Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ECHELON CORP | ||
Entity Central Index Key | 31,347 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 28.9 | ||
Entity Common Stock, Shares Outstanding | 4,416,946 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 7,691 | $ 13,340 | |
Restricted Investments, Current | 1,401 | 1,401 | |
Short-term investments | 16,978 | 28,829 | |
Accounts receivable, net of allowances of $883 in 2013 and $859 in 2012 | [1] | 4,030 | 3,948 |
Inventories | 2,893 | 3,243 | |
Deferred cost of goods sold | 1,122 | 935 | |
Other current assets | 1,109 | 1,084 | |
Disposal Group, Including Discontinued Operation, Other Assets, Current | 0 | 597 | |
Total current assets | 35,224 | 53,377 | |
Property and equipment, net | 595 | 10,190 | |
Intangible Assets, Net (Excluding Goodwill) | 1,183 | 1,413 | |
Goodwill | 0 | 5,936 | |
Other long-term assets | 1,044 | 694 | |
Long-term assets of discontinued operations held for sale | 0 | 36 | |
Total assets | 38,046 | 71,646 | |
CURRENT LIABILITIES: | |||
Accounts payable | 2,267 | 3,614 | |
Accrued liabilities | 2,885 | 2,844 | |
Current portion of lease financing obligations | 0 | 2,459 | |
Deferred revenues | 3,359 | 3,126 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 0 | 1,024 | |
Total current liabilities | 8,511 | 13,067 | |
LONG-TERM LIABILITIES: | |||
Lease financing obligations, excluding current portion | 0 | 13,662 | |
Other long-term liabilities | 614 | 1,740 | |
Total long-term liabilities | 614 | 15,402 | |
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 | 47 | 47 | |
Additional paid-in capital | 356,746 | 356,606 | |
Treasury stock (3,219,184 shares in 2013 and 2012) | (28,130) | (28,130) | |
Accumulated other comprehensive income | (1,594) | (431) | |
Accumulated deficit | (298,402) | (285,169) | |
Total Echelon Corporation stockholders' equity | 28,667 | 42,923 | |
Noncontrolling interest in subsidiary | 254 | 254 | |
Total stockholders' equity | 28,921 | 43,177 | |
Total liabilities and stockholders' equity | $ 38,046 | $ 71,646 | |
[1] | Includes related party amounts of $827 in 2015 and $158 in 2014. See Note 14 for additional information on related party transactions. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Due from Related Parties, Current | $ 827 | $ 158 |
Allowance for Bad Debts Reserve and Sales Returns | $ 521 | $ 458 |
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 | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 4,738,370 | 4,720,283 |
Common Stock, Shares, Outstanding | 4,416,452 | 4,398,365 |
Treasury Stock, Shares | 321,918 | 321,918 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenues: | ||||
Revenues | [1] | $ 38,804 | $ 38,730 | $ 45,857 |
Cost of revenues: | ||||
Cost of Revenue | [2] | 16,528 | 16,818 | 18,015 |
Gross profit | 22,276 | 21,912 | 27,842 | |
Operating expenses: | ||||
Product development | [2] | 9,747 | 9,510 | 10,922 |
Sales and marketing | [2] | 7,832 | 9,098 | 9,061 |
General and administrative | [2] | 9,249 | 13,734 | 14,644 |
Goodwill impairment charges | 5,698 | 0 | 0 | |
Lease termination charges | 3,337 | 0 | 0 | |
Loss on write down of property, equipment and other | 0 | 4,409 | 0 | |
Litigation charges | 0 | 0 | 3,452 | |
Restructuring charges | 0 | 391 | 2,254 | |
Total operating expenses | 35,863 | 37,142 | 40,333 | |
Loss from operations | (13,587) | (15,230) | (12,491) | |
Interest and other income (expense), net | 791 | 930 | (702) | |
Interest expense on lease financing obligations | (387) | (1,100) | (1,235) | |
Loss before provision for income taxes | (13,183) | (15,400) | (14,428) | |
Income tax expense | 50 | 211 | 311 | |
Net loss from continuing operations | (13,233) | (15,611) | (14,739) | |
Net loss from discontinued operations, net of income taxes(2) | [2] | 0 | (9,250) | (3,679) |
Net loss from discontinued operations attributable to non controlling interest, net of income taxes | 0 | 535 | 808 | |
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | 0 | (8,715) | (2,871) | |
Net Income (Loss) Attributable to Parent | $ (13,233) | $ (24,326) | $ (17,610) | |
Net income (loss) per share: | ||||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ (3) | $ (3.59) | $ (3.42) | |
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | 0 | (2) | (0.67) | |
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ (3) | $ (5.59) | $ (4.09) | |
Shares used in computing net income (loss) per share: | ||||
Basic | 4,409 | 4,350 | 4,309 | |
Diluted | 4,409 | 4,350 | 4,309 | |
[1] | Includes related party amounts of $4,909 in 2015, $2,993 in 2014, and $7,363 in 2013. See Note 14 for additional information on related party transactions. | |||
[2] | See Note 8 for summary of amounts included representing stock-based compensation expense. |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenue from related parties | $ 4,909 | $ 2,993 | $ 7,363 |
Consolidated Statements of Comp
Consolidated Statements of Compehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net loss from continuing operations | $ (13,233) | $ (15,611) | $ (14,739) | |
Net loss from discontinued operations, net of income taxes | [1] | 0 | (9,250) | (3,679) |
Net loss including non-controlling interest | (13,233) | (24,861) | (18,418) | |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (1,158) | (1,431) | 506 | |
Unrealized holding gain (loss) on available-for-sale securities | (5) | (15) | 0 | |
Total other comprehensive income (loss) | (1,163) | (1,446) | 506 | |
Comprehensive loss | (14,396) | (26,307) | (17,912) | |
Less: comprehensive loss attributable to non controlling interest | 0 | (535) | (808) | |
Comprehensive loss attributable to Echelon Corporation Stockholders | $ (14,396) | $ (25,772) | $ (17,104) | |
[1] | See Note 8 for summary of amounts included representing stock-based compensation expense. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Noncontrolling Interest [Member] |
Common Stock, Shares, Issued at Dec. 31, 2012 | (4,627,000) | (322,000) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2012 | $ 83,795 | $ 46 | $ (28,130) | $ 353,006 | $ 509 | $ (243,233) | $ 1,597 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Release of performance shares, Shares | 49,000 | ||||||
Release of performance shares, value | 0 | $ 1 | (1) | ||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options Shares | (19,000) | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | (444) | $ 0 | (444) | ||||
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) Attributable to Parent | (17,610) | ||||||
Net loss including non-controlling interest | (18,418) | (17,610) | (808) | ||||
Fair value of stock issued in connection with acquisition | 0 | ||||||
Common Stock, Shares, Issued at Dec. 31, 2013 | (4,657,000) | (322,000) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2013 | 67,977 | $ 47 | $ (28,130) | 355,099 | 1,015 | (260,843) | 789 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock Issued During Period, Shares, Other | 0 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | 17 | $ 0 | 17 | ||||
Release of performance shares, Shares | 46,000 | ||||||
Release of performance shares, value | 0 | $ 0 | 0 | ||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options Shares | (17,000) | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | (422) | $ 0 | (422) | ||||
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) | (1,431) | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (15) | (15) | |||||
Net Income (Loss) Attributable to Parent | (24,326) | ||||||
Net loss including non-controlling interest | (24,861) | (24,326) | (535) | ||||
Stock Issued During Period, Shares, Acquisitions | 34,000 | ||||||
Fair value of stock issued in connection with acquisition | $ 715 | $ 0 | 715 | ||||
Common Stock, Shares, Issued at Dec. 31, 2014 | (4,720,283) | (4,720,000) | (322,000) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2014 | $ 43,177 | $ 47 | $ (28,130) | 356,606 | (431) | (285,169) | 254 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Release of performance shares, Shares | 34,000 | ||||||
Release of performance shares, value | 0 | $ 0 | 0 | ||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options Shares | (16,000) | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | (153) | $ 0 | (153) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 293 | 293 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (1,158) | (1,158) | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (5) | (5) | |||||
Net Income (Loss) Attributable to Parent | (13,233) | (13,233) | |||||
Net loss including non-controlling interest | (13,233) | 0 | |||||
Fair value of stock issued in connection with acquisition | $ 0 | ||||||
Common Stock, Shares, Issued at Dec. 31, 2015 | (4,738,370) | (4,738,000) | (322,000) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2015 | $ 28,921 | $ 47 | $ (28,130) | $ 356,746 | $ (1,594) | $ (298,402) | $ 254 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | |||
Net loss including non-controlling interest | $ (13,233) | $ (24,861) | $ (18,418) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 1,767 | 3,350 | 4,020 |
Lease termination charges | 3,337 | 0 | 0 |
Goodwill impairment charges | 5,698 | 3,388 | 0 |
Increase (decrease) in allowance for doubtful accounts | (19) | (57) | 47 |
Loss on disposal of Grid business | 0 | 254 | 0 |
Loss on disposal and write-down of fixed assets | 81 | 5,217 | 30 |
Increase in accrued investment income | (31) | (32) | (6) |
Stock-based compensation | 293 | 1,197 | 2,538 |
Adjustment to contingent consideration | (650) | 43 | 0 |
Change in operating assets and liabilities: | |||
Accounts receivable | (53) | 2,536 | 5,151 |
Inventories | 409 | 1,757 | 5,284 |
Deferred cost of goods sold | 277 | 209 | (797) |
Other current assets | 356 | 1,007 | 450 |
Accounts payable | (1,309) | (81) | (2,925) |
Accrued liabilities | (1,097) | (4,034) | 2,605 |
Deferred revenues | (707) | (846) | 978 |
Deferred rent | (45) | (35) | (36) |
Net cash used in operating activities | (4,926) | (10,988) | (1,079) |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | |||
Purchases of available-for-sale short-term investments | (16,974) | (28,975) | (46,947) |
Proceeds from maturities and sales of available‑for‑sale short‑term investments | 28,852 | 48,000 | 46,946 |
Change in other long-term assets | (795) | 29 | (51) |
Cash paid for acquisition, net of cash acquired | 0 | (924) | 0 |
Proceeds from divestiture of Grid business, net of transaction costs | 0 | 2,144 | 0 |
Capital expenditures | (306) | (746) | (971) |
Net cash (used in) provided by investing activities | 10,777 | 19,528 | (1,023) |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Principal payments of lease financing obligations | (11,278) | (2,064) | (2,056) |
Proceeds from exercise of stock options | 0 | 17 | 0 |
Restricted investments used as collateral for line of credit | 0 | (6,250) | 0 |
Repurchase of common stock from employees for payment of taxes on vesting of restricted stock units and upon exercise of stock options | (153) | (422) | (453) |
Net cash used in financing activities | (11,431) | (8,719) | (2,509) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (69) | (1,129) | 383 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (5,649) | (1,308) | (4,228) |
CASH AND CASH EQUIVALENTS: | |||
Beginning of period | 13,340 | 14,648 | 18,876 |
End of period | 7,691 | 13,340 | 14,648 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash paid for interest on lease financing obligations | 387 | 1,003 | 1,224 |
Cash paid for income taxes | 249 | 294 | 459 |
Fair value of stock issued in connection with acquisition | 0 | 715 | 0 |
Non-cash transfer from financing to investing for restricted investments used as collateral for credit cards | 0 | 1,399 | 0 |
Non-cash transfer of restricted investments to available-for-sale short-term investments | $ 0 | $ 4,851 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 2014, and 2013 are now classified as discontinued operations. 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. • The Company's sales are currently concentrated with a relatively small group of customers, as approximately 37.2% of net revenue for the year ended December 31, 2015 was 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, goodwill 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 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. In July 2015, the FASB deferred the effective date of ASU 2014-09 so that it will apply to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early application is permitted to the original effective date of December 15, 2016, in which case ASU 2014-09 would apply to annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). 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. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, related to balance sheet classification of deferred taxes. The ASU requires that deferred tax assets and liabilities be classified as noncurrent in the statement of financial position, thereby simplifying the current guidance that requires an entity to separate deferred assets and liabilities into current and noncurrent amounts. The ASU will be effective for us beginning in the first quarter of fiscal year 2018 though early adoption is permitted. We have early-adopted the ASU as of December 31, 2015 and due to the valuation allowance this adoption did not have a significant impact on our financial statements. No prior periods were retrospectively adjusted. In July 2015, the FASB issued an update to ASC 330, Inventory: Simplifying the Measurement of Inventory . Under this update, subsequent measurement of inventory is based on the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and disposal. This update does not apply to inventory that is measured using last-in, first-out or the retail inventory method. This update should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2017. Early adoption is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires, among other things, the recognition of lease assets and lease liabilities on the balance sheet by lessees for certain leases classified as operating leases under previous GAAP. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method with early adoption permitted. The Company is currently evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. 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. Therefore, multiple element arrangements are now limited. 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, 2015 , 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, 2015 , 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, 2015 . 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, Purchased materials $ 164 $ 402 Finished goods 2,729 2,841 $ 2,893 $ 3,243 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 years ended December 31, 2015 and 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 both the years ended December 31, 2015 and 2014 , the Company recognized impairments of its goodwill, which are described in more detail in Note 10. The Company recognized no impairment of goodwill during the year ended December 31, 2013 . 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, 2015 , 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, Accrued payroll and related costs $ 2,119 $ 1,463 Warranty reserve 120 143 Contingent consideration 318 — Restructuring charges — 701 Other accrued liabilities 328 537 $ 2,885 $ 2,844 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 have historically consisted 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, 2015 and 2014 , 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, 2015 2014 Enel Distribuzione Spa 18.2% 3.6% Avnet Europe Comm VA 12.9% 24.0% Total 31.1% 27.6% 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, 2015 , 2014 and 2013 (in thousands, except per share amounts): Year ended December 31, 2015 2014 2013 Net loss (Numerator): Net loss from continuing operations attributable to Echelon Corporation Stockholders $ (13,233 ) $ (15,611 ) $ (14,739 ) Net loss from discontinued operations attributable to Echelon Corporation Stockholders — (8,715 ) (2,871 ) Net loss attributable to Echelon Corporation Stockholders $ (13,233 ) $ (24,326 ) $ (17,610 ) Shares (Denominator): Weighted average common shares outstanding 4,409 4,350 4,309 Shares used in basic computation 4,409 4,350 4,309 Common shares issuable upon exercise of stock options (treasury stock method) — — — Shares used in diluted computation 4,409 4,350 4,309 Net loss per share: Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders $ (3.00 ) $ (3.59 ) $ (3.42 ) Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders $ 0.00 $ (2.00 ) $ (0.67 ) Basic and diluted net loss per share attributable to Echelon Corporation Stockholders $ (3.00 ) $ (5.59 ) $ (4.09 ) For the years ended December 31, 2015 , 2014 and 2013 , 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, 2015 , 2014 and 2013 was 367,363 , 406,134 and 547,294 , 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 s |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 2. Financial Instruments Financial Assets Measured at Fair Value on a Recurring Basis 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, 2015 (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) $ 2,305 $ 2,305 $ — $ — U.S. government securities (2) 18,379 — 18,379 — Total $ 20,684 $ 2,305 $ 18,379 $ — Liabilities: Contingent consideration $ 318 $ — $ — $ 318 Total $ 318 $ — $ — $ 318 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, 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 (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, 2015 and 2014 . 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, 2015 , 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 two years ended December 31, 2015 (in thousands): Contingent Consideration BALANCE AT DECEMBER 31, 2013 $ — Recorded in conjunction with acquisition of Lumewave, Inc. 925 Adjustment to contingent consideration 43 BALANCE AT DECEMBER 31, 2014 $ 968 Adjustment to contingent consideration $ (650 ) BALANCE AT DECEMBER 31, 2015 $ 318 During the year ended December 31, 2015, the contingent consideration decreased by approximately $650,000 . This decrease was comprised of a $759,000 reduction due to the Company's determination that it was no longer probable that the targets specified in the purchase agreement would be met at a level requiring full payout of the contingent consideration, and to a lesser extent, a reduction in the price of the Company's common stock. Partially offsetting this $759,000 was amortization of interest on the contingent consideration of $109,000 . All of the $43,000 adjustment to the contingent consideration for the year ended December 31, 2014 related to amortization of interest. As of December 31, 2015 , the Company’s available-for-sale securities had contractual maturities from 5 to 12 months and an average remaining term to maturity of 4 months. 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, 2015 . As of December 31, 2015 , 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 $ 16,989 $ 16,978 $ — $ 11 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, 2014 (in thousands): Amortized Cost Aggregate Fair Value Unrealized Holding Gains Unrealized Holding Losses U.S. government securities $ 30,237 $ 30,230 $ — $ 7 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. Non-Financial Assets Measured at Fair Value on a Nonrecurring Basis The majority of the Company's non-financial assets and liabilities, which include goodwill, intangible assets, inventories, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur (or tested at least annually for goodwill) such that a non-financial instrument is required to be evaluated for impairment and an impairment is recorded to reduce the non-financial instrument's carrying value to the fair value as a result of such triggering events, the non-financial assets and liabilities are measured at fair value for the period such triggering events occur. During the years ended December 31, 2015 and 2014, the Company recognized impairments of its goodwill of $5.7 million and $3.4 million , respectively, based on Level 1, Level 2, and Level 3 inputs. See Note 10 - Goodwill and Intangible Assets for a further discussion of these impairments. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant 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, 2015 and 2014 is as follows (in thousands): December 31, 2015 December 31, 2014 Buildings and improvements $ — $ 27,629 Computer and other equipment 3,253 4,046 Software 3,130 3,283 Furniture and fixtures 106 2,205 Leasehold improvements 191 894 6,680 38,057 Less: Accumulated depreciation and amortization (6,085 ) (27,867 ) Property and equipment, net $ 595 $ 10,190 Property and equipment are stated at cost. The cost of buildings and improvements for the Company's former leased San Jose, California headquarters facilities, for which it was the “deemed owner” for accounting purposes only, included 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. For additional information regarding the accounting for the Company's former San Jose headquarters, see 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 former San Jose headquarter 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 required minimum lease payments through March 2020 totaling approximately $48.9 million . Both leases permitted 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 . During the quarter ended June 30, 2015 , the Company terminated the lease agreements for its corporate headquarter facility in San Jose, California. In conjunction with the termination of these leases and associated financing obligations, in May 2015 the Company paid an up-front lease termination charge of $10.0 million , which allowed the Company to remove approximately $15.3 million of building related financing obligations from its balance sheet. At the same time, the Company entered into a short-term lease for one of the two buildings for the remainder of 2015 . As a result of the lease termination, the Company wrote the carrying value of the buildings and leasehold improvements down to its fair value, which was equal to the present value of the remaining lease payments under the short-term lease. The net effect of the lease termination transaction was a charge of $3.3 million during the quarter ended June 30, 2015 . For the years ended December 31, 2015 , 2014 , and 2013 , the Company recorded depreciation expense associated with the former San Jose headquarter building assets of $1.1 million , $1.9 million , and $2.0 million , respectively. As of December 31, 2015 and 2014 , the net book value of the building assets was $0 and $7.7 million , respectively. Under the lease agreements, a portion of the total lease payments was 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 were considered to be payments of principal and interest on the lease financing obligations. For the years ended December 31, 2015 , 2014 , and 2013 , land lease expense was $617,000 , $741,000 , and $741,000 , respectively. For the years ended December 31, 2015 , 2014 , and 2013 , principal reductions on the lease financing obligations were $11.3 million , $2.2 million and $2.0 million , respectively; and interest expense was $387,000 , $1.1 million , and $1.2 million , respectively. 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 and Intangible Assets, 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
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 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. 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. As of December 31, 2015 , and 2014 , the fair value of the contingent consideration was $318,000 and $968,000 , respectively, and is recorded in Other accrued liabilities and Other long-term liabilities, respectively, in the Company's Consolidated Balance Sheet. During the quarter ended December 31, 2015 , the Company determined that it was no longer probable that the targets specified in the purchase agreement would be met at a level requiring a full payout of the contingent consideration. Accordingly, the Company reduced the associated liability to management's best estimate of the fair value as of December 31, 2015 . This resulted in a $577,000 adjustment, which was recorded as a reduction to General and Administrative expenses in the Company's Consolidated Statements of Operations. The remaining change in contingent consideration was due to amortization of interest on the contingent consideration. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
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 also entered into a sub-lease arrangement as well as a supply arrangement for a component of the technology sold to S&T. The supply arrangement has a term of 39 months and the sub-lease agreement concluded during the fourth quarter of 2015 in conjunction with the Company's cancellation of its headquarters facility leases. Both the supply agreement and the sub-lease agreement 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. As of December 31, 2014, the Company was in the process of negotiating the sale of the joint venture's remaining net assets and recorded the assets and liabilities of the joint venture at the lower of their carrying amount or fair value less cost to sell and had classified them as held for sale on the Company's consolidated balance sheets. The remaining asset and liabilities principally relate to inventory, deferred revenues and the related deferred costs of sales, and accrued liabilities. As of December 31, 2015, the Company has determined that the joint venture's remaining net assets will not be sold and have been removed from held for sale. 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 . All of this amount was paid as of September 30, 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. There was no activity related to the Grid business during the year ended December 31, 2015 . 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) $ 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. 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, 2015 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated other comprehensive income (loss) [Text Block] | . Accumulated Other Comprehensive Income (Loss) Foreign currency translation adjustment (Amount in thousands) Unrealized gain (loss) on available-for-sale securities (Amount in thousands) Accumulated Other Comprehensive Income (Loss) (Amount in thousands) Beginning 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 ) Change during the year (1,158 ) (5 ) (1,163 ) Ending balance at December 31, 2015 $ (1,582 ) $ (12 ) $ (1,594 ) |
Stockholders' Equity and Employ
Stockholders' Equity and Employee Stock Option Plans | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity and Employee Stock Option Plans | . Stockholders’ Equity and Employee Stock Option Plans (a) Reverse Stock Split On December 7, 2015 , the Company implemented a 1-for-10 reverse stock split. All share information contained within this report, including the accompanying consolidated financial statements and footnotes, have been retroactively adjusted to reflect the effects of the reverse stock split. (b) Preferred Stock As of December 31, 2015 , the Company was authorized to issue 5,000,000 shares of new $0.01 par value preferred stock, of which none was outstanding. (c) Common Stock As of December 31, 2015 , the Company was authorized to issue 10,000,000 shares of $0.01 par value common stock, of which 4,416,452 were outstanding. (d) 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 2,097,283 shares of its Common Stock were reserved for issuance under the Plan, of which 550,540 shares were subject to outstanding awards and 1,546,743 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 2,097,283 to 1,090,540 , including the 550,540 shares subject to current outstanding awards plus an additional 540,000 shares for future new awards. In determining the size of the share reserve, the Company took into account historical grant practices and the rate of granting equity awards (“burn rate”). As of December 31, 2015 , there were 517,505 shares available for future new awards. 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, 2015 , a total of 867,755 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 5 years from the date of grant. All other options granted generally have a term of 10 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 4 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 4 years, and expire on the 5 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 4 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 5 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, 2015 , 2014 , and 2013 : Options Outstanding Shares Available for Grant Number Outstanding Weighted-Average Exercise Price Per Share BALANCE AT DECEMBER 31, 2012 1,346,758 393,931 $ 60.80 Options granted (178,572 ) 178,572 23.40 RSUs granted (70,266 ) — — Options and stock appreciation rights cancelled 162,019 (162,019 ) 68.90 RSUs cancelled 47,186 — — Unissued shares eliminated from plan (1,554,243 ) — — 1998 Directors Plan shares expired (7,500 ) — — Additional shares reserved 712,203 — — BALANCE AT DECEMBER 31, 2013 457,585 410,484 $ 41.30 Options granted (46,800 ) 46,800 24.60 RSUs granted (219,153 ) — — Options and stock appreciation rights cancelled 197,066 (197,066 ) 47.00 RSUs cancelled 126,519 — — Options exercised — (539 ) 31.70 BALANCE AT DECEMBER 31, 2014 515,217 259,679 $ 34.00 Options granted (112,600 ) 112,600 9.14 RSUs granted (83,555 ) — — Options and stock appreciation rights cancelled 86,743 (86,743 ) 32.38 RSUs cancelled 111,700 — — BALANCE AT DECEMBER 31, 2015 517,505 285,536 $ 24.72 The total intrinsic value of options and SARs exercised during the years ended December 31, 2015 , 2014 , and 2013 , was approximately $0 , $3,000 , and $0 , respectively. During the years ended December 31, 2015 , and 2013 , 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, 2015 , 2014 , and 2013 : Number Nonvested and Outstanding Weighted-Average Grant Date Fair-Value BALANCE AT DECEMBER 31, 2012 192,781 $ 65.60 RSUs and RSAs granted 41,906 23.38 RSUs vested and released (52,199 ) 69.98 RSUs cancelled (45,777 ) 61.99 BALANCE AT DECEMBER 31, 2013 136,711 $ 52.20 RSUs granted 128,945 25.03 RSUs vested and released (50,022 ) 57.84 RSUs cancelled (86,312 ) 36.88 BALANCE AT DECEMBER 31, 2014 129,322 $ 33.15 RSUs granted 49,150 9.03 RSUs vested and released (40,414 ) 35.32 RSUs cancelled (73,344 ) 32.29 BALANCE AT DECEMBER 31, 2015 64,714 $ 14.45 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, 2015 , 2014 , and 2013 was approximately $379,000 , $1.2 million , and $1.2 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, 2015 , the number of RSUs and RSAs outstanding and expected to vest was 59,172 , with a total intrinsic value of $334,000 . 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 $5.64 as of December 31, 2015 , the last market trading day of 2015. The following table provides additional information for significant ranges of outstanding and exercisable stock options and SARs as of December 31, 2015 : Exercise Price Range Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price per Share Aggregate Intrinsic Value $6.90-$9.10 6,500 9.43 $ 8.25 $ — 9.11 89,000 9.45 9.11 — 9.15-22.30 24,400 8.69 15.46 — 22.40 44,000 8.25 22.40 — 23.70 35,960 7.44 23.70 — 24.20-26.50 9,800 7.97 24.92 — 31.70 34,476 6.18 31.70 — 32.50-35.20 12,400 6.00 33.37 — 74.60 25,000 1.63 74.60 — $90.80 4,000 0.39 90.80 — Outstanding 285,536 7.54 $ 24.72 $ — Vested and expected to vest 273,003 7.53 $ 25.10 $ — Exercisable 112,091 5.62 $ 39.15 $ — The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company's closing stock price of $5.64 as of December 31, 2015 , 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, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [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, 2015 , 2014 , and 2013 , was $4.54 , $14.70 , and $13.90 , respectively, and was determined using the following weighted average assumptions: Year ended December 31, 2015 2014 2013 Expected dividend yield —% —% —% Risk-free interest rate 1.7% 2.0% 1.6% Expected volatility 56.3% 66.3% 64.8% Expected term (in years) 5.08 5.98 6.16 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, 2014, and 2015, 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 the years ended December 31, 2015 and 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, 2015 , 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, 2015 , there were no equity compensation awards outstanding that contained financial or other performance-based vesting requirements. As of December 31, 2014 , there were 70,080 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 August 2010 8,000 $ 596 $ — $ 596 April 2015 November 2011 5,000 277 — 277 April 2015 June 2014 57,080 1,404 324 1,080 December 2014 Total 70,080 $ 2,277 $ 324 $ 1,953 Through June 30, 2012, cumulative compensation expense of $264,000 associated with the 13,000 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 . No further compensation expense associated with these awards has been recorded. These awards expired unvested in April 2015. In addition to the awards issued in 2010 and 2011, there were 95,330 non-vested RSAs as of December 31, 2014 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 vested over a nine month period ending March 14, 2015, provided the performance conditions were met as of December 31, 2014 . Of these RSAs issued in June 2014, 30,200 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 , 8,050 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, 2015 , 2014 , and 2013 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, 2015 , total compensation cost related to non-vested stock options and other equity based awards not yet recognized was $977,000 , which is expected to be recognized over the next 1.0 year on a weighted-average basis. The following table summarizes stock-based compensation expense for the years ended December 31, 2015 , 2014 , and 2013 and its allocation within the consolidated statements of operations (in thousands): Year ended 31 December, 2015 2014 2013 Cost of revenues $ (74 ) $ 292 $ 198 Product development 304 (73 ) 156 Sales and marketing (92 ) 206 84 General and administrative 155 1,114 967 Discontinued operations — (342 ) 1,133 Total stock based compensation expense related to stock options and share awards 293 1,197 2,538 Tax benefit — — — Stock-based compensation expense related to stock options and share awards, net of tax $ 293 $ 1,197 $ 2,538 As of December 31, 2015 , approximately $5,000 and $1,000 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, 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. |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 2014 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, 2015 , 2014 and 2013 the percentage of the Company’s revenues attributable to sales made to these customers was as follows: Year ended December 31, 2015 2014 2013 Avnet 24.5% 26.2% 26.6% Enel 12.7% 7.7% 16.1% Total 37.2% 33.9% 42.7% 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 May 2016. We do not expect additional shipments to Enel in 2016 apart from those currently scheduled for the quarter ending March 31, 2016. As such, we expect our revenues from Enel will decrease significantly in 2016 as compared to 2015. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 10. Goodwill and Intangible Assets Goodwill The carrying amount of goodwill as of December 31, 2015 , 2014 , and 2013 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, 2015 and 2014 are as follows (in thousands): Total 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 Unrealized foreign currency translation loss (238 ) Goodwill impairment (5,698 ) Balance as of December 31, 2015 $ — 2014 Goodwill Impairment - 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 had no goodwill remaining related to the Grid business, with the entire remaining goodwill balance of $5.9 million at December 31, 2104, being attributable to the IIoT reporting unit. 2015 Goodwill Impairment - During the quarter ended December 31, 2015, the Company concluded there were indicators of a potential goodwill impairment, resulting primarily from a continued decline in the Company's stock price and other market indicators, as well as a change in the Company's forecast for certain revenue streams. As a result of these indicators of impairment, the Company performed an impairment test of goodwill as of December 31, 2015. As a result of the sale of the Grid business, the Company operates as one reporting unit. In performing Step 1 of the impairment test, the Company estimated the fair value of the reporting unit using a combination of approaches, including, among others, the income approach and the market approach. We calculated the fair value for the Company by using a weighted average of the various approaches, with significantly higher weight placed on the market approach. Based on this analysis, it was determined that the carrying value of the 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 $5.7 million , which was recognized during the three months ended December 31, 2015. As a result, the Company no longer has has any goodwill remaining on its balance sheet as of December 31, 2015. Identifiable Intangible Assets The Company's identifiable intangible assets as of December 31, 2015 , relate 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 years ended December 31, 2015 and 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 Amortization $ (230 ) Balance as of December 31, 2015 $ 1,183 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, 2015 (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 $ 169 $ 631 5.13 Customer relationships 500 106 394 5.13 Trade names 200 42 158 5.13 Total $ 1,500 $ 317 $ 1,183 5.13 The following table presents the amortization of finite-lived intangible assets included in the Consolidated Statements of Operations for the years ended December 31, 2015 and 2014 (in thousands): Year ended December 31, 2015 2014 Cost of revenues $ 123 $ 46 Operating expenses 107 41 Total $ 230 $ 87 The following table presents the estimated future amortization of finite-lived intangible assets as of December 31, 2015 (in thousands): Estimated Future Amoritization 2016 $ 230 2017 229 2018 229 2019 229 2020 and thereafter 266 Total $ 1,183 |
Goodwill Disclosure [Text Block] | The following table presents the estimated future amortization of finite-lived intangible assets as of December 31, 2015 (in thousands): Estimated Future Amoritization 2016 $ 230 2017 229 2018 229 2019 229 2020 and thereafter 266 Total $ 1,183 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | . Commitments and Contingencies (a) Lease Commitments The Company leases facilities under operating leases for its personnel located within the United States and in several foreign countries throughout Europe and Asia. These operating leases expire on various dates through 2019 , 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, 2015 , future minimum lease payments under all operating leases were as follows (in thousands): 2016 $ 835 2017 917 2018 818 2019 397 Total payments $ 2,967 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, 2015 , the Company has accrued approximately $112,000 of deferred rent related to these agreements, of which approximately $15,000 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, 2014 , the Company had accrued approximately $180,000 of deferred rent related to its lease 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 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, 2015 , the sublease was cancelled in conjunction with the Company's termination of its main headquarters leases as discussed in Note 3. The components of net rent expense for all operating leases for the years ended December 31, 2015 , 2014 , and 2013 , were as follows (in thousands): Year ended 31 December 2015 2014 2013 Rent expense $ 1,260 $ 1,483 $ 1,527 Sublease rentals (685 ) (202 ) — Rent expense included in discontinued operations — (160 ) (145 ) Rent expense, net $ 575 $ 1,121 $ 1,382 (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 $390,000 , $500,000 , and $418,000 for the years ended December 31, 2015 , 2014 , and 2013 , 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, 2015 , 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 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, 2015 , 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 underlying credit agreement. No amounts have ever been drawn against the standby letters of credit issued by the bank. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Domestic $ (11,932 ) $ (15,592 ) $ (14,358 ) Foreign (1,251 ) 192 (70 ) $ (13,183 ) $ (15,400 ) $ (14,428 ) 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, 2015 2014 2013 Federal: Current $ — $ — $ — Deferred — — — Total federal provision — — — State: Current 20 16 17 Deferred — — — Total state provision 20 16 17 Foreign: Current 30 195 294 Deferred — — — Total foreign provision 30 195 294 Total income tax expense $ 50 $ 211 $ 311 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, 2015 2014 2013 Federal tax at statutory rate of 35% $ (4,615 ) $ (5,390 ) $ (5,050 ) State taxes, net of federal benefit (634 ) (577 ) 17 U.S.-Foreign rate differential 480 100 342 Change in Valuation Allowance 3,072 4,115 5,862 Research and Development credits 175 357 (1,241 ) Permanent items 1,566 1,560 406 Others 6 46 (25 ) Total income tax expense $ 50 $ 211 $ 311 As of December 31, 2015 and 2014 , a valuation allowance has been recorded against 100% of the net deferred tax asset. A valuation allowance is recognized if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realizable in a particular tax jurisdiction. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a deferred tax asset. The Company determined that it is more likely than not that it will not realize a benefit from its United States deferred tax assets based on historical cumulative losses incurred in the United States. Therefore, a valuation allowance has been maintained on all deferred tax assets. The components of the net deferred income tax asset are as follows (in thousands): Year ended December 31, 2015 2014 Deferred tax assets: Net operating loss carry forwards $ 83,522 $ 72,058 Tax credit carry forwards 18,940 26,571 Fixed and intangible assets 868 6,424 Capitalized research and development costs 58 58 Stock based compensation and other reserves and allowances 3,828 15,535 Gross deferred income tax assets 107,216 120,646 Valuation allowance (107,216 ) (120,646 ) Net deferred income tax assets $ — $ — As of December 31, 2015 , 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 carry forwards 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 carry forwards to be limited in future periods. In general, a corporation that undergoes an "ownership change" under Section 382 of the Internal Revenue Code is subject to limitations on its ability to utilize its pre-change net operating loss carry forwards (NOLs) to offset future taxable income and its ability to utilize tax credit carry forwards. As of December 31, 2015 , the Company had net operating loss carry forwards of $253.2 million for federal income tax reporting purposes and $126.1 million for state income tax reporting purposes, which expire at various dates through 2035 . In addition, as of December 31, 2015 , the Company had approximately $11.0 million and $15.9 million of tax credit carry forwards for increased research expenditures for federal and California purposes, respectively. The federal research tax credits will expire at various dates if not utilized by 2035 and the state tax credit can be carried over indefinitely. In accordance with current Internal Revenue Code rules, federal net operating loss carry forwards 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 carry forwards, 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 $12.1 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 unrecognized tax benefits related to uncertain tax positions for the years ended December 31, 2015 and 2014 (in thousands): Year ended December 31, 2015 2014 Balance as of the beginning of the year $ 1,359 $ 2,138 Tax positions related to current year: Additions 147 76 Reductions (18 ) (48 ) Tax positions related to prior years: Additions 7,991 — Reductions (28 ) (232 ) Settlements — — Lapses in statute of limitations (385 ) (575 ) Balance as of the end of the year $ 9,066 $ 1,359 Included in the balance of total unrecognized tax benefits at December 31, 2015 are potential benefits of $409,000 , which if recognized, would affect the effective rate on income from continuing operations. On December 31, 2015 , the Company had accrued interest and penalties related to the uncertain tax benefits of approximately $74,000 . During 2015 , the Company decreased the prior year balance by $25,000 due to lapses in statutes of limitations. During 2014 and 2013 , the Company decreased the prior year balance by $35,000 and $6,000 , respectively, due to foreign currency fluctuations, 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 1996 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. Other Tax Disclosures Federal research tax credit - On December 18, 2015, The Consolidated Appropriations Act of 2014 was signed into law, which retroactively reinstated and made permanent the federal research tax credit provisions from January 1, 2015 through December 31, 2015. |
Warranty Reserves
Warranty Reserves | 12 Months Ended |
Dec. 31, 2015 | |
Warranty Reserves [Abstract] | |
Warranty Reserves | 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 $120,000 as of December 31, 2015 and $143,000 as of December 31, 2014 . |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
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 300,000 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 300,000 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 L ON W ORKS 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 2015, although delivery of products can extend beyond then and the agreement may be extended under certain circumstances. For the years ended December 31, 2015 , 2014 , and 2013, the Company recognized revenue from products and services sold to Enel and its designated manufacturers of approximately $ 4.9 million , $ 3.0 million , and $7.4 million , respectively. As of December 31, 2015 and 2014 , $827,000 and $158,000 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, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 15. Restructuring On February 12, 2013, the Company undertook 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 December 31, 2013 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 2015 (in thousands): December 31, 2014 Costs Incurred Cash Payments December 31, 2015 Termination benefits 701 — 701 — The following table sets forth a summary of restructuring activities related to the 2014 restructuring program in 2014 (in thousands): December 31, 2013 Costs Incurred Cash Payments December 31, 2014 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 . |
Valuation and Qualifying accoun
Valuation and Qualifying accounts | 12 Months Ended |
Dec. 31, 2014 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 16. Valuation and Qualifying Accounts (in thousands) Balance at Beginning of Period Charged/ (Credited) to Revenues and Expenses Write-Off of Previously Provided Accounts Balance at End of Period Year Ended December 31, 2015: Allowance for Doubtful Accounts $ 57 $ (19 ) $ 7 $ 31 Allowance for Customer Returns and Sales Credits $ 401 $ 3,442 $ 3,353 $ 490 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 |
Segment Disclosure
Segment Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
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 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 L ON W ORKS 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 L ON W ORKS ®, 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, 2015 and December 31, 2014 , long-lived assets of approximately $2.6 million and $15.6 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, 2015 , 2014 and 2013 is as follows (in thousands): Year ended December 31, 2015 2014 2013 Americas United States $ 11,138 $ 10,680 $ 11,787 Other Americas 1,242 2,074 1,380 Total Americas 12,380 12,754 13,167 EMEA Germany 9,987 10,733 12,789 Other EMEA 7,812 3,761 7,105 Total EMEA 17,799 14,494 19,894 APJ China $ 2,436 $ 3,225 $ 5,286 Other APJ $ 6,189 $ 8,257 $ 7,510 Total APJ $ 8,625 $ 11,482 $ 12,796 Total $ 38,804 $ 38,730 $ 45,857 For information regarding the Company’s major customers, please refer to Note 9, Significant Customers. |
Joint Venture
Joint Venture | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 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, 2015 and 2014 . Net loss attributable to the noncontrolling interest in Echelon-Holley was $0 , $535,000 , and $808,000 during years ended December 31, 2015 , 2014 , and 2013 , respectively. As of December 31, 2015 , 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 undertook a process to sell the remaining net assets of the joint venture and recorded the net assets and liabilities of the joint venture at the lower of their carrying amount or fair value less cost to sell, and classified them as held for sale on the accompanying balance sheet at December 31, 2014 . The major classes of assets and liabilities that were classified as held for sale were 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 . During the quarter ended September 30, 2015, the Company concluded that it would no longer pursue a sale, but would instead work with Holley Metering to shut the joint venture down. The remaining net assets of the joint venture were immaterial as of September 30, 2015. As the net losses attributable to the joint venture were immaterial in all years, they have been presented as part of discontinued operations in the consolidated statements of operations for the years ended December 31, 2014 and 2013 . |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 and 2014 . 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 December 2015 September 2015 June March December 2014 September 2014 June March Consolidated Statement of Operations Data: Revenues $ 9,590 $ 9,983 $ 9,363 $ 9,868 $ 9,647 $ 9,178 $ 8,981 $ 10,924 Cost of revenues 4,093 4,370 3,821 4,244 4,316 4,180 3,784 4,538 Gross profit 5,497 5,613 5,542 5,624 5,331 4,998 5,197 6,386 Operating expenses: Product development 2,341 2,454 2,340 2,612 2,286 2,305 2,170 2,749 Sales and marketing 1,602 1,848 2,194 2,188 2,498 2,160 2,265 2,175 General and administrative 1,694 2,547 2,187 2,821 2,847 3,538 3,579 3,770 Goodwill impairment 5,698 — — — — — — — Lease termination charges — — 3,337 — — — — — Loss on write down of property, equipment and other — — — — — 4,409 — — Restructuring charges — — — — 164 227 — — Total operating expenses 11,335 6,849 10,058 7,621 7,795 12,639 8,014 8,694 Loss from continuing operations (5,838 ) (1,236 ) (4,516 ) (1,997 ) (2,464 ) (7,641 ) (2,817 ) (2,308 ) Interest and other income (expense), net 227 184 (458 ) 838 269 719 (69 ) 11 Interest expense on lease financing obligations (2 ) (5 ) (128 ) (252 ) (261 ) (271 ) (280 ) (288 ) Loss from continuing operations before provision for income taxes (5,613 ) (1,057 ) (5,102 ) (1,411 ) (2,456 ) (7,193 ) (3,166 ) (2,585 ) Income tax expense (benefit) (14 ) (10 ) 61 13 97 33 106 (25 ) Net loss from continuing operations attributable to Echelon Corporation Stockholders (5,599 ) (1,047 ) (5,163 ) (1,424 ) (2,553 ) (7,226 ) (3,272 ) (2,560 ) Net loss from discontinued operations, net of income taxes — — — — — (2,141 ) (5,579 ) (1,530 ) Net loss from discontinued operations attributable to non-controlling interest, net of income taxes — — — — — 179 239 117 Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes — — — — — (1,962 ) (5,340 ) (1,413 ) Net loss attributable to Echelon Corporation stockholders $ (5,599 ) $ (1,047 ) $ (5,163 ) $ (1,424 ) $ (2,553 ) $ (9,188 ) $ (8,612 ) $ (3,973 ) Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders $ (1.27 ) $ (0.24 ) $ (1.17 ) $ (0.32 ) $ (0.58 ) $ (1.66 ) $ (0.76 ) $ (0.59 ) Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders $ — $ — $ — $ — $ — $ (0.45 ) $ (1.23 ) $ (0.33 ) Basic and diluted net loss per share attributable to Echelon Corporation Stockholders $ (1.27 ) $ (0.24 ) $ (1.17 ) $ (0.32 ) $ (0.58 ) $ (2.11 ) $ (1.99 ) $ (0.92 ) Shares used in net loss per share calculation: Basic 4,416 4,413 4,406 4,395 4,390 4,351 4,333 4,326 Diluted 4,416 4,413 4,406 4,395 4,390 4,351 4,333 4,326 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
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, 2015, 2014, and 2013 are now classified as discontinued operations. 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. • The Company's sales are currently concentrated with a relatively small group of customers, as approximately 37.2% of net revenue for the year ended December 31, 2015 was 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, goodwill 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 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. In July 2015, the FASB deferred the effective date of ASU 2014-09 so that it will apply to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early application is permitted to the original effective date of December 15, 2016, in which case ASU 2014-09 would apply to annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). 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. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, related to balance sheet classification of deferred taxes. The ASU requires that deferred tax assets and liabilities be classified as noncurrent in the statement of financial position, thereby simplifying the current guidance that requires an entity to separate deferred assets and liabilities into current and noncurrent amounts. The ASU will be effective for us beginning in the first quarter of fiscal year 2018 though early adoption is permitted. We have early-adopted the ASU as of December 31, 2015 and due to the valuation allowance this adoption did not have a significant impact on our financial statements. No prior periods were retrospectively adjusted. In July 2015, the FASB issued an update to ASC 330, Inventory: Simplifying the Measurement of Inventory . Under this update, subsequent measurement of inventory is based on the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and disposal. This update does not apply to inventory that is measured using last-in, first-out or the retail inventory method. This update should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2017. Early adoption is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires, among other things, the recognition of lease assets and lease liabilities on the balance sheet by lessees for certain leases classified as operating leases under previous GAAP. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method with early adoption permitted. The Company is currently evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. |
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. Therefore, multiple element arrangements are now limited. 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, 2015 , 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, 2015 , 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, 2015 . |
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. |
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 years ended December 31, 2015 and 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 both the years ended December 31, 2015 and 2014 , the Company recognized impairments of its goodwill, which are described in more detail in Note 10. The Company recognized no impairment of goodwill during the year ended December 31, 2013 . |
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, 2015 , 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, Accrued payroll and related costs $ 2,119 $ 1,463 Warranty reserve 120 143 Contingent consideration 318 — Restructuring charges — 701 Other accrued liabilities 328 537 $ 2,885 $ 2,844 |
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 have historically consisted 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, 2015 and 2014 , 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, 2015 2014 Enel Distribuzione Spa 18.2% 3.6% Avnet Europe Comm VA 12.9% 24.0% Total 31.1% 27.6% 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, 2015 , 2014 and 2013 (in thousands, except per share amounts): Year ended December 31, 2015 2014 2013 Net loss (Numerator): Net loss from continuing operations attributable to Echelon Corporation Stockholders $ (13,233 ) $ (15,611 ) $ (14,739 ) Net loss from discontinued operations attributable to Echelon Corporation Stockholders — (8,715 ) (2,871 ) Net loss attributable to Echelon Corporation Stockholders $ (13,233 ) $ (24,326 ) $ (17,610 ) Shares (Denominator): Weighted average common shares outstanding 4,409 4,350 4,309 Shares used in basic computation 4,409 4,350 4,309 Common shares issuable upon exercise of stock options (treasury stock method) — — — Shares used in diluted computation 4,409 4,350 4,309 Net loss per share: Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders $ (3.00 ) $ (3.59 ) $ (3.42 ) Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders $ 0.00 $ (2.00 ) $ (0.67 ) Basic and diluted net loss per share attributable to Echelon Corporation Stockholders $ (3.00 ) $ (5.59 ) $ (4.09 ) For the years ended December 31, 2015 , 2014 and 2013 , 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, 2015 , 2014 and 2013 was 367,363 , 406,134 and 547,294 , 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 Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following (in thousands): December 31, December 31, Purchased materials $ 164 $ 402 Finished goods 2,729 2,841 $ 2,893 $ 3,243 |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consist of the following (in thousands): December 31, December 31, Accrued payroll and related costs $ 2,119 $ 1,463 Warranty reserve 120 143 Contingent consideration 318 — Restructuring charges — 701 Other accrued liabilities 328 537 $ 2,885 $ 2,844 |
Significant Accounts Receivable [Table Text Block] | As of December 31, 2015 and 2014 , 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, 2015 2014 Enel Distribuzione Spa 18.2% 3.6% Avnet Europe Comm VA 12.9% 24.0% Total 31.1% 27.6% |
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, 2015 , 2014 and 2013 (in thousands, except per share amounts): Year ended December 31, 2015 2014 2013 Net loss (Numerator): Net loss from continuing operations attributable to Echelon Corporation Stockholders $ (13,233 ) $ (15,611 ) $ (14,739 ) Net loss from discontinued operations attributable to Echelon Corporation Stockholders — (8,715 ) (2,871 ) Net loss attributable to Echelon Corporation Stockholders $ (13,233 ) $ (24,326 ) $ (17,610 ) Shares (Denominator): Weighted average common shares outstanding 4,409 4,350 4,309 Shares used in basic computation 4,409 4,350 4,309 Common shares issuable upon exercise of stock options (treasury stock method) — — — Shares used in diluted computation 4,409 4,350 4,309 Net loss per share: Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders $ (3.00 ) $ (3.59 ) $ (3.42 ) Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders $ 0.00 $ (2.00 ) $ (0.67 ) Basic and diluted net loss per share attributable to Echelon Corporation Stockholders $ (3.00 ) $ (5.59 ) $ (4.09 ) For the years ended December 31, 2015 , 2014 and 2013 , 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, 2015 , 2014 and 2013 was 367,363 , 406,134 and 547,294 , respectively. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of asset measured on a recurring basis | 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, 2015 (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) $ 2,305 $ 2,305 $ — $ — U.S. government securities (2) 18,379 — 18,379 — Total $ 20,684 $ 2,305 $ 18,379 $ — Liabilities: Contingent consideration $ 318 $ — $ — $ 318 Total $ 318 $ — $ — $ 318 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, 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 (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 |
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 two years ended December 31, 2015 (in thousands): Contingent Consideration BALANCE AT DECEMBER 31, 2013 $ — Recorded in conjunction with acquisition of Lumewave, Inc. 925 Adjustment to contingent consideration 43 BALANCE AT DECEMBER 31, 2014 $ 968 Adjustment to contingent consideration $ (650 ) BALANCE AT DECEMBER 31, 2015 $ 318 |
Fair value of short term investment unrealized holdings and gains | As of December 31, 2015 , the Company’s available-for-sale securities had contractual maturities from 5 to 12 months and an average remaining term to maturity of 4 months. 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, 2015 . As of December 31, 2015 , 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 $ 16,989 $ 16,978 $ — $ 11 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, 2014 (in thousands): Amortized Cost Aggregate Fair Value Unrealized Holding Gains Unrealized Holding Losses U.S. government securities $ 30,237 $ 30,230 $ — $ 7 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | A summary of property and equipment, net as of December 31, 2015 and 2014 is as follows (in thousands): December 31, 2015 December 31, 2014 Buildings and improvements $ — $ 27,629 Computer and other equipment 3,253 4,046 Software 3,130 3,283 Furniture and fixtures 106 2,205 Leasehold improvements 191 894 6,680 38,057 Less: Accumulated depreciation and amortization (6,085 ) (27,867 ) Property and equipment, net $ 595 $ 10,190 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 | |
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) $ 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 Comprehensi34
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign currency translation adjustment (Amount in thousands) Unrealized gain (loss) on available-for-sale securities (Amount in thousands) Accumulated Other Comprehensive Income (Loss) (Amount in thousands) Beginning 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 ) Change during the year (1,158 ) (5 ) (1,163 ) Ending balance at December 31, 2015 $ (1,582 ) $ (12 ) $ (1,594 ) |
Stockholders' Equity and Empl35
Stockholders' Equity and Employee Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [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, 2015 , 2014 , and 2013 : Options Outstanding Shares Available for Grant Number Outstanding Weighted-Average Exercise Price Per Share BALANCE AT DECEMBER 31, 2012 1,346,758 393,931 $ 60.80 Options granted (178,572 ) 178,572 23.40 RSUs granted (70,266 ) — — Options and stock appreciation rights cancelled 162,019 (162,019 ) 68.90 RSUs cancelled 47,186 — — Unissued shares eliminated from plan (1,554,243 ) — — 1998 Directors Plan shares expired (7,500 ) — — Additional shares reserved 712,203 — — BALANCE AT DECEMBER 31, 2013 457,585 410,484 $ 41.30 Options granted (46,800 ) 46,800 24.60 RSUs granted (219,153 ) — — Options and stock appreciation rights cancelled 197,066 (197,066 ) 47.00 RSUs cancelled 126,519 — — Options exercised — (539 ) 31.70 BALANCE AT DECEMBER 31, 2014 515,217 259,679 $ 34.00 Options granted (112,600 ) 112,600 9.14 RSUs granted (83,555 ) — — Options and stock appreciation rights cancelled 86,743 (86,743 ) 32.38 RSUs cancelled 111,700 — — BALANCE AT DECEMBER 31, 2015 517,505 285,536 $ 24.72 The total intrinsic value of options and SARs exercised during the years ended December 31, 2015 , 2014 , and 2013 , was approximately $0 , $3,000 , and $0 , respectively. During the years ended December 31, 2015 , and 2013 , 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. |
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, 2015 , 2014 , and 2013 : Number Nonvested and Outstanding Weighted-Average Grant Date Fair-Value BALANCE AT DECEMBER 31, 2012 192,781 $ 65.60 RSUs and RSAs granted 41,906 23.38 RSUs vested and released (52,199 ) 69.98 RSUs cancelled (45,777 ) 61.99 BALANCE AT DECEMBER 31, 2013 136,711 $ 52.20 RSUs granted 128,945 25.03 RSUs vested and released (50,022 ) 57.84 RSUs cancelled (86,312 ) 36.88 BALANCE AT DECEMBER 31, 2014 129,322 $ 33.15 RSUs granted 49,150 9.03 RSUs vested and released (40,414 ) 35.32 RSUs cancelled (73,344 ) 32.29 BALANCE AT DECEMBER 31, 2015 64,714 $ 14.45 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, 2015 , 2014 , and 2013 was approximately $379,000 , $1.2 million , and $1.2 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, 2015 , the number of RSUs and RSAs outstanding and expected to vest was 59,172 , with a total intrinsic value of $334,000 . 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 $5.64 as of December 31, 2015 , the last market trading day of 2015. |
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, 2015 : Exercise Price Range Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price per Share Aggregate Intrinsic Value $6.90-$9.10 6,500 9.43 $ 8.25 $ — 9.11 89,000 9.45 9.11 — 9.15-22.30 24,400 8.69 15.46 — 22.40 44,000 8.25 22.40 — 23.70 35,960 7.44 23.70 — 24.20-26.50 9,800 7.97 24.92 — 31.70 34,476 6.18 31.70 — 32.50-35.20 12,400 6.00 33.37 — 74.60 25,000 1.63 74.60 — $90.80 4,000 0.39 90.80 — Outstanding 285,536 7.54 $ 24.72 $ — Vested and expected to vest 273,003 7.53 $ 25.10 $ — Exercisable 112,091 5.62 $ 39.15 $ — |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [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, 2015 , 2014 , and 2013 , was $4.54 , $14.70 , and $13.90 , respectively, and was determined using the following weighted average assumptions: Year ended December 31, 2015 2014 2013 Expected dividend yield —% —% —% Risk-free interest rate 1.7% 2.0% 1.6% Expected volatility 56.3% 66.3% 64.8% Expected term (in years) 5.08 5.98 6.16 |
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 August 2010 8,000 $ 596 $ — $ 596 April 2015 November 2011 5,000 277 — 277 April 2015 June 2014 57,080 1,404 324 1,080 December 2014 Total 70,080 $ 2,277 $ 324 $ 1,953 Through June 30, 2012, cumulative compensation expense of $264,000 associated with the 13,000 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 . No further compensation expense associated with these awards has been recorded. These awards expired unvested in April 2015. In addition to the awards issued in 2010 and 2011, there were 95,330 non-vested RSAs as of December 31, 2014 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 vested over a nine month period ending March 14, 2015, provided the performance conditions were met as of December 31, 2014 . Of these RSAs issued in June 2014, 30,200 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 , 8,050 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, 2015 , total compensation cost related to non-vested stock options and other equity based awards not yet recognized was $977,000 , which is expected to be recognized over the next 1.0 year on a weighted-average basis. The following table summarizes stock-based compensation expense for the years ended December 31, 2015 , 2014 , and 2013 and its allocation within the consolidated statements of operations (in thousands): Year ended 31 December, 2015 2014 2013 Cost of revenues $ (74 ) $ 292 $ 198 Product development 304 (73 ) 156 Sales and marketing (92 ) 206 84 General and administrative 155 1,114 967 Discontinued operations — (342 ) 1,133 Total stock based compensation expense related to stock options and share awards 293 1,197 2,538 Tax benefit — — — Stock-based compensation expense related to stock options and share awards, net of tax $ 293 $ 1,197 $ 2,538 As of December 31, 2015 , approximately $5,000 and $1,000 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, 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. |
Significant Customers (Tables)
Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Revenues attributable to sales to major customers | For the years ended December 31, 2015 , 2014 and 2013 the percentage of the Company’s revenues attributable to sales made to these customers was as follows: Year ended December 31, 2015 2014 2013 Avnet 24.5% 26.2% 26.6% Enel 12.7% 7.7% 16.1% Total 37.2% 33.9% 42.7% |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The changes in the carrying amount of identifiable intangible assets, net for the years ended December 31, 2015 and 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 Amortization $ (230 ) Balance as of December 31, 2015 $ 1,183 |
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, 2015 (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 $ 169 $ 631 5.13 Customer relationships 500 106 394 5.13 Trade names 200 42 158 5.13 Total $ 1,500 $ 317 $ 1,183 5.13 |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill, net, for the years ended December 31, 2015 and 2014 are as follows (in thousands): Total 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 Unrealized foreign currency translation loss (238 ) Goodwill impairment (5,698 ) Balance as of December 31, 2015 $ — |
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 years ended December 31, 2015 and 2014 (in thousands): Year ended December 31, 2015 2014 Cost of revenues $ 123 $ 46 Operating expenses 107 41 Total $ 230 $ 87 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases of Lessee Disclosure [Table Text Block] | As of December 31, 2015 , future minimum lease payments under all operating leases were as follows (in thousands): 2016 $ 835 2017 917 2018 818 2019 397 Total payments $ 2,967 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, 2015 , the Company has accrued approximately $112,000 of deferred rent related to these agreements, of which approximately $15,000 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, 2014 , the Company had accrued approximately $180,000 of deferred rent related to its lease 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 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, 2015 , the sublease was cancelled in conjunction with the Company's termination of its main headquarters leases as discussed in Note 3. The components of net rent expense for all operating leases for the years ended December 31, 2015 , 2014 , and 2013 , were as follows (in thousands): Year ended 31 December 2015 2014 2013 Rent expense $ 1,260 $ 1,483 $ 1,527 Sublease rentals (685 ) (202 ) — Rent expense included in discontinued operations — (160 ) (145 ) Rent expense, net $ 575 $ 1,121 $ 1,382 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Domestic $ (11,932 ) $ (15,592 ) $ (14,358 ) Foreign (1,251 ) 192 (70 ) $ (13,183 ) $ (15,400 ) $ (14,428 ) |
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, 2015 2014 2013 Federal: Current $ — $ — $ — Deferred — — — Total federal provision — — — State: Current 20 16 17 Deferred — — — Total state provision 20 16 17 Foreign: Current 30 195 294 Deferred — — — Total foreign provision 30 195 294 Total income tax expense $ 50 $ 211 $ 311 |
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, 2015 2014 2013 Federal tax at statutory rate of 35% $ (4,615 ) $ (5,390 ) $ (5,050 ) State taxes, net of federal benefit (634 ) (577 ) 17 U.S.-Foreign rate differential 480 100 342 Change in Valuation Allowance 3,072 4,115 5,862 Research and Development credits 175 357 (1,241 ) Permanent items 1,566 1,560 406 Others 6 46 (25 ) Total income tax expense $ 50 $ 211 $ 311 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of December 31, 2015 and 2014 , a valuation allowance has been recorded against 100% of the net deferred tax asset. A valuation allowance is recognized if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realizable in a particular tax jurisdiction. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a deferred tax asset. The Company determined that it is more likely than not that it will not realize a benefit from its United States deferred tax assets based on historical cumulative losses incurred in the United States. Therefore, a valuation allowance has been maintained on all deferred tax assets. The components of the net deferred income tax asset are as follows (in thousands): Year ended December 31, 2015 2014 Deferred tax assets: Net operating loss carry forwards $ 83,522 $ 72,058 Tax credit carry forwards 18,940 26,571 Fixed and intangible assets 868 6,424 Capitalized research and development costs 58 58 Stock based compensation and other reserves and allowances 3,828 15,535 Gross deferred income tax assets 107,216 120,646 Valuation allowance (107,216 ) (120,646 ) Net deferred income tax assets $ — $ — |
Summary of Income Tax Contingencies [Table Text Block] | The following is a rollforward of the Company's unrecognized tax benefits related to uncertain tax positions for the years ended December 31, 2015 and 2014 (in thousands): Year ended December 31, 2015 2014 Balance as of the beginning of the year $ 1,359 $ 2,138 Tax positions related to current year: Additions 147 76 Reductions (18 ) (48 ) Tax positions related to prior years: Additions 7,991 — Reductions (28 ) (232 ) Settlements — — Lapses in statute of limitations (385 ) (575 ) Balance as of the end of the year $ 9,066 $ 1,359 Included in the balance of total unrecognized tax benefits at December 31, 2015 are potential benefits of $409,000 , which if recognized, would affect the effective rate on income from continuing operations. On December 31, 2015 , the Company had accrued interest and penalties related to the uncertain tax benefits of approximately $74,000 . During 2015 , the Company decreased the prior year balance by $25,000 due to lapses in statutes of limitations. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2013 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 2015 (in thousands): December 31, 2014 Costs Incurred Cash Payments December 31, 2015 Termination benefits 701 — 701 — The following table sets forth a summary of restructuring activities related to the 2014 restructuring program in 2014 (in thousands): December 31, 2013 Costs Incurred Cash Payments December 31, 2014 Termination benefits — 1,841 1,140 701 |
Valuation and Qualifying acco42
Valuation and Qualifying accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule Of Valuation And Qualifying Accounts [Table Text Block] | Balance at Beginning of Period Charged/ (Credited) to Revenues and Expenses Write-Off of Previously Provided Accounts Balance at End of Period Year Ended December 31, 2015: Allowance for Doubtful Accounts $ 57 $ (19 ) $ 7 $ 31 Allowance for Customer Returns and Sales Credits $ 401 $ 3,442 $ 3,353 $ 490 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 |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Revenue information by geography | Summary revenue information by geography for the years ended December 31, 2015 , 2014 and 2013 is as follows (in thousands): Year ended December 31, 2015 2014 2013 Americas United States $ 11,138 $ 10,680 $ 11,787 Other Americas 1,242 2,074 1,380 Total Americas 12,380 12,754 13,167 EMEA Germany 9,987 10,733 12,789 Other EMEA 7,812 3,761 7,105 Total EMEA 17,799 14,494 19,894 APJ China $ 2,436 $ 3,225 $ 5,286 Other APJ $ 6,189 $ 8,257 $ 7,510 Total APJ $ 8,625 $ 11,482 $ 12,796 Total $ 38,804 $ 38,730 $ 45,857 |
Selected Quarterly Financial 44
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 and 2014 . 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 December 2015 September 2015 June March December 2014 September 2014 June March Consolidated Statement of Operations Data: Revenues $ 9,590 $ 9,983 $ 9,363 $ 9,868 $ 9,647 $ 9,178 $ 8,981 $ 10,924 Cost of revenues 4,093 4,370 3,821 4,244 4,316 4,180 3,784 4,538 Gross profit 5,497 5,613 5,542 5,624 5,331 4,998 5,197 6,386 Operating expenses: Product development 2,341 2,454 2,340 2,612 2,286 2,305 2,170 2,749 Sales and marketing 1,602 1,848 2,194 2,188 2,498 2,160 2,265 2,175 General and administrative 1,694 2,547 2,187 2,821 2,847 3,538 3,579 3,770 Goodwill impairment 5,698 — — — — — — — Lease termination charges — — 3,337 — — — — — Loss on write down of property, equipment and other — — — — — 4,409 — — Restructuring charges — — — — 164 227 — — Total operating expenses 11,335 6,849 10,058 7,621 7,795 12,639 8,014 8,694 Loss from continuing operations (5,838 ) (1,236 ) (4,516 ) (1,997 ) (2,464 ) (7,641 ) (2,817 ) (2,308 ) Interest and other income (expense), net 227 184 (458 ) 838 269 719 (69 ) 11 Interest expense on lease financing obligations (2 ) (5 ) (128 ) (252 ) (261 ) (271 ) (280 ) (288 ) Loss from continuing operations before provision for income taxes (5,613 ) (1,057 ) (5,102 ) (1,411 ) (2,456 ) (7,193 ) (3,166 ) (2,585 ) Income tax expense (benefit) (14 ) (10 ) 61 13 97 33 106 (25 ) Net loss from continuing operations attributable to Echelon Corporation Stockholders (5,599 ) (1,047 ) (5,163 ) (1,424 ) (2,553 ) (7,226 ) (3,272 ) (2,560 ) Net loss from discontinued operations, net of income taxes — — — — — (2,141 ) (5,579 ) (1,530 ) Net loss from discontinued operations attributable to non-controlling interest, net of income taxes — — — — — 179 239 117 Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes — — — — — (1,962 ) (5,340 ) (1,413 ) Net loss attributable to Echelon Corporation stockholders $ (5,599 ) $ (1,047 ) $ (5,163 ) $ (1,424 ) $ (2,553 ) $ (9,188 ) $ (8,612 ) $ (3,973 ) Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders $ (1.27 ) $ (0.24 ) $ (1.17 ) $ (0.32 ) $ (0.58 ) $ (1.66 ) $ (0.76 ) $ (0.59 ) Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders $ — $ — $ — $ — $ — $ (0.45 ) $ (1.23 ) $ (0.33 ) Basic and diluted net loss per share attributable to Echelon Corporation Stockholders $ (1.27 ) $ (0.24 ) $ (1.17 ) $ (0.32 ) $ (0.58 ) $ (2.11 ) $ (1.99 ) $ (0.92 ) Shares used in net loss per share calculation: Basic 4,416 4,413 4,406 4,395 4,390 4,351 4,333 4,326 Diluted 4,416 4,413 4,406 4,395 4,390 4,351 4,333 4,326 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)country | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)segment | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Sep. 30, 2014segment | Dec. 31, 2015USD ($)customersegmentcountry | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Summary of Significant Accounting Policies [Abstract] | ||||||||||||
Number of countries in which Company maintains offices (in country) | country | 7 | 7 | ||||||||||
Number of reporting segments (in segment) | segment | 1 | 2 | 1 | |||||||||
Loss on write down of property, equipment and other | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 4,409 | $ 0 | $ 0 | $ 0 | $ 4,409 | $ 0 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||||||||||
Percentage of net revenue | 37.20% | 33.90% | 42.70% | |||||||||
Number of Customers | customer | 2 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of Significant Accounting Policies [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 164 | $ 402 |
Inventory, Finished Goods, Net of Reserves | 2,729 | 2,841 |
Inventory, Net | $ 2,893 | $ 3,243 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payroll and related costs | $ 2,119 | $ 1,463 |
Warranty reserve | 120 | 143 |
Contingent consideration | 318 | 0 |
Restructuring charges | 0 | 701 |
Other accrued liabilities | 328 | 537 |
Accrued Liabilities, Current | $ 2,885 | $ 2,844 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies Concentration of Credit Risk (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Percentage of accounts receivable total | 31.10% | 27.60% |
Enel [Member] [Member] | ||
Percentage of accounts receivable | 18.20% | 3.60% |
Ebv Avnet [Member] | ||
Percentage of accounts receivable | 12.90% | 24.00% |
Summary of Significant Accoun49
Summary of Significant Accounting Policies Computation of Basic and Diluted net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | |||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | $ (5,599) | $ (1,047) | $ (5,163) | $ (1,424) | $ (2,553) | $ (7,226) | $ (3,272) | $ (2,560) | $ (14,739) | ||
Net loss from continuing operations | $ (13,233) | $ (15,611) | (14,739) | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 0 | 0 | 0 | 0 | (1,962) | (5,340) | (1,413) | 0 | (8,715) | (2,871) |
Net Income (Loss) Attributable to Parent | $ (5,599) | $ (1,047) | $ (5,163) | $ (1,424) | $ (2,553) | $ (9,188) | $ (8,612) | $ (3,973) | $ (13,233) | $ (24,326) | $ (17,610) |
Weighted Average Number of Shares Outstanding, Basic | 4,416,000 | 4,413,000 | 4,406,000 | 4,395,000 | 4,390,000 | 4,351,000 | 4,333,000 | 4,326,000 | 4,409,000 | 4,350,000 | 4,309,000 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 4,416,000 | 4,413,000 | 4,406,000 | 4,395,000 | 4,390,000 | 4,351,000 | 4,333,000 | 4,326,000 | 4,409,000 | 4,350,000 | 4,309,000 |
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ (1.27) | $ (0.24) | $ (1.17) | $ (0.32) | $ (0.58) | $ (1.66) | $ (0.76) | $ (0.59) | $ (3) | $ (3.59) | $ (3.42) |
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | 0 | 0 | 0 | 0 | 0 | (0.45) | (1.23) | (0.33) | 0 | (2) | (0.67) |
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ (1.27) | $ (0.24) | $ (1.17) | $ (0.32) | $ (0.58) | $ (2.11) | $ (1.99) | $ (0.92) | $ (3) | $ (5.59) | $ (4.09) |
Stock Awards Excluded from Computation of Earnings Per Share Amount | 367,363 | 406,134 | 547,294 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies Impairment of long lived assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | |||||||||||
Loss on write down of property, equipment and other | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 4,409 | $ 0 | $ 0 | $ 0 | $ 4,409 | $ 0 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Level 3 financial liabilities ending balance | $ 318 | $ 318 | $ 968 | $ 0 | ||
Fair value of asset measured on a recurring basis | ||||||
Fixed income available-for-sale securities | 16,978 | 16,978 | 30,230 | |||
Business Combination, Contingent Consideration, Liability | 318 | 318 | 968 | $ 925 | ||
Adjustment to contingent consideration | (577) | (650) | 43 | $ 0 | ||
Decrease in contingent consideration liability due to performance targets | (759) | |||||
Amortization of contingent consideration | 109 | |||||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||||
Fair value of asset measured on a recurring basis | ||||||
Money market funds | [1] | 2,305 | 2,305 | 9,023 | ||
Fixed income available-for-sale securities | [2] | 0 | 0 | 0 | ||
Business Combination, Contingent Consideration, Liability | 0 | 0 | 0 | |||
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 | 0 | |||
Assets, Fair Value Disclosure, Recurring | 2,305 | 2,305 | 9,023 | |||
Significant Other Observable Inputs (Level 2) [Member] | ||||||
Fair value of asset measured on a recurring basis | ||||||
Money market funds | [1] | 0 | 0 | 0 | ||
Fixed income available-for-sale securities | [2] | 18,379 | 18,379 | 30,230 | ||
Business Combination, Contingent Consideration, Liability | 0 | 0 | 0 | |||
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 | 0 | |||
Assets, Fair Value Disclosure, Recurring | 18,379 | 18,379 | 30,230 | |||
Significant Unobservable Inputs (Level 3) [Member] | ||||||
Fair value of asset measured on a recurring basis | ||||||
Money market funds | [1] | 0 | 0 | 0 | ||
Fixed income available-for-sale securities | [2] | 0 | 0 | 0 | ||
Business Combination, Contingent Consideration, Liability | 318 | 318 | 968 | |||
Liabilities, Fair Value Disclosure, Recurring | 318 | 318 | 968 | |||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 | |||
Fair Value, Measurements, Recurring [Member] | ||||||
Fair value of asset measured on a recurring basis | ||||||
Money market funds | [1] | 2,305 | 2,305 | 9,023 | ||
Fixed income available-for-sale securities | [2] | 18,379 | 18,379 | 30,230 | ||
Liabilities, Fair Value Disclosure, Recurring | 318 | 318 | 968 | |||
Assets, Fair Value Disclosure, Recurring | $ 20,684 | $ 20,684 | $ 39,253 | |||
[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 |
Financial Instruments-Available
Financial Instruments-Available for Sale Securities (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value of short term investment unrealized holdings and gains | ||
Amortized Cost | $ 16,989 | $ 30,237 |
Aggregate fair value | 16,978 | 30,230 |
Unrealized Holdings gains | 0 | 0 |
Unrealized Holdings Losses | $ 11 | $ 7 |
Financial Instruments (Details
Financial Instruments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financial Instruments (Textual) [Abstract] | |||||||||||
Short-term investments contractual maturity period minimum | 5 months | ||||||||||
Short-term investments contractual maturity period maximum | 12 months | ||||||||||
Average short-term investments maturity period | 4 months | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Goodwill impairment charges | $ 5,698 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,698 | $ 0 | $ 0 |
Discontinued Operations [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Goodwill impairment charges | $ 5,700 | $ 3,400 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Buildings and improvements | $ 0 | $ 27,629 |
Computer and other equipment | 3,253 | 4,046 |
Software | 3,130 | 3,283 |
Furniture and fixtures | 106 | 2,205 |
Leasehold improvements | 191 | 894 |
Property, Plant and Equipment, Gross | 6,680 | 38,057 |
Less: Accumulated depreciation and amortization | (6,085) | (27,867) |
Property and equipment, net | $ 595 | $ 10,190 |
Property and Equipment Narrativ
Property and Equipment Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2008USD ($)renewal_option | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2000USD ($) | Oct. 31, 1999USD ($) | |
Property, Plant and Equipment [Abstract] | ||||||||||||||
Capital Leases, Future Minimum Payments Due | $ 48,900 | |||||||||||||
Number of renewals permitted under building lease | renewal_option | 2 | |||||||||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |||||||||||||
Capital Lease Obligations Recorded | $ 27,600 | $ 12,000 | $ 15,200 | |||||||||||
Increase in lease financing obligations | $ 12,500 | |||||||||||||
Loss on write down of property, equipment and other | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 4,409 | $ 0 | $ 0 | $ 0 | $ 4,409 | $ 0 | |||
Up-front lease termination charges | 10,000 | |||||||||||||
Decrease in building related financing obligations | 15,300 | |||||||||||||
Loss on contract termination | 0 | 0 | 3,337 | 0 | 0 | 0 | 0 | 0 | 3,337 | 0 | 0 | |||
Capital Leases, Income Statement, Amortization Expense | 1,100 | 1,900 | 2,000 | |||||||||||
Net Book value of Buildings leased | 0 | 7,700 | 0 | 7,700 | ||||||||||
Lease expense for land under operating lease | 617 | 741 | 741 | |||||||||||
Repayment of Other Debt, Building Leases | 11,300 | 2,200 | 2,000 | |||||||||||
Interest Expense, Other | $ (2) | $ (5) | $ (128) | $ (252) | $ (261) | $ (271) | (280) | $ (288) | $ (387) | $ (1,100) | $ (1,235) | |||
Impairment of long-lived assets held-for-use included in discontinued operations | $ 687 |
Property and Equipment Useful L
Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Computer And related software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Computer And related software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Other Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Other Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Telecommunication Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Aug. 15, 2014 | Dec. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||||
Business Combination, Contingent Consideration, Liability | $ 318 | $ 925 | $ 318 | $ 968 | ||
Assets acquired and liabilities assumed | ||||||
Goodwill | 0 | 0 | 5,936 | $ 8,390 | ||
Decrease in contingent consideration | 577 | 650 | (43) | $ 0 | ||
Developed Technology Rights [Member] | ||||||
Assets acquired and liabilities assumed | ||||||
Identifiable intangible assets | 800 | 800 | ||||
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 | 21.00% | |||||
Fair value inputs, discount range, high end of range | 22.00% | |||||
Assets acquired and liabilities assumed | ||||||
Identifiable intangible assets | 500 | 500 | ||||
Trade Names [Member] | ||||||
Assets acquired and liabilities assumed | ||||||
Identifiable intangible assets | 200 | $ 200 | ||||
Lumewave, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Effective Date of Acquisition | Aug. 15, 2014 | |||||
Percentage of Voting Interests Acquired | 100.00% | |||||
Name of Acquired Entity | Lumewave, Inc. | |||||
Payments to Acquire Businesses, Gross | $ 1,800 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 715 | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 1,300 | |||||
Business Combination, Contingent Consideration, Liability | $ 318 | $ 925 | $ 318 | $ 968 | ||
Business Acquisition, Working Capital Adjustment to Consideration Transferrred | 225 | |||||
Assets acquired and liabilities assumed | ||||||
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) | |||||
Total assets acquired and liabilities assumed, net | $ 3,200 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Discontinued Operations [Abstract] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Description and Timing of Disposal | 9/30/2014 | |||||||||||||
Proceeds from divestiture of Grid business, net of transaction costs | $ 4,900 | $ 0 | $ 2,144 | $ 0 | ||||||||||
Supply commitment term | 39 months | |||||||||||||
Restructuring Costs in Discontinued Operations | 1,400 | |||||||||||||
Revenues | 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 | 0 | 0 | ||||||||||||
Loss on sale of Grid business | 0 | (254) | 0 | |||||||||||
Net loss from discontinued operations, net of income taxes | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | (2,141) | $ (5,579) | $ (1,530) | 0 | [1] | (9,250) | [1] | (3,679) | [1] |
Net loss from discontinued operations attributable to non-controlling interest, net of income taxes | 0 | 0 | 0 | 0 | 0 | (179) | (239) | (117) | 0 | (535) | (808) | |||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (1,962) | $ (5,340) | $ (1,413) | $ 0 | (8,715) | (2,871) | |||
Revenues from related parties, discontinued operations | $ 112 | $ 4,400 | ||||||||||||
[1] | See Note 8 for summary of amounts included representing stock-based compensation expense. |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance at beginning of year | $ (431) | $ 1,015 |
Current period change | (1,163) | (1,446) |
Balance at year end | (1,594) | (431) |
Accumulated Translation Adjustment [Member] | ||
Balance at beginning of year | (424) | 1,007 |
Current period change | (1,158) | (1,431) |
Balance at year end | (1,582) | (424) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Balance at beginning of year | (7) | 8 |
Current period change | (5) | (15) |
Balance at year end | $ (12) | $ (7) |
Stockholders' Equity and Empl60
Stockholders' Equity and Employee Stock Option Plans (Details Textual) | Dec. 07, 2015 | Jun. 30, 2013 | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013shares | Mar. 31, 2013shares | Dec. 31, 2012shares |
Class of Stock [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 517,505 | 515,217 | 457,585 | 1,546,743 | 1,346,758 | ||
Fungible Share Ratio | 1.7 | ||||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | |||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |||||
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |||||
Common Stock, Shares, Outstanding | 4,416,452 | 4,398,365 | |||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Reverse stock split ratio | 0.1 |
Stockholders' Equity and Empl61
Stockholders' Equity and Employee Stock Option Plans Stock Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Number of Shares Available for Grant, Opening Balance | 515,217 | 457,585 | 1,346,758 |
Options and SARS, Outstanding, Number, opening balance | 259,679 | 410,484 | 393,931 |
Options and SARS, Outstanding opening balance, Weighted Average Exercise Price, | $ 34 | $ 41.30 | $ 60.80 |
Number Of Shares Available For Grant, Options ans SARS Granted | (112,600) | (46,800) | (178,572) |
Options and SARS, Grants in Period | 112,600 | 46,800 | 178,572 |
Options and SARS, Grants in Period, Weighted Average Exercise Price | $ 9.14 | $ 24.60 | $ 23.40 |
Number of shares available for grant, RSU granted | (83,555) | (219,153) | (70,266) |
Number Of Shares Available For Grant, Options and SARS Canceled | 86,743 | 197,066 | 162,019 |
Options and SARS, Forfeitures in Period | (86,743) | (197,066) | (162,019) |
Options and SARS, Forfeitures in Period, Weighted Average Exercise Price | $ 32.38 | $ 47 | $ 68.90 |
Number of shares available for grant, RSU canceled | 111,700 | 126,519 | 47,186 |
Options and SARS, Exercises in Period, Shares | (539) | ||
Options and SARS, Exercises in Period, Weighted Average Exercise Price | $ 31.70 | ||
Unissued shares returned to plan | 0 | (1,554,243) | |
1998 Directors Plan shares expired | (7,500) | ||
Number of Additional Shares Authorized | 712,203 | ||
Number of Shares Available for Grant, Ending Balance | 517,505 | 515,217 | 457,585 |
Options and SARS, Outstanding, Number, Closing balance | 285,536 | 259,679 | 410,484 |
Options and SARS, Outstanding ending balance, Weighted Average Exercise Price | $ 24.72 | $ 34 | $ 41.30 |
Stockholders' Equity and Employee Stock Option Plans (Textual) [Abstract] | |||
Options, Exercises in Period, Total Intrinsic Value | $ 0 | $ 3 | $ 0 |
Stockholders' Equity and Empl62
Stockholders' Equity and Employee Stock Option Plans 1997 Stock Plan (Details) - shares | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | Apr. 01, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 867,755 | 1,090,540 | 2,097,283 | |||
Options and SARS, Outstanding, Number | 285,536 | 410,484 | 259,679 | 550,540 | 393,931 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional Shares Authorized in 2013 Amendment | 540,000 | |||||
Number of Additional Shares Authorized | 712,203 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 517,505 | 457,585 | 515,217 | 1,546,743 | 1,346,758 | |
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 4 years | |||||
1997 Stock Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase price as a percent of fair market value | 100.00% | |||||
Purchase price as a percent of fair market value for owners of more than 10% of stock | 110.00% | |||||
1997 Stock Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award expiration term (in years) | 5 years | |||||
Award vesting period (in years) | 4 years | |||||
1997 Stock Plan [Member] | Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase price as a percent of fair market value | 100.00% | |||||
Award expiration term (in years) | 5 years | |||||
Award vesting period (in years) | 4 years | |||||
1997 Stock Plan [Member] | Granted From May 6, 2003 To March 31, 2013 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award expiration term (in years) | 5 years | |||||
1997 Stock Plan [Member] | Granted After March 31, 2013 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award expiration term (in years) | 10 years |
Stockholders' Equity and Empl63
Stockholders' Equity and Employee Stock Option Plans RSU and RSA Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
RSU/ RSA Nonvested and outstanding opening balance, Number | 129,322 | 136,711 | 192,781 |
RSU/ RSA Nonvested and Outstanding Opening balance, Weighted Average Grant Date Fair Value | $ 33.15 | $ 52.20 | $ 65.60 |
RSU/ RSA, Grants in Period | 49,150 | 128,945 | 41,906 |
RSU/RSA, Grants in Period, Weighted Average Grant Date Fair Value | $ 9.03 | $ 25.03 | $ 23.38 |
RSU/RSA Vested in Period | (40,414) | (50,022) | (52,199) |
RSU/ RSA Vested in Period, Weighted Average Grant Date Fair Value | $ 35.32 | $ 57.84 | $ 69.98 |
RSU/ RSA Forfeited in Period | (73,344) | (86,312) | (45,777) |
RSU/RSA, Forfeitures, Weighted Average Grant Date Fair Value | $ 32.29 | $ 36.88 | $ 61.99 |
RSU/ RSA Nonvested and outstanding ending balance, Number | 64,714 | 129,322 | 136,711 |
RSU/ RSA Nonvested and Outstanding Closing balance, Weighted Average Grant Date Fair Value | $ 14.45 | $ 33.15 | $ 52.20 |
Total fair value of RSUs vested and released | $ 379 | $ 1,200 | $ 1,200 |
RSU, Vested and Expected to Vest, Outstanding, Number | 59,172 | ||
RSU, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 334 | ||
Share Price | $ 5.64 |
Stockholders' Equity and Empl64
Stockholders' Equity and Employee Stock Option Plans Stock option outstanding by exercise price range (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
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 6 months 15 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
Options and SARS, Outstanding, Weighted Average Exercise Price | $ 24.72 | $ 34 | $ 41.30 | $ 60.80 | |
Options and SARS, Outstanding, Number | 285,536 | 259,679 | 410,484 | 550,540 | 393,931 |
Options, Vested and Expected to Vest, Outstanding, Number | 273,003 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 7 years 6 months 11 days | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 25.10 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 0 | ||||
Options, Exercisable, Number | 112,091 | ||||
Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 7 months 13 days | ||||
Options, Exercisable, Weighted Average Exercise Price | $ 39.15 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | ||||
Exercise Price Range $6.90 - $9.10 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 6.90 | ||||
Exercise Price Range, Upper Range Limit | $ 9.10 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 6,500 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 9 years 5 months 5 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 8.25 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
Exercise Price Range $9.11 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 9.11 | ||||
Exercise Price Range, Upper Range Limit | $ 9.11 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 89,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 9 years 5 months 12 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 9.11 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
Exercise Price Range $9.15 - $22.30 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 9.15 | ||||
Exercise Price Range, Upper Range Limit | $ 22.30 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 24,400 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 8 years 8 months 7 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 15.46 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
Exercise Price Range $22.4 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 22.40 | ||||
Exercise Price Range, Upper Range Limit | $ 22.40 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 44,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 8 years 3 months | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 22.40 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
Exercise Price Range $23.70 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 23.70 | ||||
Exercise Price Range, Upper Range Limit | $ 23.70 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 35,960 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 7 years 5 months 8 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 23.70 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
Exercise Price Range $24.20 - $26.50 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 24.20 | ||||
Exercise Price Range, Upper Range Limit | $ 26.50 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 9,800 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 7 years 11 months 20 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 24.92 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
Exercise Price Range $31.70 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 31.70 | ||||
Exercise Price Range, Upper Range Limit | $ 31.70 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 34,476 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 6 years 2 months 5 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 31.70 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
Exercise Price Range $32.50 - $35.20 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 32.50 | ||||
Exercise Price Range, Upper Range Limit | $ 35.20 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 12,400 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 6 years | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 33.37 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
Exercise Price Range $74.60 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 74.60 | ||||
Exercise Price Range, Upper Range Limit | $ 90.80 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 25,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 1 year 7 months 17 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 74.60 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
Exercise Price Range $90.80 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 90.80 | ||||
Exercise Price Range, Upper Range Limit | $ 90.80 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 4,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 4 months 20 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 90.80 | ||||
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) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [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 | 1.70% | 2.00% | 1.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 56.30% | 66.30% | 64.80% |
Fair Value Assumptions, Expected Term | 5 years 29 days | 5 years 11 months 23 days | 6 years 1 month 28 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.54 | $ 14.70 | $ 13.90 |
Contractual term of options awarded | 10 years |
Stock Based Compensation Equity
Stock Based Compensation Equity Compensation expense for RSUs and RSAs with Financial or other Performance based vesting requirments (Details) - USD ($) $ in Thousands | 12 Months Ended | 23 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2012 | Sep. 30, 2014 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 70,080 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | $ 324 | ||||
Fair Value of Performance Awards on Grant Date | 2,277 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 1,953 | ||||
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 | 8,000 | ||||
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 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 596 | ||||
Latest Date that Performance condition could be met | April 2,015 | ||||
November 2011 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 5,000 | ||||
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 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 277 | ||||
Latest Date that Performance condition could be met | April 2,015 | ||||
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 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Reversed Share Based Awards Other than Options | $ 264 | ||||
Number of non-vested equity-based payment instruments with performance condition excluding stock (or unit) options | 13,000 | ||||
June 2014 Grant Date [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 57,080 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | $ 324 | ||||
Fair Value of Performance Awards on Grant Date | 1,404 | $ 743 | $ 2,300 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 1,080 | ||||
Latest Date that Performance condition could be met | December 2,014 | ||||
Number of non-vested equity-based payment instruments with performance condition excluding stock (or unit) options | 8,050 | 30,200 | 95,330 | ||
Fair Value of Performance Awards on Grant Date for employees who terminated | $ 198 | ||||
Grant date fair value of awards that will not vest | $ 965 |
Stock Based Compensation Expens
Stock Based Compensation Expense Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 977 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year | ||
Allocated Share-based Compensation Expense, Net of Tax | $ 293 | $ 1,197 | $ 2,538 |
Stock based compensation capitalized in Inventory | 5 | 8 | |
Stock Based Compensation capitalized in Deferred COGS | 1 | 2 | |
Discontinued Operations [Member] | |||
Allocated Share-based Compensation Expense | 0 | (342) | 1,133 |
Cost of Sales [Member] | |||
Allocated Share-based Compensation Expense | (74) | 292 | 198 |
Product Development [Member] | |||
Allocated Share-based Compensation Expense | 304 | (73) | 156 |
Selling and Marketing Expense [Member] | |||
Allocated Share-based Compensation Expense | (92) | 206 | 84 |
General and Administrative Expense [Member] | |||
Allocated Share-based Compensation Expense | 155 | 1,114 | 967 |
Total Share based compensation costs prior to tax benefit [Member] | |||
Allocated Share-based Compensation Expense | 293 | 1,197 | 2,538 |
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) - customer | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues attributable to sales [Line Items] | |||
Number of Customers | 2 | ||
Total | 37.20% | 33.90% | 42.70% |
Ebv Avnet [Member] | |||
Revenues attributable to sales [Line Items] | |||
Total | 24.50% | 26.20% | 26.60% |
Enel [Member] | |||
Revenues attributable to sales [Line Items] | |||
Total | 12.70% | 7.70% | 16.10% |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)acquistion | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Goodwill [Line Items] | |||||||||||
Number of acquisitions | acquistion | 4 | ||||||||||
Balance as of Period End | $ 0 | $ 5,936 | $ 0 | $ 5,936 | $ 8,390 | ||||||
Goodwill, Impairment Loss | $ (5,698) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | (5,698) | 0 | $ 0 |
Goodwill, Acquired During Period | 1,257 | ||||||||||
Balance as of Period Start | $ 5,936 | $ 8,390 | 5,936 | 8,390 | |||||||
Goodwill, translation adjustment | $ (238) | (323) | |||||||||
Discontinued Operations [Member] | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill, Impairment Loss | $ (3,388) |
Goodwill and Intangible Asset70
Goodwill and Intangible Assets Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 1,500 | ||
Amortization | $ (230) | (87) | |
Gross Carrying Value | 1,500 | ||
Accumulated Amortization | (317) | ||
Total finite-lived intangible assets, net | $ 1,183 | 1,413 | $ 0 |
Weighted-Average Remaining Useful Life (in years) | 5 years 1 month 17 days | ||
Amortization of Intangible Assets | $ 123 | 46 | |
Amortization of intangible assets included in operating expenses | 107 | 41 | |
Amortization of Intangible Assets | 230 | $ 87 | |
Developed Technology Rights [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets | 800 | ||
Gross Carrying Value | 800 | ||
Accumulated Amortization | (169) | ||
Total finite-lived intangible assets, net | $ 631 | ||
Weighted-Average Remaining Useful Life (in years) | 5 years 1 month 17 days | ||
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets | $ 500 | ||
Gross Carrying Value | 500 | ||
Accumulated Amortization | (106) | ||
Total finite-lived intangible assets, net | $ 394 | ||
Weighted-Average Remaining Useful Life (in years) | 5 years 1 month 17 days | ||
Trade Names [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets | $ 200 | ||
Gross Carrying Value | 200 | ||
Accumulated Amortization | (42) | ||
Total finite-lived intangible assets, net | $ 158 | ||
Weighted-Average Remaining Useful Life (in years) | 5 years 1 month 17 days |
Goodwill and Intangible Asset71
Goodwill and Intangible Assets Finite-Lived Amortization Expense by Fiscal Year (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 230 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 229 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 229 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 229 | ||
Finite-Lived Intangible Assets, Amortization Expense, After Year Four | 266 | ||
Total finite-lived intangible assets, net | $ 1,183 | $ 1,413 | $ 0 |
Commitments and Contingencies F
Commitments and Contingencies Future minimum lease payments for Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Future Minimum Payments for Operating Leases | |||
2,016 | $ 835 | ||
2,017 | 917 | ||
2,018 | 818 | ||
2,019 | 397 | ||
Operating Leases, Future Minimum Payments Due | 2,967 | ||
Deferred Rent Credit | 112 | $ 180 | |
Deferred Rent Credit, Current | 15 | 32 | |
Rent expense | 1,260 | 1,483 | $ 1,527 |
Sublease rentals | (685) | (202) | 0 |
Rent expense included in discontinued operations | 0 | (160) | (145) |
Rent expense, net | $ 575 | $ 1,121 | $ 1,382 |
Commitments and Contingencies R
Commitments and Contingencies Royalties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Royalty Expense | $ 390 | $ 500 | $ 418 |
Disposal group, including discontinued operation, royalty expense | $ 1 | $ 52 |
Commitments and Contingencies L
Commitments and Contingencies Line of Credit (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)letter_of_credit | Dec. 31, 2014USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Line of Credit Maintained | $ 1,000 | $ 5,000 |
Collateral required - old line of credit | 6,300 | |
Number of Letter of Credit | letter_of_credit | 1 | |
Letters of Credit Outstanding, Amount | $ 113 | |
Restricted Investments, Current | $ 1,401 | $ 1,401 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Loss from Continuing Operations before Income Taxes, Domestic | $ (11,932,000) | $ (15,592,000) | $ (14,358,000) | ||||||||
Income (loss) from Continuing Operations before Income Taxes, Foreign | (1,251,000) | 192,000 | (70,000) | ||||||||
Loss before provision for income taxes | $ (5,613,000) | $ (1,057,000) | $ (5,102,000) | $ (1,411,000) | $ (2,456,000) | $ (7,193,000) | $ (3,166,000) | $ (2,585,000) | (13,183,000) | (15,400,000) | $ (14,428,000) |
Deferred tax liabilities related to fixed and intangible liabilities | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes Components of inco
Income Taxes Components of income tax expense/ (benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal: | |||||||||||
Current | $ 0 | $ 0 | $ 0 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Total federal provision | 0 | 0 | 0 | ||||||||
State: | |||||||||||
Current | 20 | 16 | 17 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Total state provision | 20 | 16 | 17 | ||||||||
Foreign: | |||||||||||
Current | 30 | 195 | 294 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Total foreign provision | 30 | 195 | 294 | ||||||||
Total income tax expense | $ (14) | $ (10) | $ 61 | $ 13 | $ 97 | $ 33 | $ 106 | $ (25) | $ 50 | $ 211 | $ 311 |
Income Taxes Effective Rate Rec
Income Taxes Effective Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income Tax Reconciliation, Income Tax Benefit, at Federal Statutory Income Tax Rate | $ (4,615) | $ (5,390) | $ (5,050) | ||||||||
Income Tax Reconciliation, State and Local Income Taxes | (634) | (577) | 17 | ||||||||
U.S.-Foreign rate differential | 480 | 100 | 342 | ||||||||
Change in Valuation Allowance | 3,072 | 4,115 | 5,862 | ||||||||
Income Tax Reconciliation, Tax Credits, Research | 175 | 357 | (1,241) | ||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount | 1,566 | 1,560 | 406 | ||||||||
Others | 6 | 46 | (25) | ||||||||
Total income tax expense | $ (14) | $ (10) | $ 61 | $ 13 | $ 97 | $ 33 | $ 106 | $ (25) | $ 50 | $ 211 | $ 311 |
Income Taxes Components of defe
Income Taxes Components of deferred tax asset/ liability (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 83,522,000 | $ 72,058,000 |
Tax credit carry forwards | 18,940,000 | 26,571,000 |
Fixed and intangible assets | 868,000 | 6,424,000 |
Capitalized research and development costs | 58,000 | 58,000 |
Reserves and other cumulative temporary differences | 3,828,000 | 15,535,000 |
Gross deferred income tax assets | 107,216,000 | 120,646,000 |
Deferred tax liabilities: | ||
Fixed and intangible assets | 0 | 0 |
Gross deferred income tax liabilities | 0 | 0 |
Valuation allowance | (107,216,000) | (120,646,000) |
Net deferred income tax assets | $ 0 | $ 0 |
Percentage of deferred tax assets on which valuation allowance is created | 100.00% |
Income Taxes Components of De79
Income Taxes Components of Deferred Tax asset/ liability (Textual) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Components of deferred tax assets and liabilities [Line Items] | |
Undistributed Earnings of Foreign Subsidiaries | $ 12.1 |
State and Local Jurisdiction [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Operating Loss Carryforwards | 126.1 |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Tax Credit Carryforward, Amount | 15.9 |
Domestic Tax Authority [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Operating Loss Carryforwards | $ 253.2 |
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2035 |
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 | Dec. 31, 2035 |
Income Taxes Company's uncertai
Income Taxes Company's uncertain tax positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance as of the beginning of the year | $ 1,359 | $ 2,138 | |
Tax positions related to current year: | |||
Additions | 147 | 76 | |
Reductions | (18) | (48) | |
Tax positions related to prior years: | |||
Additions | 7,991 | 0 | |
Reductions | (28) | (232) | |
Settlements | 0 | 0 | |
Lapses in statute of limitations | (385) | (575) | |
Balance as of the end of the year | 9,066 | 1,359 | $ 2,138 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 409 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 74 | ||
Unrecognized tax benfits, reduction in accrued interest and penalties | $ 25 | $ 35 | $ 6 |
Warranty Reserves (Details)
Warranty Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Warranty Reserves [Abstract] | ||
Warranty reserve | $ 120 | $ 143 |
Related Parties (Details Textua
Related Parties (Details Textual) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2000USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | |
Related Party Transactions [Abstract] | ||||
Stock Issued During Period, Shares, New Issues | shares | 300 | |||
Stock Issued During Period, Value, New Issues | $ | $ 130,700 | |||
Number of shares sold by Related Party. | shares | 0 | |||
Number of board members Related Party can nominate | 1 | |||
Number of Related Party Representatives on Board | 0 | |||
Revenue from Related Parties | $ | $ 4,909 | $ 2,993 | $ 7,363 |
Restructuring Restructuring Pla
Restructuring Restructuring Plan (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)employee | Dec. 31, 2014USD ($)employee | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 0 | $ 164 | $ 227 | $ 0 | $ 0 | $ 0 | $ 391 | $ 2,254 | |
Restructuring Reserve, Current | 0 | 701 | $ 0 | $ 701 | ||||||||
February 2013 Restructuring Plan [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 43 | |||||||||||
Restructuring Reserve | $ 0 | |||||||||||
Restructuring charges | 2,500 | |||||||||||
Payments for Restructuring | 2,522 | |||||||||||
Restructuring Reserve, Current | 0 | |||||||||||
2014 Restructuring Plan [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 44 | |||||||||||
Restructuring Reserve | 701 | $ 701 | $ 0 | |||||||||
Restructuring charges | $ 0 | 1,841 | ||||||||||
Payments for Restructuring | 701 | 1,140 | ||||||||||
Restructuring Reserve, Current | $ 0 | $ 701 | $ 0 | $ 701 |
Restructuring Restructuring P84
Restructuring Restructuring Plan (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)employee | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 0 | $ 164 | $ 227 | $ 0 | $ 0 | $ 0 | $ 391 | $ 2,254 |
Restructuring Costs in Discontinued Operations | 1,400 | ||||||||||
Restructuring Reserve, Current | 0 | 701 | $ 0 | 701 | |||||||
2014 Restructuring Plan [Member] | |||||||||||
Restructuring Reserve | 701 | 701 | $ 0 | ||||||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 44 | ||||||||||
Restructuring charges | $ 0 | 1,841 | |||||||||
Restructuring Costs in Discontinued Operations | 1,400 | ||||||||||
Payments for Restructuring | 701 | 1,140 | |||||||||
Restructuring Reserve, Current | $ 0 | $ 701 | $ 0 | $ 701 |
Valuation and Qualifying acco85
Valuation and Qualifying accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Opening Balance | $ 57 | $ 353 | $ 430 |
Valuation Allowances and Reserves, Charged to Cost and Expense | (19) | (46) | 55 |
Valuation Allowances and Reserves, Adjustments | 7 | 250 | 132 |
Valuation Allowances and Reserves, Closing Balance | 31 | 57 | 353 |
Allowance for Sales Returns [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Opening Balance | 401 | 530 | 429 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 3,442 | 3,729 | 5,375 |
Valuation Allowances and Reserves, Adjustments | 3,353 | 3,858 | 5,274 |
Valuation Allowances and Reserves, Closing Balance | $ 490 | $ 401 | $ 530 |
Segment Disclosure (Details Tex
Segment Disclosure (Details Textual) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014USD ($)segment | Sep. 30, 2014segment | Dec. 31, 2015USD ($)segmentgeographic_area | |
Segment Reporting [Abstract] | |||
Number of reporting segments (in segment) | segment | 1 | 2 | 1 |
Number of geographic areas | geographic_area | 3 | ||
Long-lived assets US | $ | $ 15.6 | $ 2.6 |
Segment Disclosure (Details 1)
Segment Disclosure (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Revenue Information by Geography [Abstract] | ||||||||||||||
Revenues | $ 9,590 | $ 9,983 | $ 9,363 | $ 9,868 | $ 9,647 | $ 9,178 | $ 8,981 | $ 10,924 | $ 38,804 | [1] | $ 38,730 | [1] | $ 45,857 | [1] |
United States [Member] | ||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||
Revenues | 11,138 | 10,680 | 11,787 | |||||||||||
Other Americas [Member] | ||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||
Revenues | 1,242 | 2,074 | 1,380 | |||||||||||
Total Americas [Member] | ||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||
Revenues | 12,380 | 12,754 | 13,167 | |||||||||||
Germany [Member] | ||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||
Revenues | 9,987 | 10,733 | 12,789 | |||||||||||
Other EMEA [Member] | ||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||
Revenues | 7,812 | 3,761 | 7,105 | |||||||||||
Total EMEA [Member] | ||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||
Revenues | 17,799 | 14,494 | 19,894 | |||||||||||
China [Member] | ||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||
Revenues | 2,436 | 3,225 | 5,286 | |||||||||||
Other APJ [Member] | ||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||
Revenues | 6,189 | 8,257 | 7,510 | |||||||||||
Total APJ [Member] | ||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||
Revenues | $ 8,625 | $ 11,482 | $ 12,796 | |||||||||||
[1] | Includes related party amounts of $4,909 in 2015, $2,993 in 2014, and $7,363 in 2013. See Note 14 for additional information on related party transactions. |
Joint Venture (Details)
Joint Venture (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Less Than Wholly Owned Subsidiary [Abstract] | |||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 0 | $ 535 | $ 808 |
Ownership interest in the joint venture | 51.00% | ||
Registered capital of the Joint venture | $ 4,000 |
Selected Quarterly Financial 89
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues | $ 9,590 | $ 9,983 | $ 9,363 | $ 9,868 | $ 9,647 | $ 9,178 | $ 8,981 | $ 10,924 | $ 38,804 | [1] | $ 38,730 | [1] | $ 45,857 | [1] |
Cost of Revenue | 4,093 | 4,370 | 3,821 | 4,244 | 4,316 | 4,180 | 3,784 | 4,538 | 16,528 | [2] | 16,818 | [2] | 18,015 | [2] |
Gross profit | 5,497 | 5,613 | 5,542 | 5,624 | 5,331 | 4,998 | 5,197 | 6,386 | 22,276 | 21,912 | 27,842 | |||
Product development | 2,341 | 2,454 | 2,340 | 2,612 | 2,286 | 2,305 | 2,170 | 2,749 | 9,747 | [2] | 9,510 | [2] | 10,922 | [2] |
Sales and marketing | 1,602 | 1,848 | 2,194 | 2,188 | 2,498 | 2,160 | 2,265 | 2,175 | 7,832 | [2] | 9,098 | [2] | 9,061 | [2] |
General and administrative | 1,694 | 2,547 | 2,187 | 2,821 | 2,847 | 3,538 | 3,579 | 3,770 | 9,249 | [2] | 13,734 | [2] | 14,644 | [2] |
Goodwill impairment charges | 5,698 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5,698 | 0 | 0 | |||
Lease termination charges | 0 | 0 | 3,337 | 0 | 0 | 0 | 0 | 0 | 3,337 | 0 | 0 | |||
Loss on write down of property, equipment and other | 0 | 0 | 0 | 0 | 0 | 4,409 | 0 | 0 | 0 | 4,409 | 0 | |||
Restructuring charges | 0 | 0 | 0 | 0 | 164 | 227 | 0 | 0 | 0 | 391 | 2,254 | |||
Total operating expenses | 11,335 | 6,849 | 10,058 | 7,621 | 7,795 | 12,639 | 8,014 | 8,694 | 35,863 | 37,142 | 40,333 | |||
Loss from operations | (5,838) | (1,236) | (4,516) | (1,997) | (2,464) | (7,641) | (2,817) | (2,308) | (13,587) | (15,230) | (12,491) | |||
Interest and other income (expense), net | 227 | 184 | (458) | 838 | 269 | 719 | (69) | 11 | 791 | 930 | (702) | |||
Interest Expense, Other | (2) | (5) | (128) | (252) | (261) | (271) | (280) | (288) | (387) | (1,100) | (1,235) | |||
Loss before provision for income taxes | (5,613) | (1,057) | (5,102) | (1,411) | (2,456) | (7,193) | (3,166) | (2,585) | (13,183) | (15,400) | (14,428) | |||
Income tax expense | (14) | (10) | 61 | 13 | 97 | 33 | 106 | (25) | 50 | 211 | 311 | |||
Income (Loss) from Continuing Operations Attributable to Parent | (5,599) | (1,047) | (5,163) | (1,424) | (2,553) | (7,226) | (3,272) | (2,560) | (14,739) | |||||
Net loss from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | 0 | (2,141) | (5,579) | (1,530) | 0 | [2] | (9,250) | [2] | (3,679) | [2] |
Net loss from discontinued operations attributable to non controlling interest, net of income taxes | 0 | 0 | 0 | 0 | 0 | 179 | 239 | 117 | 0 | 535 | 808 | |||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | 0 | 0 | 0 | 0 | 0 | (1,962) | (5,340) | (1,413) | 0 | (8,715) | (2,871) | |||
Net Income (Loss) Attributable to Parent | $ (5,599) | $ (1,047) | $ (5,163) | $ (1,424) | $ (2,553) | $ (9,188) | $ (8,612) | $ (3,973) | $ (13,233) | $ (24,326) | $ (17,610) | |||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ (1.27) | $ (0.24) | $ (1.17) | $ (0.32) | $ (0.58) | $ (1.66) | $ (0.76) | $ (0.59) | $ (3) | $ (3.59) | $ (3.42) | |||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | 0 | 0 | 0 | 0 | 0 | (0.45) | (1.23) | (0.33) | 0 | (2) | (0.67) | |||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ (1.27) | $ (0.24) | $ (1.17) | $ (0.32) | $ (0.58) | $ (2.11) | $ (1.99) | $ (0.92) | $ (3) | $ (5.59) | $ (4.09) | |||
Weighted Average Number of Shares Outstanding, Basic | 4,416 | 4,413 | 4,406 | 4,395 | 4,390 | 4,351 | 4,333 | 4,326 | 4,409 | 4,350 | 4,309 | |||
Weighted Average Number of Shares Outstanding, Diluted | 4,416 | 4,413 | 4,406 | 4,395 | 4,390 | 4,351 | 4,333 | 4,326 | 4,409 | 4,350 | 4,309 | |||
[1] | Includes related party amounts of $4,909 in 2015, $2,993 in 2014, and $7,363 in 2013. See Note 14 for additional information on related party transactions. | |||||||||||||
[2] | See Note 8 for summary of amounts included representing stock-based compensation expense. |