||||
The total intrinsic value of options and SARs exercised during the year ended December 31, 2014, 2013, and 2012, was approximately $3,000, $0, and $0, respectively. During the years ended December 31, 2013, and 2012, no options or SARs were exercised. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. |
Stockholders_Equity_and_Employ2
Stockholders' Equity and Employee Stock Option Plans RSU and RSA activity (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
RSU and RSA activity [Abstract] | ||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table provides additional information regarding RSU and RSA activity for the years ended December 31, 2014, 2013, and 2012: | |||||||
Number Nonvested and Outstanding | Weighted-Average Grant Date Fair-Value | |||||||
BALANCE AT DECEMBER 31, 2011 | 2,521,593 | $ | 8.4 | |||||
RSUs and RSAs granted | 700,987 | 3.25 | ||||||
RSUs vested and released | (977,149 | ) | 8.48 | |||||
RSUs cancelled | (315,817 | ) | 7.8 | |||||
BALANCE AT DECEMBER 31, 2012 | 1,929,614 | $ | 6.56 | |||||
RSUs granted | 419,056 | 2.34 | ||||||
RSUs vested and released | (522,286 | ) | 6.99 | |||||
RSUs cancelled | (458,287 | ) | 6.19 | |||||
BALANCE AT DECEMBER 31, 2013 | 1,368,097 | $ | 5.22 | |||||
RSUs granted | 1,289,138 | 2.51 | ||||||
RSUs vested and released | (500,528 | ) | 5.78 | |||||
RSUs cancelled | (863,278 | ) | 3.69 | |||||
BALANCE AT DECEMBER 31, 2014 | 1,293,429 | $ | 3.32 | |||||
The fair value of each RSU and RSA granted to employees was estimated on the date of grant by multiplying the number of shares granted times the fair market value of the Company's stock on the grant date. | ||||||||
The total intrinsic value of RSUs and RSAs vested and released during the years ended December 31, 2014, 2013, and 2012 was approximately $1.2 million, $1.2 million, and $3.7 million, respectively. The intrinsic value of vested and released RSUs and RSAs is calculated by multiplying the fair market value of the Company's stock on the vesting date by the number of shares vested. As of December 31, 2014, the number of RSUs and RSAs outstanding and expected to vest was 1,242,853, with a total intrinsic value of $2.1 million. The intrinsic value of the outstanding and expected to vest RSUs and RSAs is calculated based on the market value of the Company's closing stock price of $1.70 as of December 31, 2014, the last market trading day of 2014. |
Stockholders_Equity_and_Employ3
Stockholders' Equity and Employee Stock Option Plans Exercise Price ranges and related information for options and SARS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Exercise Price ranges and related information for options and SARS [Abstract] | ||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table provides additional information for significant ranges of outstanding and exercisable stock options and SARs as of December 31, 2014: | |||||||||||||
Exercise | Number | Weighted | Weighted | |||||||||||
Price Range | Outstanding | Average | Average | Aggregate Intrinsic Value | ||||||||||
Remaining | Exercise | |||||||||||||
Contractual Life | Price per Share | |||||||||||||
(in years) | ||||||||||||||
$2.03-$2.23 | 238,000 | 8.88 | $ | 2.13 | $ | — | ||||||||
2.24 | 440,000 | 9.25 | 2.24 | — | ||||||||||
2.29-2.34 | 18,400 | 9.37 | 2.33 | — | ||||||||||
2.37 | 585,200 | 8.44 | 2.37 | — | ||||||||||
2.42-2.86 | 130,000 | 8.97 | 2.52 | — | ||||||||||
3.17 | 609,992 | 7.29 | 3.17 | — | ||||||||||
3.25-5.53 | 235,200 | 4.62 | 4.28 | — | ||||||||||
7.46 | 250,000 | 2.63 | 7.46 | — | ||||||||||
8.2 | 40,000 | 0.4 | 8.2 | — | ||||||||||
$9.08 | 50,000 | 1.39 | 9.08 | — | ||||||||||
Outstanding | 2,596,792 | 7.22 | $ | 3.4 | $ | — | ||||||||
Vested and expected to vest | 2,474,785 | 7.2 | $ | 3.45 | $ | — | ||||||||
Exercisable | 1,116,197 | 5.57 | $ | 4.5 | $ | — | ||||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock Based Compensation [Abstract] | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The weighted average fair value of options and SARs granted during the years ended December 31, 2014, 2013, and 2012, was $1.47, $1.39, and $1.85, respectively, and was determined using the following weighted average assumptions: | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected dividend yield | —% | —% | —% | ||||||||||||||
Risk-free interest rate | 2.00% | 1.60% | 0.90% | ||||||||||||||
Expected volatility | 66.30% | 64.80% | 63.90% | ||||||||||||||
Expected term (in years) | 5.98 | 6.16 | 6.1 | ||||||||||||||
Share based Compensation by arrangement, details of performance based awards [Table Text Block] | The following table contains pertinent information regarding these outstanding awards as of December 31, 2014 (in thousands except for number of awards granted): | ||||||||||||||||
Grant Date | # of Awards Granted and Outstanding | Fair Value on Grant Date | Cumulative Expense Recognized | Unearned Compensation Expense | Latest Date Performance Condition Could be Met | ||||||||||||
Aug-10 | 80,000 | $ | 596 | $ | — | $ | 596 | Apr-15 | |||||||||
Nov-11 | 50,000 | 277 | — | 277 | Apr-15 | ||||||||||||
Jun-14 | 570,800 | 1,404 | 324 | 1,080 | Dec-14 | ||||||||||||
Total | 700,800 | $ | 2,277 | $ | 324 | $ | 1,953 | ||||||||||
Through June 30, 2012, cumulative compensation expense of $264,000 associated with the 130,000 unvested RSUs and RSAs granted in 2010 and 2011 had been recognized. From the date of grant through June 30, 2012, the Company had believed it was probable that the associated performance requirements would be achieved and therefore recognized expense on these awards. During the third quarter of 2012, the Company believed that the performance condition was no longer probable of achievement, however the Company had also not yet determined that the performance condition was improbable of achievement. Accordingly, expense recognition was discontinued beginning in the third quarter of 2012. As of December 31, 2013, the Company determined that the performance condition was improbable of achievement and therefore the cumulative compensation expense of $264,000 associated with these awards was reversed in the quarter ended December 31, 2013. The Company continues to believe that the performance condition is improbable of achievement and therefore no expense associated with these awards was recorded during the year ended December 31, 2014. | |||||||||||||||||
In addition to the awards issued in 2010 and 2011, there were 953,300 non-vested RSAs with a grant date fair value of $2.3 million that were granted on June 10, 2014, which were also subject to service-based vesting conditions as well as certain performance-based vesting requirements that must be achieved before vesting can occur. These awards vest over a nine month period ending March 14, 2015, provided the performance conditions have been met as of December 31, 2014. Of these RSAs issued in June 2014, 302,000 awards with a total fair value of approximately $743,000 were granted to employees of the Grid business. As of September 30, 2014, in conjunction with the sale of the Grid business, the Company reversed all compensation expense previously recognized associated with these awards as they will not vest. Additionally, as of December 31, 2014, 80,500 awards with a grant date fair value of approximately $198,000 were granted to employees who terminated their employment during 2014. Accordingly, the Company reversed all compensation expense previously recognized associated with these awards as they will not vest. As of December 31, 2014, the Company determined that the performance conditions associated with a portion of the remaining unvested awards with a grant date fair value of $965,000 will not be achieved and therefore any previously recorded expense associated with these awards was reversed and no additional expense was recorded during the year ended December 31, 2014. | |||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | As of December 31, 2014, total compensation cost related to non-vested stock options and other equity based awards not yet recognized was $2.0 million, which is expected to be recognized over the next 1.1 years on a weighted-average basis. | ||||||||||||||||
The following table summarizes stock-based compensation expense for the years ended December 31, 2014, 2013, and 2012 and its allocation within the consolidated statements of operations (in thousands): | |||||||||||||||||
Year ended 31 December, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Cost of revenues | $ | 292 | $ | 198 | $ | 678 | |||||||||||
Product development | (73 | ) | 156 | 2,304 | |||||||||||||
Sales and marketing | 206 | 84 | 1,896 | ||||||||||||||
General and administrative | 1,114 | 967 | 2,098 | ||||||||||||||
Discontinued operations | (342 | ) | 1,133 | — | |||||||||||||
Total stock based compensation expense related to stock options and share awards | 1,197 | 2,538 | 6,976 | ||||||||||||||
Tax benefit | — | — | — | ||||||||||||||
Stock-based compensation expense related to stock options and share awards, net of tax | $ | 1,197 | $ | 2,538 | $ | 6,976 | |||||||||||
As of December 31, 2014, approximately $8,000 and $2,000 of stock-based compensation expense was capitalized as part of the cost of inventory and deferred cost of goods sold, respectively. As of December 31, 2013, approximately $42,000 and $8,000 of stock-based compensation expense was capitalized as part of the cost of inventory and deferred cost of goods sold, respectively. |
Significant_Customers_Tables
Significant Customers (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Risks and Uncertainties [Abstract] | ||||||
Revenues attributable to sales to major customers | For the years ended December 31, 2014, 2013 and 2012 the percentage of the Company’s revenues attributable to sales made to these customers was as follows: | |||||
Year ended December 31, | ||||||
2014 | 2013 | 2012 | ||||
Avnet | 26.20% | 26.60% | 9.50% | |||
Enel | 7.70% | 16.10% | 4.50% | |||
Total | 33.90% | 42.70% | 14.00% |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill [Abstract] | |||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The changes in the carrying amount of identifiable intangible assets, net for the year ended December 31, 2014 is as follows (in thousands): | ||||||||||
Total | |||||||||||
Balance as of December 31, 2013 | $ | — | |||||||||
Intangible assets acquired | 1,500 | ||||||||||
Amortization | (87 | ) | |||||||||
Balance as of December 31, 2014 | $ | 1,413 | |||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | The following table presents the details of the Company's finite-lived intangible assets as of December 31, 2014 (in thousands, except for weighted-average remaining useful life): | ||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted-Average Remaining Useful Life (in years) | ||||||||
Developed technology | $ | 800 | $ | 46 | $ | 754 | 6.12 | ||||
Customer relationships | 500 | 29 | 471 | 6.12 | |||||||
Trade names | 200 | 12 | 188 | 6.12 | |||||||
Total | $ | 1,500 | $ | 87 | $ | 1,413 | 6.12 | ||||
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill, net, for the years ended December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||
Total | |||||||||||
Balance as of December 31, 2012 | $ | 8,276 | |||||||||
Unrealized foreign currency translation gain | 114 | ||||||||||
Balance as of December 31, 2013 | 8,390 | ||||||||||
Unrealized foreign currency translation loss | (323 | ) | |||||||||
Goodwill impairment - Grid division | (3,388 | ) | |||||||||
Goodwill associated with Lumewave acquisition | 1,257 | ||||||||||
Balance as of December 31, 2014 | $ | 5,936 | |||||||||
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The following table presents the amortization of finite-lived intangible assets included in the Consolidated Statements of Operations for the year ended December 31, 2014 (in thousands): | ||||||||||
Total | |||||||||||
Cost of revenues | $ | 46 | |||||||||
Operating expenses | 41 | ||||||||||
Total | $ | 87 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies Future minimum lease payments for financing obligations (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Leases [Abstract] | ||||
Capital leases of Lessee [Table Text Block] | As of December 31, 2014, the future minimum lease payments for these lease financing obligations were as follows (in thousands): | |||
2015 | $ | 3,411 | ||
2016 | 3,486 | |||
2017 | 3,604 | |||
2018 | 3,735 | |||
2019 | 4,196 | |||
2020 | 651 | |||
Total payments | $ | 19,083 | ||
Amount representing interest | (2,962 | ) | ||
Present value of future minimum lease payments | $ | 16,121 | ||
Lease financing obligations classified as current | $ | 2,459 | ||
Lease financing obligations classified as long-term | $ | 13,662 | ||
Commitments_and_Contingencies_1
Commitments and Contingencies Future minimum lease payment for Operating Leases (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Leases [Abstract] | ||||||||||||
Operating Leases of Lessee Disclosure [Table Text Block] | As of December 31, 2014, future minimum lease payments under all operating leases, including $4.1 million related to the land lease associated with the Company's corporate headquarters facilities (see Note 3), were as follows (in thousands): | |||||||||||
2015 | $ | 1,148 | ||||||||||
2016 | 911 | |||||||||||
2017 | 899 | |||||||||||
2018 | 817 | |||||||||||
2019 | 776 | |||||||||||
2020 | 194 | |||||||||||
Total payments | $ | 4,745 | ||||||||||
Although certain of the operating lease agreements provide for escalating rent payments over the term of the lease, rent expense under these agreements is recognized on a straight-line basis. As of December 31, 2014, the Company has accrued approximately $180,000 of deferred rent related to these agreements, of which approximately $32,000 is reflected in current liabilities while the remainder is reflected in other long-term liabilities in the accompanying consolidated balance sheet. As of December 31, 2013, the Company has accrued approximately $215,000 of deferred rent related to these agreements, of which approximately $35,000 is reflected in current liabilities while the remainder is reflected in other long-term liabilities in the accompanying consolidated balance sheet. | ||||||||||||
As discussed in Note 5 - Discontinued Operations, in conjunction with the sale of its Grid division, the Company entered into a sublease with S&T for a portion of its corporate headquarters facility. As of December 31, 2014, the minimum sublease rental payments S&T is required to make during the remaining 36 month term of the sublease total approximately $1.9 million. | ||||||||||||
The components of net rent expense for all operating leases for the years ended December 31, 2014, 2013, and 2012, were as follows (in thousands): | ||||||||||||
Year ended 31 December | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Rent expense | $ | 1,483 | $ | 1,527 | $ | 1,682 | ||||||
Sublease rentals | (202 | ) | — | — | ||||||||
Rent expense included in discontinued operations | (160 | ) | (145 | ) | — | |||||||
Rent expense, net | $ | 1,121 | $ | 1,382 | $ | 1,682 | ||||||
Income_Taxes_Provision_for_inc
Income Taxes Provision for income taxes, Region (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The provision for income taxes attributable to continuing operations is based upon loss from continuing operations before provision for income taxes as follows (in thousands): | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (15,592 | ) | $ | (14,358 | ) | $ | (13,614 | ) | |||
Foreign | 192 | (70 | ) | 652 | ||||||||
$ | (15,400 | ) | $ | (14,428 | ) | $ | (12,962 | ) |
Income_Taxes_Components_of_inc
Income Taxes Components of income tax expense/ (benefit) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Components of Income Tax Expense/ (Benefit) [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes consists of the following (in thousands): | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal: | ||||||||||||
Current | $ | — | $ | — | $ | — | ||||||
Deferred | — | — | — | |||||||||
Total federal provision | — | — | — | |||||||||
State: | ||||||||||||
Current | 16 | 17 | 5 | |||||||||
Deferred | — | — | — | |||||||||
Total state provision | 16 | 17 | 5 | |||||||||
Foreign: | ||||||||||||
Current | 195 | 294 | 214 | |||||||||
Deferred | — | — | — | |||||||||
Total foreign provision | 195 | 294 | 214 | |||||||||
Total income tax expense | $ | 211 | $ | 311 | $ | 219 | ||||||
Income_Taxes_Effective_rate_re
Income Taxes Effective rate reconcilation (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Effective Rate Reconciliation [Abstract] | ||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The provision for income taxes differs from the amount estimated by applying the statutory Federal income tax rate to loss before taxes as follows (in thousands): | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal tax at statutory rate of 35% | $ | (5,390 | ) | $ | (5,050 | ) | $ | (4,537 | ) | |||
State taxes, net of federal benefit | (577 | ) | 17 | 5 | ||||||||
U.S.-Foreign rate differential | 100 | 342 | 87 | |||||||||
Change in Valuation Allowance | 4,115 | 5,862 | 4,530 | |||||||||
Research and Development credits | 357 | (1,241 | ) | — | ||||||||
Permanent items | 1,560 | 406 | — | |||||||||
Others | 46 | (25 | ) | 134 | ||||||||
Total income tax expense | $ | 211 | $ | 311 | $ | 219 | ||||||
Income_Taxes_Components_of_Def
Income Taxes Components of Deferred tax asset/ liability (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Components of deferred tax asset/ liability [Abstract] | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of December 31, 2014 and 2013, a valuation allowance has been recorded against 100% of the gross deferred tax assets as a result of uncertainties regarding the realization of the asset balance. As of December 31, 2014 and 2013, the Company had no significant deferred tax liabilities. The components of the net deferred income tax asset are as follows (in thousands): | |||||||
Year ended December 31, | ||||||||
2014 | 2013 | |||||||
Net operating loss carry forwards | $ | 72,058 | $ | 60,961 | ||||
Tax credit carry forwards | 26,571 | 26,869 | ||||||
Fixed and intangible assets | 6,424 | 7,246 | ||||||
Capitalized research and development costs | 58 | 58 | ||||||
Reserves and other cumulative temporary differences | 15,535 | 19,380 | ||||||
Gross deferred income tax assets | 120,646 | 114,514 | ||||||
Valuation allowance | (120,646 | ) | (114,514 | ) | ||||
Net deferred income tax assets | $ | — | $ | — | ||||
Income_Taxes_Companys_uncertai
Income Taxes Company's uncertain tax positions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Company's uncertain tax positions [Abstract] | ||||||||
Summary of Income Tax Contingencies [Table Text Block] | The following is a rollforward of the Company's uncertain tax positions for the years ended December 31, 2014 and 2013 (in thousands): | |||||||
Year ended December 31, | ||||||||
2014 | 2013 | |||||||
Balance as of the beginning of the year | $ | 2,138 | $ | 3,382 | ||||
Tax positions related to current year: | ||||||||
Additions | 76 | 31 | ||||||
Reductions | (48 | ) | — | |||||
Tax positions related to prior years: | ||||||||
Additions | — | — | ||||||
Reductions | (232 | ) | (571 | ) | ||||
Settlements | — | — | ||||||
Lapses in statute of limitations | (575 | ) | (704 | ) | ||||
Balance as of the end of the year | $ | 1,359 | $ | 2,138 | ||||
Included in the balance of total unrecognized tax benefits at December 31, 2014 are potential benefits of $469,000, which if recognized, would affect the effective rate on income from continuing operations. | ||||||||
On December 31, 2014, the Company had accrued interest and penalties related to the uncertain tax benefits of approximately $99,000. During 2014, the Company decreased the prior year balance by $35,000 due to foreign currency fluctuations. |
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||
May 2012 Restructuring Plan [Member] | ||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | The following table sets forth a summary of restructuring activities related to the Company’s May 2012 restructuring program in 2014 (in thousands): | The following table sets forth a summary of restructuring activities related to the Company’s May 2012 restructuring program in 2013 (in thousands): | ||||||||||||||||||||||||||||||
December 31, 2013 | Costs Incurred | Cash Payments | 31-Dec-14 | December 31, 2012 | Costs Incurred | Cash Payments | 31-Dec-13 | |||||||||||||||||||||||||
Termination benefits | $ | 49 | $ | — | $ | 49 | $ | — | Termination benefits | $ | 149 | $ | — | $ | 100 | $ | 49 | |||||||||||||||
February 2013 Restructuring Plan [Member] | ||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | The following table sets forth a summary of restructuring activities related to the Company's February 2013 restructuring program (in thousands): | |||||||||||||||||||||||||||||||
December 31, 2012 | Costs Incurred | Cash Payments | 31-Dec-13 | |||||||||||||||||||||||||||||
Termination benefits | — | 2,522 | 2,522 | — | ||||||||||||||||||||||||||||
2014 Restructuring Plan [Member] | ||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | The following table sets forth a summary of restructuring activities related to the Company’s 2014 restructuring program (in thousands): | |||||||||||||||||||||||||||||||
31-Dec-13 | Costs Incurred | Cash Payments | 31-Dec-14 | |||||||||||||||||||||||||||||
Termination benefits | — | 1,841 | 1,140 | 701 | ||||||||||||||||||||||||||||
Segment_Disclosure_Tables
Segment Disclosure (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Revenue information by geography | Summary revenue information by geography for the years ended December 31, 2014, 2013 and 2012 is as follows (in thousands): | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Americas | ||||||||||||
United States | $ | 10,680 | $ | 11,787 | $ | 32,981 | ||||||
Other Americas | 2,074 | 1,380 | 2,485 | |||||||||
Total Americas | 12,754 | 13,167 | 35,466 | |||||||||
EMEA | ||||||||||||
Germany | 10,733 | 12,789 | 13,097 | |||||||||
Finland | 77 | 95 | 38,958 | |||||||||
Denmark | 66 | 55 | 10,939 | |||||||||
Other EMEA | 3,618 | 6,955 | 21,195 | |||||||||
Total EMEA | 14,494 | 19,894 | 84,189 | |||||||||
APJ | ||||||||||||
China | $ | 3,225 | $ | 5,286 | $ | 6,848 | ||||||
Other APJ | $ | 8,257 | $ | 7,510 | $ | 7,514 | ||||||
Total APJ | $ | 11,482 | $ | 12,796 | $ | 14,362 | ||||||
Total | $ | 38,730 | $ | 45,857 | $ | 134,017 | ||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The following tables set forth certain consolidated statement of operations data for each of the quarters in 2014 and 2013. This information has been derived from the Company's quarterly unaudited consolidated financial statements. The quarterly unaudited consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements included in this report and include all adjustments, consisting only of normal recurring adjustments, that we consider necessary for a fair presentation of such information when read in conjunction with the annual audited consolidated financial statements and notes appearing in this report. The operating results for any quarter do not necessarily indicate the results for any subsequent period or for the entire fiscal year. | ||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||
Dec-14 | Sep-14 | June | March | Dec-13 | Sep-13 | June | March | ||||||||||||||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||||||||||||||||||
Consolidated Statement of Operations Data: | |||||||||||||||||||||||||||||||||
Revenues | 9,647 | 9,178 | 8,981 | 10,924 | 12,518 | 10,177 | 11,398 | 11,764 | |||||||||||||||||||||||||
Cost of revenues | 4,316 | 4,180 | 3,784 | 4,538 | 4,928 | 3,795 | 4,639 | 4,653 | |||||||||||||||||||||||||
Gross profit | 5,331 | 4,998 | 5,197 | 6,386 | 7,590 | 6,382 | 6,759 | 7,111 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Product development | 2,286 | 2,305 | 2,170 | 2,749 | 2,830 | 2,711 | 2,258 | 3,123 | |||||||||||||||||||||||||
Sales and marketing | 2,498 | 2,160 | 2,265 | 2,175 | 2,130 | 2,232 | 2,237 | 2,462 | |||||||||||||||||||||||||
General and administrative | 2,847 | 3,538 | 3,579 | 3,770 | 3,599 | 3,925 | 3,234 | 3,886 | |||||||||||||||||||||||||
Loss on write down of property, equipment and other | — | 4,409 | — | — | — | — | — | — | |||||||||||||||||||||||||
Litigation charges | — | — | — | — | — | — | — | 3,452 | |||||||||||||||||||||||||
Restructuring charges | 164 | 227 | — | — | — | — | — | 2,254 | |||||||||||||||||||||||||
Total operating expenses | 7,795 | 12,639 | 8,014 | 8,694 | 8,559 | 8,868 | 7,729 | 15,177 | |||||||||||||||||||||||||
Loss from continuing operations | (2,464 | ) | (7,641 | ) | (2,817 | ) | (2,308 | ) | (969 | ) | (2,486 | ) | (970 | ) | (8,066 | ) | |||||||||||||||||
Interest and other income (expense), net | 269 | 719 | (69 | ) | 11 | (216 | ) | (606 | ) | (164 | ) | 284 | |||||||||||||||||||||
Interest expense on lease financing obligations | (261 | ) | (271 | ) | (280 | ) | (288 | ) | (297 | ) | (305 | ) | (312 | ) | (321 | ) | |||||||||||||||||
Loss from continuing operations before provision for income taxes | (2,456 | ) | (7,193 | ) | (3,166 | ) | (2,585 | ) | (1,482 | ) | (3,397 | ) | (1,446 | ) | (8,103 | ) | |||||||||||||||||
Income tax expense (benefit) | 97 | 33 | 106 | (25 | ) | 55 | 113 | 106 | 37 | ||||||||||||||||||||||||
Net loss from continuing operations attributable to Echelon Corporation Stockholders | (2,553 | ) | (7,226 | ) | (3,272 | ) | (2,560 | ) | (1,537 | ) | (3,510 | ) | (1,552 | ) | (8,140 | ) | |||||||||||||||||
Net loss from discontinued operations, net of income taxes | — | (2,141 | ) | (5,579 | ) | (1,530 | ) | (2,704 | ) | (269 | ) | 549 | (1,255 | ) | |||||||||||||||||||
Net loss from discontinued operations attributable to non-controlling interest, net of income taxes | — | 179 | 239 | 117 | 218 | 266 | 176 | 148 | |||||||||||||||||||||||||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | — | (1,962 | ) | (5,340 | ) | (1,413 | ) | (2,486 | ) | (3 | ) | 725 | (1,107 | ) | |||||||||||||||||||
Net loss attributable to Echelon Corporation stockholders | $ | (2,553 | ) | $ | (9,188 | ) | $ | (8,612 | ) | $ | (3,973 | ) | $ | (4,023 | ) | $ | (3,513 | ) | $ | (827 | ) | $ | (9,247 | ) | |||||||||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ | (0.06 | ) | $ | (0.17 | ) | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.19 | ) | |||||||||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | $ | — | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.03 | ) | $ | (0.06 | ) | $ | — | $ | 0.02 | $ | (0.03 | ) | ||||||||||||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ | (0.06 | ) | $ | (0.21 | ) | $ | (0.20 | ) | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.08 | ) | $ | (0.02 | ) | $ | (0.22 | ) | |||||||||
Shares used in net loss per share calculation: | |||||||||||||||||||||||||||||||||
Basic | 43,904 | 43,507 | 43,325 | 43,264 | 43,252 | 43,184 | 43,000 | 42,929 | |||||||||||||||||||||||||
Diluted | 43,904 | 43,507 | 43,325 | 43,264 | 43,252 | 43,184 | 43,000 | 42,929 | |||||||||||||||||||||||||
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Percentage of net revenue | 33.90% | 42.70% | 14.00% |
Number of Customers | 2 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $402 | $1,343 |
Inventory, Finished Goods, Net of Reserves | 2,841 | 5,102 |
Inventory, Net | $3,243 | $6,445 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accrued Liabilities, Current [Abstract] | ||
Accrued Salaries | $1,463,000 | $3,885,000 |
Warranty reserve | 143,000 | 515,000 |
Restructuring Reserve | 701,000 | 49,000 |
Customer Deposits | 0 | 643,000 |
Accrued Taxes | 33,000 | 75,000 |
Litigation charges | 0 | 1,875,000 |
Other Accrued Liabilities | 504,000 | 353,000 |
Accrued Liabilities, Current | $2,844,000 | $7,395,000 |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies Concentration of Credit Risk (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Percentage of accounts receivable total | 27.60% | 22.90% |
Enel [Member] [Member] | ||
Percentage of accounts receivable | 3.60% | 14.30% |
Ebv Avnet [Member] | ||
Percentage of accounts receivable | 24.00% | 8.60% |
Recovered_Sheet1
Summary of Significant Accounting Policies Computation of Basic and Diluted net loss per share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Computation of Basic and Diluted net loss Per Share [Abstract] | |||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | ($2,553) | ($7,226) | ($3,272) | ($2,560) | ($1,537) | ($3,510) | ($1,552) | ($8,140) | ($15,611) | ($14,739) | ($12,818) |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | -1,962 | -5,340 | -1,413 | -2,486 | -3 | 725 | -1,107 | -8,715 | -2,871 | 0 |
Net Income (Loss) Attributable to Parent | ($2,553) | ($9,188) | ($8,612) | ($3,973) | ($4,023) | ($3,513) | ($827) | ($9,247) | ($24,326) | ($17,610) | ($12,818) |
Weighted Average Number of Shares Outstanding, Basic | 43,904,000 | 43,507,000 | 43,325,000 | 43,264,000 | 43,252,000 | 43,184,000 | 43,000,000 | 42,929,000 | 43,502,000 | 43,092,000 | 42,650,000 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 43,904,000 | 43,507,000 | 43,325,000 | 43,264,000 | 43,252,000 | 43,184,000 | 43,000,000 | 42,929,000 | 43,502,000 | 43,092,000 | 42,650,000 |
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | ($0.06) | ($0.17) | ($0.08) | ($0.06) | ($0.04) | ($0.08) | ($0.04) | ($0.19) | ($0.36) | ($0.34) | ($0.30) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic and Diluted Share | $0 | ($0.05) | ($0.12) | ($0.03) | ($0.06) | $0 | $0.02 | ($0.03) | ($0.20) | ($0.07) | $0 |
Stock Awards Excluded from Computation of Earnings Per Share Amount | 4,061,346 | 5,472,946 | 5,868,929 | ||||||||
Earnings Per Share, Basic and Diluted | ($0.06) | ($0.21) | ($0.20) | ($0.09) | ($0.09) | ($0.08) | ($0.02) | ($0.22) | ($0.56) | ($0.41) | ($0.30) |
Recovered_Sheet2
Summary of Significant Accounting Policies Impairment of long lived assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Impairment of long lived assets [Abstract] | |||||||||||
Impairment of Long-Lived Assets Held-for-use | $0 | $4,409 | $0 | $0 | $0 | $0 | $0 | $0 | $4,409 | $0 | $0 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Level 3 financial liabilities ending balance | $968,000 | $0 | ||||
Fair value of asset measured on a recurring basis | ||||||
Fixed income available-for-sale securities | 30,230,000 | 42,987,000 | ||||
Business Combination, Contingent Consideration, Liability | 968,000 | 925,000 | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 43,000 | 0 | 0 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||||
Fair value of asset measured on a recurring basis | ||||||
Money market funds | 9,023,000 | [1] | 5,254,000 | [1] | ||
Fixed income available-for-sale securities | 0 | [2] | 0 | [2] | ||
Business Combination, Contingent Consideration, Liability | 0 | |||||
Liabilities, Fair Value Disclosure, Recurring | 0 | |||||
Assets, Fair Value Disclosure, Recurring | 9,023,000 | 5,254,000 | ||||
Significant Other Observable Inputs (Level 2) [Member] | ||||||
Fair value of asset measured on a recurring basis | ||||||
Money market funds | 0 | [1] | 0 | [1] | ||
Fixed income available-for-sale securities | 30,230,000 | [2] | 42,987,000 | [2] | ||
Business Combination, Contingent Consideration, Liability | 0 | |||||
Liabilities, Fair Value Disclosure, Recurring | 0 | |||||
Assets, Fair Value Disclosure, Recurring | 30,230,000 | 42,987,000 | ||||
Significant Unobservable Inputs (Level 3) [Member] | ||||||
Fair value of asset measured on a recurring basis | ||||||
Money market funds | 0 | [1] | 0 | [1] | ||
Fixed income available-for-sale securities | 0 | [2] | 0 | [2] | ||
Business Combination, Contingent Consideration, Liability | 968,000 | |||||
Liabilities, Fair Value Disclosure, Recurring | 968,000 | |||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||||
Fair Value, Measurements, Recurring [Member] | ||||||
Fair value of asset measured on a recurring basis | ||||||
Money market funds | 9,023,000 | [1] | 5,254,000 | [1] | ||
Fixed income available-for-sale securities | 30,230,000 | [2] | 42,987,000 | [2] | ||
Liabilities, Fair Value Disclosure, Recurring | 968,000 | |||||
Assets, Fair Value Disclosure, Recurring | $39,253,000 | $48,241,000 | ||||
[1] | Included in cash and cash equivalents in the Companybs consolidated balance sheets | |||||
[2] | Represents the portfolio of available for sale securities and is included in restricted investments and short-term investments in the Companybs consolidated balance sheets |
Financial_InstrumentsAvailable
Financial Instruments-Available for Sale Securities (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Fair value of short term investment unrealized holdings and gains | |||
Amortized Cost | $30,237 | $42,979 | |
Aggregate fair value | 30,230 | 42,987 | |
Unrealized Holdings gains | 0 | 8 | |
Unrealized Holdings Losses | $7 | $0 |
Financial_Instruments_Details_
Financial Instruments (Details Textual) | Dec. 31, 2014 |
Financial Instruments (Textual) [Abstract] | |
Short-term investments contractual maturity period minimum | 8 |
Short-term investments contractual maturity period maximum | 12 |
Average short-term investments maturity period | 7 |
Property_and_equipment_Propert1
Property and equipment Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property and Equipment [Abstract] | ||
Buildings and improvements | $27,629 | $37,356 |
Computer and other equipment | 4,046 | 22,138 |
Software | 3,283 | 3,627 |
Furniture and fixtures | 2,205 | 2,625 |
Leasehold improvements | 894 | 4,010 |
Property, Plant and Equipment, Gross | 38,057 | 69,756 |
Less: Accumulated depreciation and amortization | -27,867 | -51,086 |
Property and equipment, net | $10,190 | $18,670 |
Property_and_equipment_Narrati
Property and equipment Narrative (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2008 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2000 | Oct. 31, 1999 | |
Property and Equipment [Abstract] | |||||||||||||||
Capital Leases, Future Minimum Payments Due | $48,900,000 | ||||||||||||||
Number of renewals permitted under building lease | 2 | ||||||||||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | ||||||||||||||
Capital Lease Obligations Recorded | 27,600,000 | 12,000,000 | 15,200,000 | ||||||||||||
Increase in lease financing obligations | 12,500,000 | ||||||||||||||
Impairment of Long-Lived Assets Held-for-use | 0 | 4,409,000 | 0 | 0 | 0 | 0 | 0 | 0 | 4,409,000 | 0 | 0 | ||||
Capital Leases, Income Statement, Amortization Expense | 1,900,000 | 2,015,000 | 2,015,000 | ||||||||||||
Net Book value of Buildings leased | 7,700,000 | 12,600,000 | 7,700,000 | 12,600,000 | |||||||||||
Lease expense for land under operating lease | 741,000 | 741,000 | 741,000 | ||||||||||||
Repayment of Other Debt, Building Leases | 2,200,000 | 2,000,000 | 1,900,000 | ||||||||||||
Interest Expense, Other | -261,000 | -271,000 | -280,000 | -288,000 | -297,000 | -305,000 | -312,000 | -321,000 | -1,100,000 | -1,235,000 | -1,360,000 | ||||
Impairment of long-lived assets held-for-use included in discontinued operations | $687,000 |
Property_and_equipment_Useful_
Property and equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | Computer And related software [Member] | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Minimum [Member] | Other Equipment [Member] | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Maximum [Member] | Computer And related software [Member] | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum [Member] | Other Equipment [Member] | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum [Member] | Telecommunication Equipment [Member] | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | ||||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 15, 2014 | |
Business Acquisition [Line Items] | |||||
Business Combination, Contingent Consideration, Liability | $925,000 | $968,000 | |||
Goodwill | 5,936,000 | 8,390,000 | 8,276,000 | ||
Lumewave, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 630,000 | ||||
Business Acquisition, Effective Date of Acquisition | 15-Aug-14 | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||
Business Acquisition, Name of Acquired Entity | Lumewave, Inc. | ||||
Payments to Acquire Businesses, Gross | 1,800,000 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 715,000 | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 1,300,000 | ||||
Business Combination, Contingent Consideration, Liability | 925,000 | 968,000 | |||
Business Acquisition, Working Capital Adjustment to Consideration Transferrred | 225,000 | ||||
Business Combination, Acquired Receivables, Fair Value | 107,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 31,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 259,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 23,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,500,000 | ||||
Goodwill | 1,257,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | -352,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | -255,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 3,200,000 | ||||
Developed Technology Rights [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 800,000 | ||||
Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite lived intangible asset, useful life range, Low value | 6 years 6 months | ||||
Fair value inputs, discount range, low end of range | 0.21 | ||||
Fair value inputs, discount range, high end of range | 0.22 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 500,000 | ||||
Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $200,000 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, including discontinued operation, royalty expense | $1,000 | $52,000 | ||||||||||
Disposal Group, Including Discontinued Operation, Description and Timing of Disposal | 9/30/14 | |||||||||||
Proceeds from Divestiture of Businesses | 4,900,000 | 2,144,000 | 0 | 0 | ||||||||
Contingent consideration discontinued operations | 1,000,000 | |||||||||||
Fair value of contingent consideration receivable | 0 | |||||||||||
Restructuring Costs in Discontinued Operations | 1,400,000 | |||||||||||
Grid Division related restructuring payments | 1,100,000 | |||||||||||
Disposal Group, Including Discontinued Operation, Revenue | 18,392,000 | 40,303,000 | 85,241,000 | |||||||||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 11,774,000 | 24,988,000 | ||||||||||
Disposal Group, Including Discontinued Operation, Operating Expense | 15,614,000 | 18,994,000 | ||||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | -8,996,000 | -3,679,000 | ||||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 0 | 0 | ||||||||||
Gain (Loss) on Disposition of Business | -254,000 | 0 | 0 | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | -2,141,000 | -5,579,000 | -1,530,000 | -2,704,000 | -269,000 | 549,000 | -1,255,000 | -9,250,000 | -3,679,000 | 0 | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | -179,000 | -239,000 | -117,000 | -218,000 | -266,000 | -176,000 | -148,000 | -535,000 | -808,000 | 0 | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | -1,962,000 | -5,340,000 | -1,413,000 | -2,486,000 | -3,000 | 725,000 | -1,107,000 | -8,715,000 | -2,871,000 | 0 | |
Revenues from related parties, discontinued operations | 112,000 | 4,400,000 | ||||||||||
Scenario, Forecast [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenue targets to earn contingent consideration | $50,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Balance at beginning of year | $509 | ||
Current period change | -1,446 | 506 | |
Balance at year end | 1,015 | 509 | -431 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Balance at beginning of year | 8 | ||
Current period change | 0 | -15 | |
Balance at year end | 8 | -7 | |
Accumulated Translation Adjustment [Member] | |||
Balance at beginning of year | 1,007 | ||
Current period change | 506 | -1,431 | |
Balance at year end | $501 | ($424) |
Stockholders_Equity_and_Employ4
Stockholders' Equity and Employee Stock Option Plans (Details Textual) (USD $) | 3 Months Ended | |||||
Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stockholders' Equity and Employee Stock Option Plans [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,152,177 | 4,575,855 | 15,467,434 | 13,467,582 | 13,047,736 | |
Fungible Share Ratio | 0 | |||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $0.01 | $0.01 | ||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 | ||||
Common Stock, Shares, Outstanding | 43,983,651 | 43,351,850 |
Stockholders_Equity_and_Employ5
Stockholders' Equity and Employee Stock Option Plans Stock Award Activity (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
Stock Award Activity [Abstract] | ||||
Number of Shares Available for Grant, Opening Balance | 4,575,855 | 13,467,582 | 13,047,736 | 15,467,434 |
Options and SARS, Outstanding, Number, opening balance | 4,104,849 | 3,939,315 | 3,103,472 | 5,505,404 |
Options and SARS, Outstanding opening balance, Weighted Average Exercise Price, | $4.13 | $6.08 | $8.71 | |
Number Of Shares Available For Grant, Options ans SARS Granted | -468,000 | -1,785,728 | -1,883,388 | |
Options and SARS, Grants in Period | 468,000 | 1,785,728 | 1,883,388 | |
Options and SARS, Grants in Period, Weighted Average Exercise Price | $2.46 | $2.34 | $3.21 | |
Number of shares available for grant, RSU granted | -2,191,535 | -702,665 | -700,987 | |
Number Of Shares Available For Grant, Options and SARS Canceled | 1,970,662 | 1,620,194 | 1,047,545 | |
Options and SARS, Forfeitures in Period | -1,970,662 | -1,620,194 | -1,047,545 | |
Options and SARS, Forfeitures in Period, Weighted Average Exercise Price | $4.70 | $6.89 | $8.73 | |
Number of shares available for grant, RSU canceled | 1,265,195 | 471,867 | 315,817 | |
Options and SARS, Exercises in Period, Shares | -5,395 | |||
Options and SARS, Exercises in Period, Weighted Average Exercise Price | $3.17 | |||
Unissued shares returned to plan | -15,542,434 | |||
1998 Directors Plan shares expired | -75,000 | -60,000 | ||
Number of Additional Shares Authorized | 7,122,039 | 1,700,859 | ||
Number of Shares Available for Grant, Ending Balance | 5,152,177 | 4,575,855 | 13,467,582 | 15,467,434 |
Options and SARS, Outstanding, Number, Closing balance | 2,596,792 | 4,104,849 | 3,939,315 | 5,505,404 |
Options and SARS, Outstanding ending balance, Weighted Average Exercise Price | $3.40 | $4.13 | $6.08 | |
Stockholders' Equity and Employee Stock Option Plans (Textual) [Abstract] | ||||
Options, Exercises in Period, Total Intrinsic Value | $3,000 | $0 | $0 |
Stockholders_Equity_and_Employ6
Stockholders' Equity and Employee Stock Option Plans 1997 Stock Plan (Details) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Apr. 01, 2013 | Mar. 31, 2013 | Dec. 31, 2011 | |
1997 Stock Plan [Abstract] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 9,042,398 | 10,905,404 | 20,972,838 | |||
Options and SARS, Outstanding, Number | 4,104,849 | 3,939,315 | 2,596,792 | 5,505,404 | 3,103,472 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional Shares Authorized in 2013 Amendment | 5,400,000 | |||||
Number of Additional Shares Authorized | 7,122,039 | 1,700,859 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,575,855 | 13,467,582 | 5,152,177 | 15,467,434 | 13,047,736 |
Stockholders_Equity_and_Employ7
Stockholders' Equity and Employee Stock Option Plans RSU and RSA Activity (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
RSU and RSA activity [Abstract] | |||
RSU/ RSA Nonvested and outstanding opening balance, Number | 1,368,097 | 1,929,614 | 2,521,593 |
RSU/ RSA Nonvested and Outstanding Opening balance, Weighted Average Grant Date Fair Value | $5.22 | $6.56 | $8.40 |
RSU/ RSA, Grants in Period | 1,289,138 | 419,056 | 700,987 |
RSU/RSA, Grants in Period, Weighted Average Grant Date Fair Value | $2.51 | $2.34 | $3.25 |
RSU/RSA Vested in Period | -500,528 | -522,286 | -977,149 |
RSU/ RSA Vested in Period, Weighted Average Grant Date Fair Value | $5.78 | $6.99 | $8.48 |
RSU/ RSA Forfeited in Period | -863,278 | -458,287 | -315,817 |
RSU/RSA, Forfeitures, Weighted Average Grant Date Fair Value | $3.69 | $6.19 | $7.80 |
RSU/ RSA Nonvested and outstanding ending balance, Number | 1,293,429 | 1,368,097 | 1,929,614 |
RSU/ RSA Nonvested and Outstanding Closing balance, Weighted Average Grant Date Fair Value | $3.32 | $5.22 | $6.56 |
Total fair value of RSUs vested and released | $1.20 | $1.20 | $3.70 |
RSU, Vested and Expected to Vest, Outstanding, Number | 1,242,853 | ||
RSU, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $2.10 | ||
Share Price | $1.70 |
Stockholders_Equity_and_Employ8
Stockholders' Equity and Employee Stock Option Plans Stock option outstanding by exercise price range (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 7 years 2 months 19 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $0 | ||||
Options and SARS, Outstanding, Weighted Average Exercise Price | $3.40 | $4.13 | $6.08 | $8.71 | |
Options and SARS, Outstanding, Number | 2,596,792 | 4,104,849 | 5,505,404 | 3,939,315 | 3,103,472 |
Options, Vested and Expected to Vest, Outstanding, Number | 2,474,785 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 7 years 2 months 12 days | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $3.45 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 0 | ||||
Options, Exercisable, Number | 1,116,197 | ||||
Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 6 months 25 days | ||||
Options, Exercisable, Weighted Average Exercise Price | $4.50 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 0 | ||||
Exercise Price $2.03 - $2.23 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $2.02 | ||||
Exercise Price Range, Upper Range Limit | $2.23 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 238,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 8 years 10 months 17 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $2.13 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | ||||
Exercise Price Range $2.24 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $2.24 | ||||
Exercise Price Range, Upper Range Limit | $2.24 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 440,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 9 years 3 months | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $2.24 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | ||||
Exercise Price Range $2.29 - $2.34 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $2.29 | ||||
Exercise Price Range, Upper Range Limit | $2.34 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 18,400 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 9 years 4 months 13 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $2.33 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | ||||
Exercise Price Range $2.37 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $2.37 | ||||
Exercise Price Range, Upper Range Limit | $2.37 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 585,200 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 8 years 5 months 8 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $2.37 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | ||||
Exercise Price Range $2.42 - $2.86 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $2.42 | ||||
Exercise Price Range, Upper Range Limit | $2.86 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 130,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 8 years 11 months 19 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $2.52 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | ||||
Exercise Price Range $3.17 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $3.17 | ||||
Exercise Price Range, Upper Range Limit | $3.17 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 609,992 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 7 years 3 months 14 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $3.17 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | ||||
Exercise Price Range $3.25 - $5.53 [Member] [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $3.25 | ||||
Exercise Price Range, Upper Range Limit | $5.53 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 235,200 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 4 years 7 months 13 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $4.28 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | ||||
Exercise Price Range $7.46 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $7.46 | ||||
Exercise Price Range, Upper Range Limit | $7.46 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 250,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 2 years 7 months 17 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $7.46 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | ||||
Exercise Price Range $8.20 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $8.20 | ||||
Exercise Price Range, Upper Range Limit | $8.20 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 40,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 4 months 24 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $8.20 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | ||||
Exercise Price Range $9.08 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $9.08 | ||||
Exercise Price Range, Upper Range Limit | $9.08 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 50,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 1 year 4 months 20 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $9.08 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $0 |
Stock_Based_Compensation_Stock
Stock Based Compensation Stock Based Compensation, Fair Value assumptions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock based Compensation, Fair Value Assumptions [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.00% | 1.60% | 0.90% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 66.30% | 64.80% | 63.90% |
Fair Value Assumptions, Expected Term | 5 years 11 months 23 days | 6 years 1 month 27 days | 6 years 1 month 6 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $1.47 | $1.39 | $1.85 |
Contractual term of options awarded | 10 years |
Stock_Based_Compensation_Equit
Stock Based Compensation Equity Compensation expense for RSUs and RSAs with Financial or other Performance based vesting requirments (Details) (USD $) | 12 Months Ended | 23 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 | Sep. 30, 2014 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 700,800 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | $324,000 | ||||
Fair Value of Performance Awards on Grant Date | 2,277,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 1,953,000 | ||||
Latest Date that Performance condition could be met | |||||
Aug 2010 Grant Date [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 80,000 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | 0 | ||||
Fair Value of Performance Awards on Grant Date | 596,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 596,000 | ||||
Latest Date that Performance condition could be met | Apr-15 | ||||
November 2011 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 50,000 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | 0 | ||||
Fair Value of Performance Awards on Grant Date | 277,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 277,000 | ||||
Latest Date that Performance condition could be met | Apr-15 | ||||
August 2010 and November 2011 Grant Date [Member] | |||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | 264,000 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Reversed Share Based Awards Other than Options | 264,000 | ||||
Number of non-vested equity-based payment instruments with performance condition excluding stock (or unit) options | 130,000 | ||||
June 2014 Grant Date [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 570,800 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | 324,000 | ||||
Fair Value of Performance Awards on Grant Date | 1,404,000 | 743,000 | 2,345,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 1,080,000 | ||||
Latest Date that Performance condition could be met | Dec-14 | ||||
Number of non-vested equity-based payment instruments with performance condition excluding stock (or unit) options | 80,500 | 302,000 | 953,300 | ||
Fair Value of Performance Awards on Grant Date for employees who terminated | 198,000 | ||||
Grant date fair value of awards that will not vest | $1,000,000 |
Stock_Based_Compensation_Expen
Stock Based Compensation Expense Allocation (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $2,000,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 1 month 6 days | |||
Allocated Share-based Compensation Expense, Net of Tax | 1,197,000 | 2,538,000 | 6,976,000 | |
Stock based compensation capitalized in Inventory | 8,000 | 42,000 | ||
Stock Based Compensation capitalized in Deferred COGS | 2,000 | 8,000 | ||
Cost of Product [Member] | ||||
Allocated Share-based Compensation Expense | ||||
Cost of Service [Member] | ||||
Allocated Share-based Compensation Expense | 292,000 | 198,000 | 678,000 | |
Product Development [Member] | ||||
Allocated Share-based Compensation Expense | -73,000 | 156,000 | 2,304,000 | |
Selling and Marketing Expense [Member] | ||||
Allocated Share-based Compensation Expense | 206,000 | 84,000 | 1,896,000 | |
General and Administrative Expense [Member] | ||||
Allocated Share-based Compensation Expense | 1,114,000 | 967,000 | 2,098,000 | |
Discontinued Operations [Member] | ||||
Allocated Share-based Compensation Expense | -342,000 | 1,133,000 | 0 | |
Total Share based compensation costs prior to tax benefit [Member] | ||||
Allocated Share-based Compensation Expense | 1,197,000 | 2,538,000 | 6,976,000 | |
Tax benefit [Member] | ||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $0 | $0 | $0 |
Significant_Customers_Details_
Significant Customers (Details Textual) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues attributable to sales [Line Items] | |||
Number of Customers | 2 | ||
Total | 33.90% | 42.70% | 14.00% |
Ebv Avnet [Member] | |||
Revenues attributable to sales [Line Items] | |||
Total | 26.20% | 26.60% | 9.50% |
Enel [Member] | |||
Revenues attributable to sales [Line Items] | |||
Total | 7.70% | 16.10% | 4.50% |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Abstract] | ||||
Number of acquisitions | 4 | |||
Balance as of Period End | $5,936 | $8,390 | $8,276 | |
Goodwill, Impairment Loss | -3,400 | -3,388 | 0 | 0 |
Goodwill, Acquired During Period | 1,257 | |||
Balance as of Period Start | 8,390 | 8,276 | ||
Goodwill, translation adjustment | ($323) | $114 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Developed Technology acquired | $1,500,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -87,000 | ||
Finite-Lived Intangible Assets, Net | 1,413,000 | 0 | |
Finite-lived Intangible Assets Acquired | 1,500,000 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 years 1 month 15 days | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 231,000 | ||
Amortization of Intangible Assets | 46,000 | ||
Amortization of intangible assets included in operating expenses | 41,000 | ||
Amortization of Intangible Assets | 87,000 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 231,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 231,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 231,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 231,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 258,000 | ||
Developed Technology Rights [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 800,000 | ||
Developed Technology acquired | 800,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -46,000 | ||
Finite-Lived Intangible Assets, Net | 754,000 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 years 1 month 15 days | ||
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 500,000 | ||
Developed Technology acquired | 500,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -29,000 | ||
Finite-Lived Intangible Assets, Net | 471,000 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 years 1 month 15 days | ||
Trade Names [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 200,000 | ||
Developed Technology acquired | 200,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -12,000 | ||
Finite-Lived Intangible Assets, Net | $188,000 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 years 1 month 15 days |
Commitments_and_Contingencies_2
Commitments and Contingencies Future minimum lease payments for financing transactions (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
Minimum Lease Payments, Capital Leases, Next Twelve Months | $3,411 |
Minimum Lease Payments, Capital Leases, within Two Years | 3,486 |
Minimum Lease Payments, Capital Leases, within Three Years | 3,604 |
Minimum Lease Payments, Capital Leases, within Four Years | 3,735 |
Minimum Lease Payments, Capital Leases, within Five Years | 4,196 |
Minimum Lease Payments, Capital Leases, Thereafter | 651 |
Minimum Lease Payments, Capital Leases | 19,083 |
Interest Portion of Minimum Lease Payments, Sale Leaseback Transactions | -2,962 |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 16,121 |
Other Long-term Debt for building, Current | 2,459 |
Other Long-term Debt for building, Noncurrent | $13,662 |
Commitments_and_Contingencies_3
Commitments and Contingencies Future minimum lease payments for Operating Leases (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Leases [Abstract] | |||
Operating Leases, Future Minimum Payments, Due in Twelve Months | $1,148,000 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 911,000 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 899,000 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 817,000 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 776,000 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 194,000 | ||
Operating Leases, Future Minimum Payments Due | 4,745,000 | ||
Future minimum lease payments for land lease, Total | 4,100,000 | ||
Operating Leases, Rent Expense | 1,483,000 | 1,527,000 | 1,682,000 |
Deferred Rent Credit | 180,000 | 215,000 | |
Deferred Rent Credit, Current | 32,000 | 35,000 | |
Sublease remaining term | 36 months | ||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 1,900,000 | ||
Operating Leases, Rent Expense, Sublease Rentals | -202,000 | 0 | 0 |
Rent expense in discontinued operations | -160,000 | -145,000 | 0 |
Operating Leases, Rent Expense, Net | $1,121,000 | $1,382,000 | $1,682,000 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2013 | Apr. 30, 2009 |
Commitments and Contingencies (Textual) [Abstract] | ||
Return of payments received for components sold | $16.70 | |
Loss Contingency, Settlement Agreement, Consideration | $3.50 |
Commitments_and_Contingencies_5
Commitments and Contingencies Line of Credit (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | |||
Line of Credit Maintained | $5,000,000 | $1,000,000 | |
Collateral required - old line of credit | 6,300,000 | ||
Number of Letter of Credit | 1 | ||
Letters of Credit Outstanding, Amount | 113,000 | ||
Restricted Investments, Current | $1,401,000 | $0 |
Commitments_and_Contingencies_6
Commitments and Contingencies Royalties (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Royalties [Abstract] | |||
Royalty Expense | $500,000 | $418,000 | $508,000 |
Disposal group, including discontinued operation, royalty expense | $1,000 | $52,000 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Loss from Continuing Operations before Income Taxes, Domestic | ($15,592) | ($14,358) | ($13,614) | ||||||||
Income (loss) from Continuing Operations before Income Taxes, Foreign | 192 | -70 | 652 | ||||||||
Loss from Continuing Operations | ($2,456) | ($7,193) | ($3,166) | ($2,585) | ($1,482) | ($3,397) | ($1,446) | ($8,103) | ($15,400) | ($14,428) | ($12,962) |
Income_Taxes_Components_of_inc1
Income Taxes Components of income tax expense/ (benefit) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal: | |||||||||||
Current | $0 | $0 | $0 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Total federal provision | 0 | 0 | 0 | ||||||||
State: | |||||||||||
Current | 16 | 17 | 5 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Total state provision | 16 | 17 | 5 | ||||||||
Foreign: | |||||||||||
Current | 195 | 294 | 214 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Total foreign provision | 195 | 294 | 214 | ||||||||
Total income tax expense | $97 | $33 | $106 | ($25) | $55 | $113 | $106 | $37 | $211 | $311 | $219 |
Recovered_Sheet3
Income Taxes Effective Rate Reconciliation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Rate Reconciliation [Abstract] | |||||||||||
Income Tax Reconciliation, Income Tax Benefit, at Federal Statutory Income Tax Rate | ($5,390) | ($5,050) | ($4,537) | ||||||||
Income Tax Reconciliation, State and Local Income Taxes | -577 | 17 | 5 | ||||||||
U.S.-Foreign rate differential | 100 | 342 | 87 | ||||||||
Change in Valuation Allowance | 4,115 | 5,862 | 4,530 | ||||||||
Income Tax Reconciliation, Tax Credits, Research | 357 | -1,241 | 0 | ||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount | 1,560 | 406 | 0 | ||||||||
Others | 46 | -25 | 134 | ||||||||
Total income tax expense | $97 | $33 | $106 | ($25) | $55 | $113 | $106 | $37 | $211 | $311 | $219 |
Recovered_Sheet4
Income Taxes Components of deferred tax asset/ liability (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Net operating loss carry forwards | $72,058 | $60,961 | |
Tax credit carry forwards | 26,571 | 26,869 | |
Fixed and intangible assets | 6,424 | 7,246 | |
Capitalized research and development costs | 58 | 58 | |
Reserves and other cumulative temporary differences | 15,535 | 19,380 | |
Gross deferred income tax assets | 120,646 | 114,514 | |
Valuation allowance | -120,646 | -114,514 | |
Net deferred income tax assets | $0 | $0 | |
Percentage of deferred tax assets on which valuation allowance is created | 100.00% | 100.00% |
Income_Taxes_Components_of_Def1
Income Taxes Components of Deferred Tax asset/ liability (Textual) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Components of deferred tax assets and liabilities [Line Items] | |
Undistributed Earnings of Foreign Subsidiaries | $10.80 |
State and Local Jurisdiction [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Operating Loss Carryforwards | 101 |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Tax Credit Carryforward, Amount | 15.4 |
Domestic Tax Authority [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Operating Loss Carryforwards | 228.9 |
Operating Loss Carryforwards, Expiration Dates | 31-Dec-34 |
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Tax Credit Carryforward, Amount | $11 |
Tax Credit Carryforward, Expiration Date | 31-Dec-34 |
Income_Taxes_Companys_uncertai1
Income Taxes Company's uncertain tax positions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Company's uncertain tax positions [Abstract] | |||
Balance as of the beginning of the year | $2,138,000 | $3,382,000 | |
Tax positions related to current year: | |||
Additions | 76,000 | 31,000 | |
Reductions | -48,000 | 0 | |
Tax positions related to prior years: | |||
Additions | 0 | 0 | |
Reductions | -232,000 | -571,000 | |
Settlements | 0 | 0 | |
Lapses in statute of limitations | -575,000 | -704,000 | |
Balance as of the end of the year | 1,359,000 | 2,138,000 | 3,382,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 469,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 99,000 | ||
Unrecognized tax benfits, reduction in accrued interest and penalties | $35,000 | $6,000 | $71,000 |
Warranty_Reserves_Details
Warranty Reserves (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Warranty Reserves [Abstract] | ||
Warranty reserve | $143,000 | $515,000 |
Warranty reserve, Noncurrent | 46,000 | |
Warranty reserve | $143,000 | $561,000 |
Related_Parties_Details_Textua
Related Parties (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2000 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Parties - Enel (Additional Textual) [Abstract] | ||||
Stock Issued During Period, Value, New Issues | $130,700,000 | |||
Stock Issued During Period, Shares, New Issues | 3,000,000 | |||
Number of shares sold by Related Party. | 0 | |||
Number of board members Related Party can nominate | 1 | |||
Number of Related Party Representatives on Board | 0 | |||
Revenue from Related Parties | $2,993,000 | $7,363,000 | $6,458,000 |
Restructuring_Restructuring_Pl
Restructuring Restructuring Plan (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | $164,000 | $227,000 | $0 | $0 | $0 | $0 | $0 | $2,254,000 | $391,000 | $2,254,000 | $1,176,000 | |
Restructuring Reserve, Current | 701,000 | 49,000 | 701,000 | 49,000 | ||||||||
May 2012 Restructuring Plan [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 42 | |||||||||||
Restructuring Reserve | 49,000 | 149,000 | ||||||||||
Restructuring charges | 0 | 1,200,000 | ||||||||||
Payments for Restructuring | 49,000 | 100,000 | ||||||||||
Restructuring Reserve, Current | 0 | 0 | 49,000 | |||||||||
February 2013 Restructuring Plan [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 43 | |||||||||||
Restructuring Reserve | 0 | |||||||||||
Restructuring charges | 2,522,000 | |||||||||||
Payments for Restructuring | 2,522,000 | |||||||||||
Restructuring Reserve, Current | 0 | 0 | ||||||||||
2014 Restructuring Plan [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 44 | |||||||||||
Restructuring Reserve | 0 | 0 | ||||||||||
Restructuring charges | 1,841,000 | |||||||||||
Payments for Restructuring | 1,140,000 | |||||||||||
Restructuring Reserve, Current | $701,000 | $701,000 |
Restructuring_Restructuring_Pl1
Restructuring Restructuring Plan (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restructuring charges | $164,000 | $227,000 | $0 | $0 | $0 | $0 | $0 | $2,254,000 | $391,000 | $2,254,000 | $1,176,000 | |
Restructuring Costs in Discontinued Operations | 1,400,000 | |||||||||||
Restructuring Reserve, Current | 701,000 | 49,000 | 701,000 | 49,000 | ||||||||
May 2012 Restructuring Plan [Member] | ||||||||||||
Restructuring Reserve | 49,000 | 149,000 | ||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 42 | |||||||||||
Restructuring charges | 0 | 1,200,000 | ||||||||||
Payments for Restructuring | 49,000 | 100,000 | ||||||||||
Restructuring Reserve, Current | 0 | 0 | 49,000 | |||||||||
2014 Restructuring Plan [Member] | ||||||||||||
Restructuring Reserve | 0 | 0 | ||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 44 | |||||||||||
Restructuring charges | 1,841,000 | |||||||||||
Restructuring Costs in Discontinued Operations | 1,400,000 | |||||||||||
Payments for Restructuring | 1,140,000 | |||||||||||
Restructuring Reserve, Current | $701,000 | $701,000 |
Valuation_and_Qualifying_accou1
Valuation and Qualifying accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Opening Balance | $353 | $430 | $390 |
Valuation Allowances and Reserves, Charged to Cost and Expense | -46 | 55 | 48 |
Valuation Allowances and Reserves, Adjustments | 250 | 132 | 8 |
Valuation Allowances and Reserves, Closing Balance | 57 | 353 | 430 |
Allowance for Sales Returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Opening Balance | 530 | 429 | 1,411 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 3,729 | 5,375 | 4,265 |
Valuation Allowances and Reserves, Adjustments | 3,858 | 5,274 | 5,247 |
Valuation Allowances and Reserves, Closing Balance | $401 | $530 | $429 |
Segment_Disclosure_Segment_Rep
Segment Disclosure Segment Reporting, Reporting by Segment (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||
Revenues | $9,647 | [1] | $9,178 | [1] | $8,981 | [1] | $10,924 | [1] | $12,518 | [1] | $10,177 | [1] | $11,398 | [1] | $11,764 | [1] | $38,730 | [1] | $45,857 | [1] | $134,017 | [1] |
Gross Profit | 5,331 | 4,998 | 5,197 | 6,386 | 7,590 | 6,382 | 6,759 | 7,111 | 21,912 | 27,842 | 56,455 | |||||||||||
Restructuring charges | -164 | -227 | 0 | 0 | 0 | 0 | 0 | -2,254 | -391 | -2,254 | -1,176 | |||||||||||
Litigation charges | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3,452 | 0 | -3,452 | 0 | |||||||||||
Interest and other income (expense), net | 269 | 719 | -69 | 11 | -216 | -606 | -164 | 284 | 930 | -702 | -362 | |||||||||||
Interest Expense, Other | -261 | -271 | -280 | -288 | -297 | -305 | -312 | -321 | -1,100 | -1,235 | -1,360 | |||||||||||
Income Tax Expense (Benefit) | 97 | 33 | 106 | -25 | 55 | 113 | 106 | 37 | 211 | 311 | 219 | |||||||||||
Net Income (Loss) Attributable to Parent | ($2,553) | ($9,188) | ($8,612) | ($3,973) | ($4,023) | ($3,513) | ($827) | ($9,247) | ($24,326) | ($17,610) | ($12,818) | |||||||||||
[1] | 1 Includes related party amounts of $2,993 in 2014, $7,363 in 2013, and $6,458 in 2012. See Note 14 for additional information on related party transactions. |
Segment_Disclosure_Details
Segment Disclosure (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Revenue Information by operating segment [Abstract] | ||||||||||||||||||||||
Revenues | $9,647 | [1] | $9,178 | [1] | $8,981 | [1] | $10,924 | [1] | $12,518 | [1] | $10,177 | [1] | $11,398 | [1] | $11,764 | [1] | $38,730 | [1] | $45,857 | [1] | $134,017 | [1] |
[1] | 1 Includes related party amounts of $2,993 in 2014, $7,363 in 2013, and $6,458 in 2012. See Note 14 for additional information on related party transactions. |
Segment_Disclosure_Details_1
Segment Disclosure (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | $9,647 | [1] | $9,178 | [1] | $8,981 | [1] | $10,924 | [1] | $12,518 | [1] | $10,177 | [1] | $11,398 | [1] | $11,764 | [1] | $38,730 | [1] | $45,857 | [1] | $134,017 | [1] |
United States [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | 10,680 | 11,787 | 32,981 | |||||||||||||||||||
Other Americas [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | 2,074 | 1,380 | 2,485 | |||||||||||||||||||
Total Americas [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | 12,754 | 13,167 | 35,466 | |||||||||||||||||||
Finland [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | 77 | 95 | 38,958 | |||||||||||||||||||
Germany [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | 10,733 | 12,789 | 13,097 | |||||||||||||||||||
Denmark [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | 66 | 55 | 10,939 | |||||||||||||||||||
Other EMEA [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | 3,618 | 6,955 | 21,195 | |||||||||||||||||||
Total EMEA [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | 14,494 | 19,894 | 84,189 | |||||||||||||||||||
China [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | 3,225 | 5,286 | 6,848 | |||||||||||||||||||
Other APJ [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | 8,257 | 7,510 | 7,514 | |||||||||||||||||||
Total APJ [Member] | ||||||||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||||||||
Revenues | $11,482 | $12,796 | $14,362 | |||||||||||||||||||
[1] | 1 Includes related party amounts of $2,993 in 2014, $7,363 in 2013, and $6,458 in 2012. See Note 14 for additional information on related party transactions. |
Segment_Disclosure_Details_Tex
Segment Disclosure (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Disclosure (Textual) [Abstract] | ||
Long-lived assets US | $15.60 | $24.60 |
Number of geographic areas | 3 |
Joint_Venture_Details_Textual
Joint Venture (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Joint Venture (Textual) [Abstract] | |||
Net Income (Loss) Attributable to Noncontrolling Interest | $535,000 | $808,000 | $363,000 |
Ownership interest in the joint venture | 51.00% | ||
Registered capital of the Joint venture | $4,000,000 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Revenues | $9,647 | [1] | $9,178 | [1] | $8,981 | [1] | $10,924 | [1] | $12,518 | [1] | $10,177 | [1] | $11,398 | [1] | $11,764 | [1] | $38,730 | [1] | $45,857 | [1] | $134,017 | [1] |
Cost of Revenue | 4,316 | 4,180 | 3,784 | 4,538 | 4,928 | 3,795 | 4,639 | 4,653 | 16,818 | 18,015 | 77,562 | |||||||||||
Gross Profit | 5,331 | 4,998 | 5,197 | 6,386 | 7,590 | 6,382 | 6,759 | 7,111 | 21,912 | 27,842 | 56,455 | |||||||||||
Research and Development Expense | 2,286 | [2] | 2,305 | [2] | 2,170 | [2] | 2,749 | [2] | 2,830 | [2] | 2,711 | [2] | 2,258 | [2] | 3,123 | [2] | 9,510 | [2] | 10,922 | [2] | 30,009 | [2] |
Selling and Marketing Expense | 2,498 | [2] | 2,160 | [2] | 2,265 | [2] | 2,175 | [2] | 2,130 | [2] | 2,232 | [2] | 2,237 | [2] | 2,462 | [2] | 9,098 | [2] | 9,061 | [2] | 21,460 | [2] |
General and Administrative Expense | 2,847 | [2] | 3,538 | [2] | 3,579 | [2] | 3,770 | [2] | 3,599 | [2] | 3,925 | [2] | 3,234 | [2] | 3,886 | [2] | 13,734 | [2] | 14,644 | [2] | 15,050 | [2] |
Impairment of Long-Lived Assets Held-for-use | 0 | 4,409 | 0 | 0 | 0 | 0 | 0 | 0 | 4,409 | 0 | 0 | |||||||||||
Litigation charges | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,452 | 0 | 3,452 | 0 | |||||||||||
Restructuring charges | 164 | 227 | 0 | 0 | 0 | 0 | 0 | 2,254 | 391 | 2,254 | 1,176 | |||||||||||
Operating Expenses | 7,795 | 12,639 | 8,014 | 8,694 | 8,559 | 8,868 | 7,729 | 15,177 | 37,142 | 40,333 | 67,695 | |||||||||||
Loss from operations | -2,464 | -7,641 | -2,817 | -2,308 | -969 | -2,486 | -970 | -8,066 | -15,230 | -12,491 | -11,240 | |||||||||||
Interest and other income (expense), net | 269 | 719 | -69 | 11 | -216 | -606 | -164 | 284 | 930 | -702 | -362 | |||||||||||
Interest Expense, Other | -261 | -271 | -280 | -288 | -297 | -305 | -312 | -321 | -1,100 | -1,235 | -1,360 | |||||||||||
Loss from Continuing Operations | -2,456 | -7,193 | -3,166 | -2,585 | -1,482 | -3,397 | -1,446 | -8,103 | -15,400 | -14,428 | -12,962 | |||||||||||
Income Tax Expense (Benefit) | 97 | 33 | 106 | -25 | 55 | 113 | 106 | 37 | 211 | 311 | 219 | |||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | -2,553 | -7,226 | -3,272 | -2,560 | -1,537 | -3,510 | -1,552 | -8,140 | -15,611 | -14,739 | -12,818 | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | -2,141 | -5,579 | -1,530 | -2,704 | -269 | 549 | -1,255 | -9,250 | -3,679 | 0 | |||||||||||
Less: comprehensive loss attributable to non controlling interest | 0 | 179 | 239 | 117 | 218 | 266 | 176 | 148 | 535 | 808 | 0 | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | -1,962 | -5,340 | -1,413 | -2,486 | -3 | 725 | -1,107 | -8,715 | -2,871 | 0 | |||||||||||
Net Income (Loss) Attributable to Parent | ($2,553) | ($9,188) | ($8,612) | ($3,973) | ($4,023) | ($3,513) | ($827) | ($9,247) | ($24,326) | ($17,610) | ($12,818) | |||||||||||
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | ($0.06) | ($0.17) | ($0.08) | ($0.06) | ($0.04) | ($0.08) | ($0.04) | ($0.19) | ($0.36) | ($0.34) | ($0.30) | |||||||||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic and Diluted Share | $0 | ($0.05) | ($0.12) | ($0.03) | ($0.06) | $0 | $0.02 | ($0.03) | ($0.20) | ($0.07) | $0 | |||||||||||
Earnings Per Share, Basic and Diluted | ($0.06) | ($0.21) | ($0.20) | ($0.09) | ($0.09) | ($0.08) | ($0.02) | ($0.22) | ($0.56) | ($0.41) | ($0.30) | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 43,904 | 43,507 | 43,325 | 43,264 | 43,252 | 43,184 | 43,000 | 42,929 | 43,502 | 43,092 | 42,650 | |||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 43,904 | 43,507 | 43,325 | 43,264 | 43,252 | 43,184 | 43,000 | 42,929 | 43,502 | 43,092 | 42,650 | |||||||||||
[1] | 1 Includes related party amounts of $2,993 in 2014, $7,363 in 2013, and $6,458 in 2012. See Note 14 for additional information on related party transactions. | |||||||||||||||||||||
[2] | 2 See Note 8 for summary of amounts included representing stock-based compensation expense. |