Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ECHELON CORP | ||
Entity Central Index Key | 31,347 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 | $ 16.9 | ||
Entity Common Stock, Shares Outstanding | 4,524,021 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 7,261 | $ 9,803 | |
Restricted investments | 1,250 | 1,250 | |
Short-term investments | 11,967 | 11,983 | |
Accounts receivable, net of allowances of $564 in 2016 and $521 in 2015 | [1] | 2,721 | 3,015 |
Inventories | 3,251 | 2,570 | |
Deferred cost of goods sold | 1,767 | 1,104 | |
Other current assets | 1,152 | 900 | |
Total current assets | 29,369 | 30,625 | |
Property and equipment, net | 458 | 445 | |
Intangible assets, net | 725 | 953 | |
Other long-term assets | 987 | 885 | |
Total assets | 31,539 | 32,908 | |
CURRENT LIABILITIES: | |||
Accounts payable | 2,317 | 1,697 | |
Accrued liabilities | 1,878 | 2,174 | |
Deferred revenues | 4,805 | 3,671 | |
Total current liabilities | 9,000 | 7,542 | |
LONG-TERM LIABILITIES: | |||
Other long-term liabilities | 652 | 688 | |
Liabilities | 9,652 | 8,230 | |
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 - 4,753,654 in 2016 and 4,738,370 shares in 2015, Outstanding - 4,431,736 in 2016 and 4,416,452 shares in 2015 | 48 | 48 | |
Additional paid-in capital | 359,339 | 358,123 | |
Treasury stock (321,918 shares as of December 31, 2017 and 2016) | (28,130) | (28,130) | |
Accumulated other comprehensive loss | (1,821) | (2,437) | |
Accumulated deficit | (307,803) | (303,180) | |
Total Echelon Corporation stockholders’ equity | 21,633 | 24,424 | |
Non controlling interest in subsidiary | 254 | 254 | |
Total stockholders' equity | 21,887 | 24,678 | |
Total liabilities and stockholders' equity | $ 31,539 | $ 32,908 | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjcwMjE5NjdjZTI5OTQyODBiNmZlMDMwMWNlNDY3OWQzfFRleHRTZWxlY3Rpb246RkQ1QUNDNTgxNjI0OUE2MzI5RjZERDk4NDlDMEUyNUYM} |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Allowance for Bad Debts Reserve and Sales Returns | $ 282 | $ 564 |
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 | 4,842,294 | 4,753,654 |
Common Stock, Shares, Outstanding | 4,520,376 | 4,431,736 |
Treasury Stock, Shares | 321,918 | 321,918 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Revenues: | ||||||||||||
Revenue | $ 8,030 | $ 7,817 | $ 8,021 | $ 7,799 | $ 7,498 | $ 8,179 | $ 8,061 | $ 8,647 | $ 31,667 | [1] | $ 32,385 | [1] |
Cost of revenues: | ||||||||||||
Cost of Revenue | 3,858 | 3,337 | 3,495 | 3,326 | 3,375 | 3,707 | 3,415 | 3,805 | 14,016 | [2] | 14,302 | [2] |
Gross profit | 4,172 | 4,480 | 4,526 | 4,473 | 4,123 | 4,472 | 4,646 | 4,842 | 17,651 | 18,083 | ||
Operating expenses: | ||||||||||||
Product development | 2,551 | 2,280 | 2,255 | 2,227 | 2,119 | 1,963 | 1,985 | 2,193 | 9,313 | [2] | 8,260 | [2] |
Sales and marketing | 1,368 | 1,239 | 1,463 | 1,462 | 1,638 | 1,570 | 1,679 | 1,302 | 5,532 | [2] | 6,189 | [2] |
General and administrative | 1,450 | 1,656 | 1,929 | 1,924 | 1,782 | 2,087 | 2,197 | 2,011 | 6,959 | [2] | 8,077 | [2] |
Restructuring charges | 0 | 0 | 0 | 0 | 286 | 0 | 0 | 0 | 0 | 286 | ||
Total operating expenses | 5,369 | 5,175 | 5,647 | 5,613 | 5,825 | 5,620 | 5,861 | 5,506 | 21,804 | 22,812 | ||
Loss from operations | (1,197) | (695) | (1,121) | (1,140) | (1,702) | (1,148) | (1,215) | (664) | (4,153) | (4,729) | ||
Interest and other income (expense), net | (58) | (155) | (220) | (65) | 567 | (57) | 503 | (205) | (498) | 808 | ||
Loss from operations before provision for income taxes | (1,255) | (850) | (1,341) | (1,205) | (1,135) | (1,205) | (712) | (869) | (4,651) | (3,921) | ||
Income tax expense (benefit) | (53) | 2 | 29 | (6) | 102 | 23 | 51 | 6 | (28) | 182 | ||
Net loss | $ (1,202) | $ (852) | $ (1,370) | $ (1,199) | $ (1,237) | $ (1,228) | $ (763) | $ (875) | $ (4,623) | $ (4,103) | ||
Net income (loss) per share: | ||||||||||||
Basic and diluted net loss per share | $ (1.04) | $ (0.93) | ||||||||||
Shares used in computing net loss per share: | ||||||||||||
Basic | 4,520 | 4,460 | 4,445 | 4,434 | 4,432 | 4,431 | 4,420 | 4,417 | 4,465 | 4,425 | ||
Diluted | 4,520 | 4,460 | 4,445 | 4,434 | 4,432 | 4,431 | 4,420 | 4,417 | 4,465 | 4,425 | ||
[1] | Includes related party amounts of $0 and $1,313 in 2017 and 2016, respectively. See Note 13 for additional information on related party transactions. | |||||||||||
[2] | See Note 7 for summary of amounts included representing stock-based compensation expense. |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue from related parties | $ 0 | $ 1,313 |
Consolidated Statements of Comp
Consolidated Statements of Compehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (4,623) | $ (4,103) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | 617 | (853) |
Unrealized holding gain (loss) on available-for-sale securities | (1) | 10 |
Total other comprehensive income (loss) | 616 | (843) |
Comprehensive loss | $ (4,007) | $ (4,946) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Accumulated Deficit [Member] | Noncontrolling Interest [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect adjustment from adoption of accounting standard | $ 0 | $ 675 | $ (675) | ||||
Beginning balance (shares) at Dec. 31, 2015 | 4,738,000 | (322,000) | |||||
Beginning balance at Dec. 31, 2015 | 28,921 | $ 47 | $ (28,130) | 356,746 | $ (1,594) | (298,402) | $ 254 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Release of performance shares, Shares | 24,000 | ||||||
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 | (8,000) | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | (43) | (43) | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 746 | 746 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (853) | (853) | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 10 | 10 | |||||
Net loss | $ (4,103) | (4,103) | 0 | ||||
Ending balance (shares) at Dec. 31, 2016 | 4,753,654 | 4,754,000 | (322,000) | ||||
Ending balance at Dec. 31, 2016 | $ 24,678 | $ 48 | $ (28,130) | 358,123 | (2,437) | (303,180) | 254 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Release of performance shares, Shares | 137,000 | ||||||
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 | (49,000) | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | (241) | $ (1) | (240) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 1,457 | 1,457 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 617 | 617 | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (1) | (1) | |||||
Net loss | $ (4,623) | (4,623) | 0 | ||||
Ending balance (shares) at Dec. 31, 2017 | 4,842,294 | 4,842,000 | (322,000) | ||||
Ending balance at Dec. 31, 2017 | $ 21,887 | $ 48 | $ (28,130) | $ 359,339 | $ (1,821) | $ (307,803) | $ 254 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ||
Net loss | $ (4,623) | $ (4,103) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 454 | 489 |
Increase (decrease) in allowance for doubtful accounts | (3) | 6 |
Loss on disposal and write-down of fixed assets | 0 | 1 |
Increase in accrued investment income | (110) | (43) |
Stock-based compensation | 1,457 | 746 |
Adjustment to contingent consideration | 0 | (318) |
Change in operating assets and liabilities: | ||
Accounts receivable | 367 | 1,009 |
Inventories | (681) | 323 |
Deferred cost of goods sold | (628) | (20) |
Other current assets | (242) | 200 |
Accounts payable | 586 | (558) |
Accrued liabilities | 259 | (1,176) |
Deferred revenues | 1,004 | 340 |
Deferred rent | (65) | 81 |
Net cash used in operating activities | (2,225) | (3,023) |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||
Purchases of available-for-sale short-term investments | (23,875) | (23,955) |
Proceeds from maturities and sales of available‑for‑sale short‑term investments | 24,000 | 29,155 |
Change in other long-term assets | (98) | 160 |
Capital expenditures | (209) | (117) |
Net cash provided by (used in) investing activities | (182) | 5,243 |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Repurchase of common stock from employees for payment of taxes on vesting of restricted stock units and upon exercise of stock options | (240) | (43) |
Net cash used in financing activities | (240) | (43) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 105 | (65) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (2,542) | 2,112 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 9,803 | 7,691 |
End of period | 7,261 | 9,803 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 151 | 169 |
Non-cash transfer of restricted investments to available-for-sale short-term investments | $ 0 | $ 151 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 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 Santa Clara, California, and maintains offices in six 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. 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, as approximately 28.0% of revenues for the year ended December 31, 2017 , were derived from one customer, Avnet Europe Comm VA ("Avnet"), the Company's primary distributor of its IIoT products in Europe and Japan. 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. 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 (i) New Accounting Standards Recently Adopted 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 was adopted by the Company in the first quarter of fiscal year 2017 and did not have a significant impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718), which simplifies the accounting for share-based payments, including income tax consequences, accounting for forfeitures, classification of awards as either equity or liabilities, and classification on the statements of cash flows. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. During the fourth quarter of 2016, the Company elected to early adopt ASU 2016-09, with retrospective application to January 1, 2016. The primary impact of adoption was to the Company's accounting policy for forfeited equity compensation awards. Prior to the adoption of ASU 2016-09, the Company's stock-based compensation expense was calculated using an estimated forfeiture rate. Following the adoption, the Company recognizes the impact of forfeitures on stock-based compensation expense as they occur. The net cumulative effect of this change was recognized as a $675,000 reduction to retained earnings as of January 1, 2016. (ii) New Accounting Standards Not Yet Effective 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. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which superseded existing revenue recognition guidance under current U.S. GAAP. The standard is a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In doing so, among other things, companies will generally need to use more judgment and make more estimates than under the current guidance. Recently, the FASB has issued guidance clarifying certain topics such as (i) gross versus net revenue reporting, (ii) identifying performance obligations and licensing, (iii) accounting for shipping and handling fees and costs, and (iv) accounting for consideration given by a vendor to a customer. The standard will be effective for Echelon in the fiscal year beginning January 1, 2018. The standard permits two methods of adoption: (i) retrospectively to each prior reporting period presented (the full retrospective method), or (ii) retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application (the cumulative catch-up transition method). The Company will adopt the standard using the full retrospective method to restate each prior reporting period presented. In preparation for the adoption, the Company has implemented internal controls to enable the preparation of financial information and has reached conclusions on key accounting assessments related to the standard. The Company currently believes the most significant impact of adopting the new standard will relate to its accounting for sales made to distributors under agreements that contain a limited right to return unsold products and price adjustment provisions. Under the existing revenue guidance, the Company has historically concluded that the price to these distributors is not fixed or determinable at the time it delivers products to them. Accordingly, revenue from sales to these distributors has not historically been recognized until the distributor resells the product. By contrast, under the new standard, the Company will recognize revenue, including estimates for applicable variable consideration, predominately at the time of shipment to these distributors, thereby accelerating the timing of revenue for products sold through the distribution channel. The Company does not currently capitalize costs to obtain customer contracts such as commission expenses, nor does it expect to capitalize such costs under the new standard. Adoption of the standard will result in the recognition of additional revenue of $274,000 for the year ended December 31, 2017 . In addition, adoption of the standard will result in a reduction of deferred revenues of $3.0 million as of December 31, 2017 , driven by the recognition of revenues associated with on-hand distributor inventory as of that date, the revenue for which was deferred under previous guidance; a decrease of deferred cost of goods sold of $728,000 as of December 31, 2017 , again driven by the recognition of revenue that was deferred under previous guidance; and a decrease in accounts receivable of $395,000 as of December 31, 2017 , driven by the incremental reserves required for estimated price adjustments that will be issued to the distributors in the future based on the additional revenue recognized under the new guidance. See Expected Impacts to Reported Results below for the impact of adoption of the standard on our consolidated financial statements. Expected Impacts to Reported Results Adoption of the new revenue recognition guidance (discussed above) is expected to impact our reported results as follows (in thousands, except earnings per share amounts): Year ended December 31, 2017 As Reported New Revenue Standard Adjustment As Adjusted Statement of Operations: Revenue $ 31,667 $ 274 31,941 Net loss (4,623 ) 204 (4,419 ) Basic and diluted loss per share (1.04 ) 0.05 (0.99 ) December 31, 2017 As Reported New Revenue Standard Adjustment As Adjusted Balance Sheets: Accounts receivable, net $ 2,721 $ (395 ) $ 2,326 Deferred cost of goods sold 1,767 (728 ) 1,039 Deferred revenues 4,805 (2,963 ) 1,842 Stockholders' equity 21,887 1,840 23,727 Current 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 certain 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 . 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 granted to employees 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 7 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 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, 2017 , 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, 2017 and 2016 . Inventories Inventories are stated at the lower of cost (first‑in, first‑out) or net realizable value 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 $ 148 $ 148 Finished goods 3,103 2,422 $ 3,251 $ 2,570 Impairment of Long-Lived Assets 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 years ended December 31, 2017 and December 31, 2016 , the Company recognized no impairments of long-lived assets. 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 two years ended December 31, 2017 , 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 $ 1,088 $ 1,299 Warranty reserve 142 118 Restructuring charges 185 273 Other accrued liabilities 463 484 $ 1,878 $ 2,174 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. Equity transactions are translated using historical exchange rates. 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, 2017 and 2016 , 0.0% and 26.9% , respectively, of the Company's total accounts receivable balance were due from Avnet Europe Comm VA (refer to Note 8 - Significant Customers for a discussion of revenues generated from the Company's significant customers). 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. For the years ended December 31, 2017 and 2016 , 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”), and restricted stock awards (“RSAs”) excluded from this calculation for the years ended December 31, 2017 and 2016 was 981,628 and 837,035 , respectively. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company takes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon effective settlement. The Company re-evaluates its income tax positions on a quarterly basis to consider factors such as changes in facts or circumstances, changes in or interpretations of tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in recognition of a tax benefit or an additional charge to the tax provision. Interest and penalties on unrecognized tax benefits are classified as income tax expense. Comprehensive Income (Loss) Comprehensive income (loss) for the Company consists of net loss plus the effect of unrealized holding gains or losses on investments classified as available-for-sale and foreign currency translation adjustments. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Financial Assets and Liabilities 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, at fair value. 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, 2017 (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) $ 4,515 $ 4,515 $ — $ — U.S. government securities (2) 13,217 — 13,217 — Total $ 17,732 $ 4,515 $ 13,217 $ — 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, 2016 (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) $ 4,513 $ 4,513 $ — $ — U.S. government securities (2) 13,233 — 13,233 — Total $ 17,746 $ 4,513 $ 13,233 $ — (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, 2017 and 2016 . As of December 31, 2017 , the Company’s available-for-sale securities had contractual maturities of 6 months and an average remaining term to maturity of 3 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, 2017 . As of December 31, 2017 , 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 securities $ 11,970 $ 11,967 $ — $ 3 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, 2016 (in thousands): Amortized Cost Aggregate Fair Value Unrealized Holding Gains Unrealized Holding Losses U.S. government securities $ 11,984 $ 11,983 $ — $ 1 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 in the Company's consolidated statements of operations. Non-Financial Assets Measured at Fair Value on a Nonrecurring Basis The majority of the Company's non-financial assets and liabilities, which have historically included 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment A summary of property and equipment, net as of December 31, 2017 and 2016 is as follows (in thousands): December 31, 2017 December 31, 2016 Computer and other equipment $ 3,559 $ 3,370 Software 3,137 3,130 Furniture and fixtures 117 110 Leasehold improvements 200 194 7,013 6,804 Less: Accumulated depreciation and amortization (6,555 ) (6,359 ) Property and equipment, net $ 458 $ 445 Property and equipment are stated at cost. Depreciation is provided using the straight-line method as follows: • Computer equipment and related software, other equipment, and furniture and fixtures are depreciated over their estimated useful lives of two to five years; • Leasehold improvements are depreciated over the shorter of the remaining lease term or estimated useful lives; and • Certain telecommunications equipment is depreciated over its estimated useful life of 10 years. |
Acquisitions Acquisitions
Acquisitions Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions [Abstract] | |
Acquisitions | 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 assets acquired and liabilities assumed are reflected in the Company’s consolidated balance sheet at December 31, 2017 , and the results of operations of Lumewave are included in the consolidated statements 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 are being 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 was 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 were recorded as a liability and were remeasured each reporting period, with any change in their fair values recorded to earnings. The equity component of the contingent consideration was ultimately intended to be settled by issuing additional equity upon final determination of the targets being achieved.The number of shares to be issued was to 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 , the fair value of the contingent consideration was $318,000 , and was recorded in accrued liabilities in the Company's consolidated balance sheets. 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. During the quarter ended March 31, 2016, the contingent consideration decreased by approximately $318,000 . This reduction was due to the Company's determination that it was no longer probable that the minimum targets specified in the purchase agreement would be met due to sales force transitions and scheduling delays for some of our larger lighting projects. Accordingly, the Company reduced the associated liability to $0 as of March 31, 2016 . This resulted in a $318,000 adjustment, which was recorded as a reduction to general and administrative expenses in the Company's consolidated statements of operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Foreign currency translation adjustment (Amount in thousands) Unrealized gain (loss) on available-for-sale securities (Amount in thousands) Accumulated Other Comprehensive Loss (Amount in thousands) Beginning balance at December 31, 2015 $ (1,582 ) $ (12 ) $ (1,594 ) Change during the year (853 ) 10 (843 ) Ending balance at December 31, 2016 $ (2,435 ) $ (2 ) $ (2,437 ) Change during the year 617 (1 ) 616 Ending balance at December 31, 2017 $ (1,818 ) $ (3 ) $ (1,821 ) |
Stockholders' Equity and Employ
Stockholders' Equity and Employee Stock Option Plans | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity and Employee Stock Option Plans | Stockholders’ Equity and Employee Stock Option Plans (a) Tax Benefit Preservation Plan On April 22, 2016, the Company announced that its Board of Directors (the “Board”) had adopted a Tax Benefit Preservation Plan (the “Tax Plan”) pursuant to which the Board authorized and declared a dividend distribution of one right (a “Right”) for each outstanding share of common stock of the Company to stockholders of record as of the close of business on May 6, 2016. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Participating Preferred Stock, par value $0.01 per share, exercisable, except in certain circumstances, in the event that a person or group of affiliated or associated persons obtain beneficial ownership of 4.99% or more of the outstanding shares of the Company's common stock. The complete terms of the Rights are set forth in the Tax Plan, dated as of April 22, 2016, between the Company and Computershare Inc., as rights agent, and filed with the Securities and Exchange Commission on April 26, 2016. By adopting the Plan, the Board is helping to preserve the value of certain deferred tax benefits, including those generated by net operating losses (collectively, the “Tax Benefits”), which could be lost in the event of an “ownership change” as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). The Plan reduces the likelihood that changes in the Company’s investor base will have the unintended effect of limiting the Company’s use of its Tax Benefits. The Board has established procedures to consider requests to exempt certain acquisitions of the Company’s securities from the Plan if the Board determines that it is in the best interests of the Company. Until they become exercisable, the Rights are inseparable from and trade with the Company's shares of common stock. The Rights have a de minimus fair value. The Tax Plan expires April 25, 2019 . (b) Stock Option Programs The Company grants equity compensation awards under the 2016 Equity Incentive Plan (the "2016 Plan") and the 2016 Inducement Equity Incentive Plan (the "2016 Inducement Plan"). Prior to adoption of these Plans in 2016, the Company granted equity compensation awards under the 1997 Stock Plan (the “1997 Plan”), which was terminated as of October 4, 2016 . A more detailed description of each of the Plans 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. 2016 Equity Incentive Plan In October 2016, the Company adopted the 2016 Equity Incentive Plan (the "2016 Plan") for employees, officers, directors, and non-employee consultants. In setting the initial share reserve under the 2016 Plan of 500,000 shares, the Company considered the number of outstanding awards and forecasted grants under the Plan. In addition to the initial share reserve of 500,000 shares, the 2016 Plan also includes any shares subject to awards under the 1997 Plan that, after the termination of the 1997 Plan, expire or otherwise terminate without having vested or without having been exercised in full and any shares issued pursuant to awards granted under the 1997 Plan that are forfeited to or repurchased by the Company. As of December 31, 2017 , there were a total of 1.1 million shares of Common Stock reserved for issuance under the 2016 Plan, of which 892,629 were subject to outstanding awards and 187,982 shares remained available for new awards under the Plan. Stock options granted under the 2016 Plan generally have a term of 10 years, and the exercise price of said stock options is determined by the Board of Directors (or a Committee of the Board of Directors), and, except for limited circumstances, 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). RSUs, Performance Units, and Performance Shares issued by the Company under the 2016 Plan generally vest ratably over 2 to 3 years. In addition, certain of these awards have additional financial-based performance requirements that must be met before vesting can occur. Awards 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. The 2016 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 may (but are not required to) be subject to vesting conditions, and the shares acquired may not be transferred by the participant until the vesting conditions (if any) are satisfied. 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 2016 Plan allows for the issuance of stock appreciation rights (“SARs”), restricted stock units (“RSUs”), and Performance Units and Performance Shares. 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. 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. RSUs, Performance Units, and Performance Shares 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. 2016 Inducement Equity Incentive Plan On April 20, 2016, the Company filed a Registration Statement on Form S-8 with the Securities and Exchange Commission to register 250,000 shares of common stock to be issued pursuant to the 2016 Inducement Plan. The purpose of the Inducement Plan is to facilitate the Company's ability to attract and retain the best available new hires by providing an inducement to such individual entering into employment with the Company or subsidiary of the Company. The Inducement Plan permits the grant of nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, and performance shares, each with terms similar to those governed by the previously discussed 2016 Plan. Each award under the Inducement Plan is intended to qualify as an employment inducement award under NASDAQ Listing Rule 5635(c)(4). As of December 31, 2017 , there were a total of 235,000 shares of Common Stock reserved for issuance under the 2016 Inducement Plan, of which 89,000 were subject to outstanding awards and 146,000 shares remained available for new awards under the Plan. 1997 Stock Plan (terminated October 4, 2016) 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 discussed above, the 1997 Plan was terminated on October 4, 2016 . As of the termination date, all outstanding awards granted under the 1997 Plan were transferred to the 2016 Plan. However, they will continue to be governed by the terms of the 1997 Plan. Under the 1997 Plan, incentive stock options to purchase shares of common stock were eligible to 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 were 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). Options generally vested ratably over four years . The 1997 Plan also allowed for the issuance of stock purchase rights and options that were immediately exercisable through execution of a restricted stock purchase agreement. Shares purchased pursuant to a stock purchase agreement generally vested 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 allowed 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. (c) Stock Award Activity The following table summarizes stock award activity under all plans for the years ended December 31, 2017 and 2016 : Options Outstanding Shares Available for Grant Number Outstanding Weighted-Average Exercise Price Per Share BALANCE AT DECEMBER 31, 2015 517,505 285,536 $ 24.72 New plan shares approved 750,000 — — Unissued shares eliminated from plan (13,346 ) — — Options granted (275,250 ) 275,250 5.07 RSUs granted (460,209 ) — — Options and stock appreciation rights cancelled 54,914 (54,914 ) 25.50 RSUs cancelled 29,211 — — BALANCE AT DECEMBER 31, 2016 602,825 505,872 $ 13.94 Options granted (20,000 ) 20,000 7.18 RSUs granted (454,783 ) — — Options and stock appreciation rights cancelled 100,150 (100,150 ) 23.92 RSUs cancelled 105,790 — — Balance at DECEMBER 31, 2017 333,982 425,722 $ 11.28 The total intrinsic value of options and SARs exercised during the years ended December 31, 2017 and 2016 was approximately $0 and $0 , respectively, as no options or SARs were exercised during this time. 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, 2017 and 2016 : Number of Shares Nonvested and Outstanding Weighted-Average Grant Date Fair-Value BALANCE AT DECEMBER 31, 2015 64,714 $ 14.45 RSUs granted 307,770 5.21 RSUs vested and released (23,993 ) 14.31 RSUs cancelled (17,328 ) 17.06 BALANCE AT DECEMBER 31, 2016 331,163 $ 5.74 RSUs granted 454,783 4.88 RSUs vested and released (136,928 ) 6.22 RSUs cancelled (93,112 ) 5.31 BALANCE AT DECEMBER 31, 2017 555,906 $ 4.99 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, 2017 and 2016 was approximately $685,400 and $118,000 , 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, 2017 , the number of RSUs and RSAs outstanding was 555,906 , with a total intrinsic value of $3.1 million . The intrinsic value of the outstanding RSUs and RSAs is calculated based on the market value of the Company's closing stock price of $5.54 as of December 29, 2017 , the last market trading day of 2017. The following table provides additional information for significant ranges of outstanding and exercisable stock options and SARs as of December 31, 2017 : Exercise Price Range Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price per Share Aggregate Intrinsic Value $4.51 20,000 8.38 $ 4.51 $ 20,600 5.22 182,000 8.74 5.22 58,240 5.45 - 9.10 31,500 8.81 7.01 675 9.11 73,000 7.45 9.11 — 9.15 - 23.70 81,590 6.03 21.29 — $24.20 - $32.50 37,632 4.77 30.24 — Outstanding 425,722 7.64 $ 11.28 $ 79,515 Vested and expected to vest 418,607 7.64 $ 11.35 $ 77,790 Exercisable 345,103 7.43 $ 12.41 $ 57,168 The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company's closing stock price of $5.54 as of December 29, 2017 , 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, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation (a) Valuation of Options, SARs, and RSUs Granted The Company has elected to use the Black-Scholes-Merton ("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 granted during the years ended December 31, 2017 and 2016 was $3.09 and $2.55 , respectively, and was determined using the following weighted average assumptions: Year ended December 31, 2017 2016 Expected dividend yield —% —% Risk-free interest rate 1.7% 1.2% Expected volatility 55.9% 58.1% Expected term (in years) 3.75 5.12 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 10 -year term option grants made during 2016 and 2017, as the Company does not have relevant and adequate exercise history for such options. 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, 2017 and 2016, 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, 2017 , awards granted to non-employee consultants and the related share-based payment expense were not significant. (b) Equity Compensation Expense for RSUs and RSAs with Financial or other Performance-Based Vesting Requirements As of December 31, 2017 , there were 143,283 non-vested RSUs that were granted in 2017 that 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, 2017 (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 January 2017 143,283 $ 721 $ 132 $ 589 December 2017 Through December 31, 2017, cumulative compensation expense of $132,000 associated with the 143,283 unvested RSUs granted in January 2017 had been recognized. From the date of grant through December 31, 2017, the Company believed it was probable that the performance requirements associated with certain of these awards would be achieved and therefore recognized expense on those specific awards. However, as of March 31, June 30, and September 30, 2017, the Company determined that separate performance conditions related to the remainder of the awards granted in January 2017 was improbable of achievement. Accordingly, no compensation expense has been recognized on these additional awards. As the performance conditions required for the vesting of these additional awards were not met as of December 31, 2017, the final date that the performance conditions could be met, the Company expects approximately 114,379 awards will expire unvested in March 2018 and will be returned to the Plan. c) Expense Allocation As of December 31, 2017 , total compensation cost related to non-vested stock options and other equity based awards not yet recognized was $1.6 million , which is expected to be recognized over the next 0.9 years on a weighted-average basis. The following table summarizes stock-based compensation expense for the years ended December 31, 2017 and 2016 and its allocation within the consolidated statements of operations (in thousands): Year ended 31 December, 2017 2016 Cost of revenues $ 158 $ 48 Product development 475 173 Sales and marketing (20 ) 57 General and administrative 844 468 Total stock based compensation expense related to stock options and share awards 1,457 746 Tax benefit — — Stock-based compensation expense related to stock options and share awards, net of tax $ 1,457 $ 746 As of December 31, 2017 , and 2016 , stock-based compensation expense capitalized as part of the cost of inventory and deferred cost of goods sold was immaterial. |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 ,the Company had one customer 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 Japan. For the years ended December 31, 2017 and 2016 , the percentage of the Company’s revenues attributable to sales made to this customer was as follows: Year ended December 31, 2017 2016 Avnet 28.0% 28.7% 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 renews automatically on May 31 of each year unless either party, in its sole discretion, gives notice of its desire not to renew at least 90 days before the expiration of the then current term. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The Company's identifiable intangible assets as of December 31, 2017 , relate to the acquisition of Lumewave, Inc. in August 2014. 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, 2017 and 2016 are as follows (in thousands): Amount Balance as of December 31, 2015 $ 1,183 Amortization (230 ) Balance as of December 31, 2016 953 Amortization (228 ) Balance as of December 31, 2017 725 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, 2017 (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 $ (414 ) $ 386 3.13 Customer relationships 500 (258 ) 242 3.13 Trade names 200 (103 ) 97 3.13 Total $ 1,500 $ (775 ) $ 725 3.13 The following table presents the amortization of finite-lived intangible assets included in the consolidated statements of operations for the years ended December 31, 2017 and 2016 (in thousands): Year ended December 31, 2017 2016 Cost of revenues $ 121 $ 123 Operating expenses 107 107 Total $ 228 $ 230 The following table presents the estimated future amortization of finite-lived intangible assets as of December 31, 2017 (in thousands): Estimated Future Amortization 2018 229 2019 229 2020 229 2021 38 Total $ 725 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , future minimum lease payments under all operating leases were as follows (in thousands): 2018 $ 950 2019 483 2020 $ 16 2021 $ 12 Total payments $ 1,461 Rent expense for all operating leases was approximately $964,000 for 2017 and $994,000 for 2016. 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, 2017 , the Company has accrued approximately $135,000 of deferred rent related to these agreements, of which approximately $72,000 is reflected in accrued liabilities while the remainder is reflected in other long-term liabilities in the accompanying consolidated balance sheets. As of December 31, 2016 , the Company had accrued approximately $193,000 of deferred rent related to its lease agreements, of which approximately $59,000 is reflected in current liabilities while the remainder is reflected in other long-term liabilities in the accompanying consolidated balance sheets. (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 $260,000 and $264,000 for the years ended December 31, 2017 and 2016 , 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, 2017 , 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, 2017 , 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 The Company maintains an operating credit line of $1.0 million with its primary bank for company credit card purchases. This line of credit is secured by a collateral of the first priority on $1.3 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for (benefit from) income taxes attributable to continuing operations is based upon loss from operations before provision for income taxes as follows (in thousands): Year ended December 31, 2017 2016 Domestic $ (5,106 ) $ (4,632 ) Foreign 455 711 $ (4,651 ) $ (3,921 ) The provision for (benefit from) income taxes consists of the following (in thousands): Year ended December 31, 2017 2016 Federal: Current $ (82 ) $ — Deferred — — Total federal benefit (82 ) — State: Current 1 18 Deferred — — Total state provision 1 18 Foreign: Current 53 164 Deferred — — Total foreign provision 53 164 Total income tax expense (benefit) $ (28 ) $ 182 The provision for (benefit from) 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, 2017 2016 U.S. Federal tax benefit at statutory rate $ (1,629 ) $ (1,372 ) State tax benefit, net of federal benefit (187 ) (171 ) U.S.-Foreign rate differential (113 ) (96 ) Change in valuation allowance (33,001 ) 939 Rate differential impact - Tax Cuts and Jobs Act 34,679 — Research and development credits 281 233 Permanent items 30 657 Others (88 ) (8 ) Total income tax expense (benefit) $ (28 ) $ 182 As of December 31, 2017 and 2016 , 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, 2017 2016 Deferred tax assets: Net operating loss carry forwards $ 62,635 $ 100,378 Tax credit carry forwards 17,078 19,248 Fixed and intangible assets 266 597 Capitalized research and development costs 70 58 Stock based compensation and other reserves and allowances 2,131 3,445 Gross deferred income tax assets 82,180 123,726 Valuation allowance (82,180 ) (123,726 ) Net deferred income tax assets $ — $ — As of December 31, 2017 , 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 2016. Through the date of the analysis, the Company did not experience any ownership change that would limit its net operating loss and credit carry forwards. The Company's net operating loss and credit carry forwards may be limited if an ownership change has occurred since the analysis was performed or if one were to occur 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, 2017 , the Company had net operating loss carry forwards of $261.2 million for federal income tax reporting purposes and $107.3 million for state income tax reporting purposes, which expire at various dates through 2037 . In addition, as of December 31, 2017 , the Company had approximately $11.4 million and $16.5 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 2037 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. On December 22, 2017, the Tax Cuts and Jobs Act ("the Act") was signed into law. Among other changes is a permanent reduction in the federal corporate income tax rate from 35% to 21%, effective January 1, 2018. As a result of the change in the corporate income tax rate, the Company revalued its net deferred tax asset at December 31, 2017 , which resulted in a reduction of the value of the Company's net deferred tax asset of approximately $34.7 million . This reduction was offset by a change in the Company's valuation allowance, thus resulting in no impact to the Company's tax expense for the year ended December 31, 2017 . 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. The Act provides for a one-time "deemed repatriation" of accumulated foreign earnings for the year ended December 31, 2017 . The Company does not expect that the future foreign earnings will be subject to U.S. federal income tax since the Company is in a net earnings and profits deficit position and, as noted earlier, intents to permanently reinvest such earnings outside the U.S. indefinitely. The following is a rollforward of the Company's unrecognized tax benefits related to uncertain tax positions for the years ended December 31, 2017 and 2016 (in thousands): Year ended December 31, 2017 2016 Balance as of the beginning of the year $ 9,216 $ 9,066 Tax positions related to current year: Additions 165 152 Reductions (9 ) (14 ) Tax positions related to prior years: Additions 26 80 Reductions (6 ) (4 ) Settlements — — Lapses in statute of limitations (48 ) (64 ) Balance as of the end of the year $ 9,344 $ 9,216 Included in the balance of total unrecognized tax benefits at December 31, 2017 are potential benefits of $332,000 , which if recognized, would affect the effective rate on income from continuing operations. As of December 31, 2017 , the Company had accrued interest and penalties related to the uncertain tax benefits of approximately $56,000 . During 2017 , the Company decreased the prior year balance by $6,000 due to lapses in statutes of limitations in certain foreign jurisdictions. During 2016 , the Company decreased the prior year balance by $12,000 , again due to lapses in statutes of limitations. 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 1998 remain open to examination by federal and most state tax authorities due to certain net operating loss and credit carryforward positions. In the foreign jurisdictions, the number of tax years open to examination by local tax authorities ranges from three to six years. |
Warranty Reserves
Warranty Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Warranty Reserves [Abstract] | |
Warranty Reserves | 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 $350,000 as of December 31, 2017 and $245,000 as of December 31, 2016 . Of the $350,000 balance as of December 31, 2017 , $142,000 was included in accrued liabilities in the Company's consolidated balance sheet, with the remainder being included in other long-term liabilities. Of the $245,000 balance as of December 31, 2016 , $118,000 was included in accrued liabilities with the remainder being included in other long-term liabilities. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Parties | 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 . To the Company’s knowledge, Enel has disposed of 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 provided 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 March 2016. During the year ended December 31, 2017 , the Company generated no revenue from products and services sold to Enel and its designated manufacturers. For the year ended December 31, 2016 , the Company recognized revenue from products and services sold to Enel and its designated manufacturers of approximately $ 1.3 million . As of December 31, 2017 and 2016 , none of the Company’s total accounts receivable balance related to amounts owed by Enel and its designated manufacturers. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the fourth quarter of 2016, the Company undertook restructuring actions affecting approximately 7 employees to be terminated between October 2016 and November 2018, 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 $286,000 related to termination benefits for these personnel during the year ended December 31, 2016. The following table sets forth a summary of restructuring activities related to the Company's 2016 restructuring program in 2017 (in thousands): December 31, 2016 Costs Incurred Cash Payments December 31, 2017 Termination benefits $ 273 $ — $ (88 ) $ 185 The following table sets forth a summary of restructuring activities related to the Company's 2016 restructuring program in 2016 (in thousands): December 31, 2015 Costs Incurred Cash Payments December 31, 2016 Termination benefits $ — $ 286 $ (13 ) $ 273 Accrued restructuring charges as of December 31, 2017 comprise the remaining liability balance from the 2016 restructuring and are reflected in accrued liabilities on the Company’s consolidated balance sheet as of December 31, 2017 . |
Valuation and Qualifying accoun
Valuation and Qualifying accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying accounts | 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, 2017: Allowance for Doubtful Accounts $ 36 $ (6 ) $ — $ 30 Allowance for Customer Returns and Sales Credits $ 528 $ 2,845 $ (3,121 ) $ 252 Year Ended December 31, 2016: Allowance for Doubtful Accounts $ 31 $ 5 $ — $ 36 Allowance for Customer Returns and Sales Credits $ 490 $ 3,713 $ (3,675 ) $ 528 |
Segment Disclosure
Segment Disclosure | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Disclosure | 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). 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, 2017 and December 31, 2016 , long-lived assets of approximately $2.1 million and $2.2 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, 2017 and 2016 is as follows (in thousands): Year ended December 31, 2017 2016 Americas United States $ 12,395 $ 10,309 Other Americas 921 1,093 Total Americas 13,316 11,402 EMEA Germany 8,034 8,749 Other EMEA 2,731 5,366 Total EMEA 10,765 14,115 APJ China 2,443 2,209 Other APJ 5,143 4,659 Total APJ 7,586 6,868 Total $ 31,667 $ 32,385 For information regarding the Company’s major customers, please refer to Note 8, Significant Customers. |
Joint Venture
Joint Venture | 12 Months Ended |
Dec. 31, 2017 | |
Less Than Wholly Owned Subsidiary [Abstract] | |
Joint Venture | 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, 2017 , and for the two 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, 2017 and 2016 . Net loss attributable to the noncontrolling interest in Echelon-Holley was $0 during the years ended December 31, 2017 and 2016 . As of December 31, 2017 , 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 its 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 in the Company's consolidated 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 were presented as part of discontinued operations in the consolidated statement of operations for the year ended December 31, 2014. 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. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED): The following tables set forth certain consolidated statements of operations data for each of the quarters in 2017 and 2016 . 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 2017 September 2017 June March December 2016 September 2016 June March Consolidated Statement of Operations Data: Revenues $ 8,030 $ 7,817 $ 8,021 $ 7,799 $ 7,498 $ 8,179 $ 8,061 $ 8,647 Cost of revenues 3,858 3,337 3,495 3,326 3,375 3,707 3,415 3,805 Gross profit 4,172 4,480 4,526 4,473 4,123 4,472 4,646 4,842 Operating expenses: Product development 2,551 2,280 2,255 2,227 2,119 1,963 1,985 2,193 Sales and marketing 1,368 1,239 1,463 1,462 1,638 1,570 1,679 1,302 General and administrative 1,450 1,656 1,929 1,924 1,782 2,087 2,197 2,011 Restructuring charges — — — — 286 — — — Total operating expenses 5,369 5,175 5,647 5,613 5,825 5,620 5,861 5,506 Loss from operations (1,197 ) (695 ) (1,121 ) (1,140 ) (1,702 ) (1,148 ) (1,215 ) (664 ) Interest and other income (expense), net (58 ) (155 ) (220 ) (65 ) 567 (57 ) 503 (205 ) Loss before provision for income taxes (1,255 ) (850 ) (1,341 ) (1,205 ) (1,135 ) (1,205 ) (712 ) (869 ) Income tax expense (benefit) (53 ) 2 29 (6 ) 102 23 51 6 Net loss $ (1,202 ) $ (852 ) $ (1,370 ) $ (1,199 ) $ (1,237 ) $ (1,228 ) $ (763 ) $ (875 ) Basic and diluted net loss per share $ (0.27 ) $ (0.19 ) $ (0.31 ) $ (0.27 ) $ (0.28 ) $ (0.28 ) $ (0.17 ) $ (0.20 ) Shares used in net loss per share calculation: Basic 4,520 4,460 4,445 4,434 4,432 4,431 4,420 4,417 Diluted 4,520 4,460 4,445 4,434 4,432 4,431 4,420 4,417 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Business Description and Accounting Policies | 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. |
Risks and uncertainties | 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, as approximately 28.0% of revenues for the year ended December 31, 2017 , were derived from one customer, Avnet Europe Comm VA ("Avnet"), the Company's primary distributor of its IIoT products in Europe and Japan. 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. |
Use of Estimates, Policy | 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 | Recently Issued Accounting Standards (i) New Accounting Standards Recently Adopted 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 was adopted by the Company in the first quarter of fiscal year 2017 and did not have a significant impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718), which simplifies the accounting for share-based payments, including income tax consequences, accounting for forfeitures, classification of awards as either equity or liabilities, and classification on the statements of cash flows. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. During the fourth quarter of 2016, the Company elected to early adopt ASU 2016-09, with retrospective application to January 1, 2016. The primary impact of adoption was to the Company's accounting policy for forfeited equity compensation awards. Prior to the adoption of ASU 2016-09, the Company's stock-based compensation expense was calculated using an estimated forfeiture rate. Following the adoption, the Company recognizes the impact of forfeitures on stock-based compensation expense as they occur. The net cumulative effect of this change was recognized as a $675,000 reduction to retained earnings as of January 1, 2016. (ii) New Accounting Standards Not Yet Effective 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. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which superseded existing revenue recognition guidance under current U.S. GAAP. The standard is a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In doing so, among other things, companies will generally need to use more judgment and make more estimates than under the current guidance. Recently, the FASB has issued guidance clarifying certain topics such as (i) gross versus net revenue reporting, (ii) identifying performance obligations and licensing, (iii) accounting for shipping and handling fees and costs, and (iv) accounting for consideration given by a vendor to a customer. The standard will be effective for Echelon in the fiscal year beginning January 1, 2018. The standard permits two methods of adoption: (i) retrospectively to each prior reporting period presented (the full retrospective method), or (ii) retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application (the cumulative catch-up transition method). The Company will adopt the standard using the full retrospective method to restate each prior reporting period presented. In preparation for the adoption, the Company has implemented internal controls to enable the preparation of financial information and has reached conclusions on key accounting assessments related to the standard. The Company currently believes the most significant impact of adopting the new standard will relate to its accounting for sales made to distributors under agreements that contain a limited right to return unsold products and price adjustment provisions. Under the existing revenue guidance, the Company has historically concluded that the price to these distributors is not fixed or determinable at the time it delivers products to them. Accordingly, revenue from sales to these distributors has not historically been recognized until the distributor resells the product. By contrast, under the new standard, the Company will recognize revenue, including estimates for applicable variable consideration, predominately at the time of shipment to these distributors, thereby accelerating the timing of revenue for products sold through the distribution channel. The Company does not currently capitalize costs to obtain customer contracts such as commission expenses, nor does it expect to capitalize such costs under the new standard. Adoption of the standard will result in the recognition of additional revenue of $274,000 for the year ended December 31, 2017 . In addition, adoption of the standard will result in a reduction of deferred revenues of $3.0 million as of December 31, 2017 , driven by the recognition of revenues associated with on-hand distributor inventory as of that date, the revenue for which was deferred under previous guidance; a decrease of deferred cost of goods sold of $728,000 as of December 31, 2017 , again driven by the recognition of revenue that was deferred under previous guidance; and a decrease in accounts receivable of $395,000 as of December 31, 2017 , driven by the incremental reserves required for estimated price adjustments that will be issued to the distributors in the future based on the additional revenue recognized under the new guidance. See Expected Impacts to Reported Results below for the impact of adoption of the standard on our consolidated financial statements. Expected Impacts to Reported Results Adoption of the new revenue recognition guidance (discussed above) is expected to impact our reported results as follows (in thousands, except earnings per share amounts): Year ended December 31, 2017 As Reported New Revenue Standard Adjustment As Adjusted Statement of Operations: Revenue $ 31,667 $ 274 31,941 Net loss (4,623 ) 204 (4,419 ) Basic and diluted loss per share (1.04 ) 0.05 (0.99 ) December 31, 2017 As Reported New Revenue Standard Adjustment As Adjusted Balance Sheets: Accounts receivable, net $ 2,721 $ (395 ) $ 2,326 Deferred cost of goods sold 1,767 (728 ) 1,039 Deferred revenues 4,805 (2,963 ) 1,842 Stockholders' equity 21,887 1,840 23,727 |
Revenue Recognition, Policy | 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 certain 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 . |
Deferred Revenue and Deferred Cost of Goods Sold | 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 | 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 granted to employees 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 7 of these Notes to Consolidated Financial Statements. |
Cash and Cash Equivalents, Policy | 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 | 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 loss. |
Fair Value of Financial Instruments, Policy | 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, 2017 , 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, 2017 and 2016 . |
Inventory, Policy | Inventories Inventories are stated at the lower of cost (first‑in, first‑out) or net realizable value 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 | Impairment of Long-Lived Assets 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 years ended December 31, 2017 and December 31, 2016 , the Company recognized no impairments of long-lived assets. |
Software to be Sold, Leased, or Otherwise Marketed, Policy | 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 two years ended December 31, 2017 , 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 | Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, December 31, Accrued payroll and related costs $ 1,088 $ 1,299 Warranty reserve 142 118 Restructuring charges 185 273 Other accrued liabilities 463 484 $ 1,878 $ 2,174 |
Foreign Currency Transactions and Translations Policy | 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. Equity transactions are translated using historical exchange rates. 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 | 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, 2017 and 2016 , 0.0% and 26.9% , respectively, of the Company's total accounts receivable balance were due from Avnet Europe Comm VA (refer to Note 8 - Significant Customers for a discussion of revenues generated from the Company's significant customers). 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 | 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. For the years ended December 31, 2017 and 2016 , 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”), and restricted stock awards (“RSAs”) excluded from this calculation for the years ended December 31, 2017 and 2016 was 981,628 and 837,035 , respectively. |
Income Tax, Policy | 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 | 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 Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Adoption of the new revenue recognition guidance (discussed above) is expected to impact our reported results as follows (in thousands, except earnings per share amounts): Year ended December 31, 2017 As Reported New Revenue Standard Adjustment As Adjusted Statement of Operations: Revenue $ 31,667 $ 274 31,941 Net loss (4,623 ) 204 (4,419 ) Basic and diluted loss per share (1.04 ) 0.05 (0.99 ) December 31, 2017 As Reported New Revenue Standard Adjustment As Adjusted Balance Sheets: Accounts receivable, net $ 2,721 $ (395 ) $ 2,326 Deferred cost of goods sold 1,767 (728 ) 1,039 Deferred revenues 4,805 (2,963 ) 1,842 Stockholders' equity 21,887 1,840 23,727 |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following (in thousands): December 31, December 31, Purchased materials $ 148 $ 148 Finished goods 3,103 2,422 $ 3,251 $ 2,570 |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consist of the following (in thousands): December 31, December 31, Accrued payroll and related costs $ 1,088 $ 1,299 Warranty reserve 142 118 Restructuring charges 185 273 Other accrued liabilities 463 484 $ 1,878 $ 2,174 |
Significant Accounts Receivable [Table Text Block] | As of December 31, 2017 and 2016 , 0.0% and 26.9% , respectively, of the Company's total accounts receivable balance were due from Avnet Europe Comm VA (refer to Note 8 - Significant Customers for a discussion of revenues generated from the Company's significant customers). |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value of asset measured on a recurring basis | The fair value of the Company’s financial assets measured at fair value on a recurring basis was determined using the following inputs at December 31, 2017 (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) $ 4,515 $ 4,515 $ — $ — U.S. government securities (2) 13,217 — 13,217 — Total $ 17,732 $ 4,515 $ 13,217 $ — 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, 2016 (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) $ 4,513 $ 4,513 $ — $ — U.S. government securities (2) 13,233 — 13,233 — Total $ 17,746 $ 4,513 $ 13,233 $ — (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 |
Fair value of short term investment unrealized holdings and gains | As of December 31, 2017 , the Company’s available-for-sale securities had contractual maturities of 6 months and an average remaining term to maturity of 3 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, 2017 . As of December 31, 2017 , 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 securities $ 11,970 $ 11,967 $ — $ 3 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, 2016 (in thousands): Amortized Cost Aggregate Fair Value Unrealized Holding Gains Unrealized Holding Losses U.S. government securities $ 11,984 $ 11,983 $ — $ 1 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | A summary of property and equipment, net as of December 31, 2017 and 2016 is as follows (in thousands): December 31, 2017 December 31, 2016 Computer and other equipment $ 3,559 $ 3,370 Software 3,137 3,130 Furniture and fixtures 117 110 Leasehold improvements 200 194 7,013 6,804 Less: Accumulated depreciation and amortization (6,555 ) (6,359 ) Property and equipment, net $ 458 $ 445 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 Loss (Amount in thousands) Beginning balance at December 31, 2015 $ (1,582 ) $ (12 ) $ (1,594 ) Change during the year (853 ) 10 (843 ) Ending balance at December 31, 2016 $ (2,435 ) $ (2 ) $ (2,437 ) Change during the year 617 (1 ) 616 Ending balance at December 31, 2017 $ (1,818 ) $ (3 ) $ (1,821 ) |
Stockholders' Equity and Empl33
Stockholders' Equity and Employee Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 : Options Outstanding Shares Available for Grant Number Outstanding Weighted-Average Exercise Price Per Share BALANCE AT DECEMBER 31, 2015 517,505 285,536 $ 24.72 New plan shares approved 750,000 — — Unissued shares eliminated from plan (13,346 ) — — Options granted (275,250 ) 275,250 5.07 RSUs granted (460,209 ) — — Options and stock appreciation rights cancelled 54,914 (54,914 ) 25.50 RSUs cancelled 29,211 — — BALANCE AT DECEMBER 31, 2016 602,825 505,872 $ 13.94 Options granted (20,000 ) 20,000 7.18 RSUs granted (454,783 ) — — Options and stock appreciation rights cancelled 100,150 (100,150 ) 23.92 RSUs cancelled 105,790 — — Balance at DECEMBER 31, 2017 333,982 425,722 $ 11.28 The total intrinsic value of options and SARs exercised during the years ended December 31, 2017 and 2016 was approximately $0 and $0 , respectively, as no options or SARs were exercised during this time. 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, 2017 and 2016 : Number of Shares Nonvested and Outstanding Weighted-Average Grant Date Fair-Value BALANCE AT DECEMBER 31, 2015 64,714 $ 14.45 RSUs granted 307,770 5.21 RSUs vested and released (23,993 ) 14.31 RSUs cancelled (17,328 ) 17.06 BALANCE AT DECEMBER 31, 2016 331,163 $ 5.74 RSUs granted 454,783 4.88 RSUs vested and released (136,928 ) 6.22 RSUs cancelled (93,112 ) 5.31 BALANCE AT DECEMBER 31, 2017 555,906 $ 4.99 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, 2017 and 2016 was approximately $685,400 and $118,000 , 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, 2017 , the number of RSUs and RSAs outstanding was 555,906 , with a total intrinsic value of $3.1 million . The intrinsic value of the outstanding RSUs and RSAs is calculated based on the market value of the Company's closing stock price of $5.54 as of December 29, 2017 , the last market trading day of 2017. |
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, 2017 : Exercise Price Range Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price per Share Aggregate Intrinsic Value $4.51 20,000 8.38 $ 4.51 $ 20,600 5.22 182,000 8.74 5.22 58,240 5.45 - 9.10 31,500 8.81 7.01 675 9.11 73,000 7.45 9.11 — 9.15 - 23.70 81,590 6.03 21.29 — $24.20 - $32.50 37,632 4.77 30.24 — Outstanding 425,722 7.64 $ 11.28 $ 79,515 Vested and expected to vest 418,607 7.64 $ 11.35 $ 77,790 Exercisable 345,103 7.43 $ 12.41 $ 57,168 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 granted during the years ended December 31, 2017 and 2016 was $3.09 and $2.55 , respectively, and was determined using the following weighted average assumptions: Year ended December 31, 2017 2016 Expected dividend yield —% —% Risk-free interest rate 1.7% 1.2% Expected volatility 55.9% 58.1% Expected term (in years) 3.75 5.12 |
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, 2017 (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 January 2017 143,283 $ 721 $ 132 $ 589 December 2017 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following table summarizes stock-based compensation expense for the years ended December 31, 2017 and 2016 and its allocation within the consolidated statements of operations (in thousands): Year ended 31 December, 2017 2016 Cost of revenues $ 158 $ 48 Product development 475 173 Sales and marketing (20 ) 57 General and administrative 844 468 Total stock based compensation expense related to stock options and share awards 1,457 746 Tax benefit — — Stock-based compensation expense related to stock options and share awards, net of tax $ 1,457 $ 746 |
Significant Customers (Tables)
Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Revenues attributable to sales to major customers | For the years ended December 31, 2017 and 2016 , the percentage of the Company’s revenues attributable to sales made to this customer was as follows: Year ended December 31, 2017 2016 Avnet 28.0% 28.7% |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 are as follows (in thousands): Amount Balance as of December 31, 2015 $ 1,183 Amortization (230 ) Balance as of December 31, 2016 953 Amortization (228 ) Balance as of December 31, 2017 725 |
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, 2017 (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 $ (414 ) $ 386 3.13 Customer relationships 500 (258 ) 242 3.13 Trade names 200 (103 ) 97 3.13 Total $ 1,500 $ (775 ) $ 725 3.13 |
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, 2017 and 2016 (in thousands): Year ended December 31, 2017 2016 Cost of revenues $ 121 $ 123 Operating expenses 107 107 Total $ 228 $ 230 |
Goodwill Disclosure [Text Block] | The following table presents the estimated future amortization of finite-lived intangible assets as of December 31, 2017 (in thousands): Estimated Future Amortization 2018 229 2019 229 2020 229 2021 38 Total $ 725 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2017 , future minimum lease payments under all operating leases were as follows (in thousands): 2018 $ 950 2019 483 2020 $ 16 2021 $ 12 Total payments $ 1,461 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The provision for (benefit from) income taxes attributable to continuing operations is based upon loss from operations before provision for income taxes as follows (in thousands): Year ended December 31, 2017 2016 Domestic $ (5,106 ) $ (4,632 ) Foreign 455 711 $ (4,651 ) $ (3,921 ) |
Schedule of Components of Income Tax Expense (Benefit) | The provision for (benefit from) income taxes consists of the following (in thousands): Year ended December 31, 2017 2016 Federal: Current $ (82 ) $ — Deferred — — Total federal benefit (82 ) — State: Current 1 18 Deferred — — Total state provision 1 18 Foreign: Current 53 164 Deferred — — Total foreign provision 53 164 Total income tax expense (benefit) $ (28 ) $ 182 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for (benefit from) 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, 2017 2016 U.S. Federal tax benefit at statutory rate $ (1,629 ) $ (1,372 ) State tax benefit, net of federal benefit (187 ) (171 ) U.S.-Foreign rate differential (113 ) (96 ) Change in valuation allowance (33,001 ) 939 Rate differential impact - Tax Cuts and Jobs Act 34,679 — Research and development credits 281 233 Permanent items 30 657 Others (88 ) (8 ) Total income tax expense (benefit) $ (28 ) $ 182 |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred income tax asset are as follows (in thousands): Year ended December 31, 2017 2016 Deferred tax assets: Net operating loss carry forwards $ 62,635 $ 100,378 Tax credit carry forwards 17,078 19,248 Fixed and intangible assets 266 597 Capitalized research and development costs 70 58 Stock based compensation and other reserves and allowances 2,131 3,445 Gross deferred income tax assets 82,180 123,726 Valuation allowance (82,180 ) (123,726 ) Net deferred income tax assets $ — $ — |
Summary of Income Tax Contingencies | The following is a rollforward of the Company's unrecognized tax benefits related to uncertain tax positions for the years ended December 31, 2017 and 2016 (in thousands): Year ended December 31, 2017 2016 Balance as of the beginning of the year $ 9,216 $ 9,066 Tax positions related to current year: Additions 165 152 Reductions (9 ) (14 ) Tax positions related to prior years: Additions 26 80 Reductions (6 ) (4 ) Settlements — — Lapses in statute of limitations (48 ) (64 ) Balance as of the end of the year $ 9,344 $ 9,216 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table sets forth a summary of restructuring activities related to the Company's 2016 restructuring program in 2017 (in thousands): December 31, 2016 Costs Incurred Cash Payments December 31, 2017 Termination benefits $ 273 $ — $ (88 ) $ 185 The following table sets forth a summary of restructuring activities related to the Company's 2016 restructuring program in 2016 (in thousands): December 31, 2015 Costs Incurred Cash Payments December 31, 2016 Termination benefits $ — $ 286 $ (13 ) $ 273 |
Valuation and Qualifying acco40
Valuation and Qualifying accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017: Allowance for Doubtful Accounts $ 36 $ (6 ) $ — $ 30 Allowance for Customer Returns and Sales Credits $ 528 $ 2,845 $ (3,121 ) $ 252 Year Ended December 31, 2016: Allowance for Doubtful Accounts $ 31 $ 5 $ — $ 36 Allowance for Customer Returns and Sales Credits $ 490 $ 3,713 $ (3,675 ) $ 528 |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenue information by geography | Summary revenue information by geography for the years ended December 31, 2017 and 2016 is as follows (in thousands): Year ended December 31, 2017 2016 Americas United States $ 12,395 $ 10,309 Other Americas 921 1,093 Total Americas 13,316 11,402 EMEA Germany 8,034 8,749 Other EMEA 2,731 5,366 Total EMEA 10,765 14,115 APJ China 2,443 2,209 Other APJ 5,143 4,659 Total APJ 7,586 6,868 Total $ 31,667 $ 32,385 |
Selected Quarterly Financial 42
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | The following tables set forth certain consolidated statements of operations data for each of the quarters in 2017 and 2016 . 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 2017 September 2017 June March December 2016 September 2016 June March Consolidated Statement of Operations Data: Revenues $ 8,030 $ 7,817 $ 8,021 $ 7,799 $ 7,498 $ 8,179 $ 8,061 $ 8,647 Cost of revenues 3,858 3,337 3,495 3,326 3,375 3,707 3,415 3,805 Gross profit 4,172 4,480 4,526 4,473 4,123 4,472 4,646 4,842 Operating expenses: Product development 2,551 2,280 2,255 2,227 2,119 1,963 1,985 2,193 Sales and marketing 1,368 1,239 1,463 1,462 1,638 1,570 1,679 1,302 General and administrative 1,450 1,656 1,929 1,924 1,782 2,087 2,197 2,011 Restructuring charges — — — — 286 — — — Total operating expenses 5,369 5,175 5,647 5,613 5,825 5,620 5,861 5,506 Loss from operations (1,197 ) (695 ) (1,121 ) (1,140 ) (1,702 ) (1,148 ) (1,215 ) (664 ) Interest and other income (expense), net (58 ) (155 ) (220 ) (65 ) 567 (57 ) 503 (205 ) Loss before provision for income taxes (1,255 ) (850 ) (1,341 ) (1,205 ) (1,135 ) (1,205 ) (712 ) (869 ) Income tax expense (benefit) (53 ) 2 29 (6 ) 102 23 51 6 Net loss $ (1,202 ) $ (852 ) $ (1,370 ) $ (1,199 ) $ (1,237 ) $ (1,228 ) $ (763 ) $ (875 ) Basic and diluted net loss per share $ (0.27 ) $ (0.19 ) $ (0.31 ) $ (0.27 ) $ (0.28 ) $ (0.28 ) $ (0.17 ) $ (0.20 ) Shares used in net loss per share calculation: Basic 4,520 4,460 4,445 4,434 4,432 4,431 4,420 4,417 Diluted 4,520 4,460 4,445 4,434 4,432 4,431 4,420 4,417 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2017customercountry | Dec. 31, 2016customer | |
Number of countries in which Company maintains offices (in country) | country | 6 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Number of Customers | customer | 1 | 1 |
Avnet | ||
Percentage of accounts receivable | 0.00% | 26.90% |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Avnet | ||
Percentage of accounts receivable | 0.00% | 26.90% |
Avnet | ||
Percentage of net revenue | 28.00% | 28.70% |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Revenue | $ 8,030,000 | $ 7,817,000 | $ 8,021,000 | $ 7,799,000 | $ 7,498,000 | $ 8,179,000 | $ 8,061,000 | $ 8,647,000 | $ 31,667,000 | [1] | $ 32,385,000 | [1] | ||
Net loss | (1,202,000) | (852,000) | (1,370,000) | (1,199,000) | (1,237,000) | (1,228,000) | (763,000) | (875,000) | $ (4,623,000) | $ (4,103,000) | ||||
Basic and diluted net loss per share | $ (1.04) | $ (0.93) | ||||||||||||
Accounts receivable, net | [2] | (2,721,000) | (3,015,000) | $ (2,721,000) | $ (3,015,000) | |||||||||
Deferred cost of goods sold | 1,767,000 | 1,104,000 | 1,767,000 | 1,104,000 | ||||||||||
Accrued liabilities | 1,878,000 | 2,174,000 | 1,878,000 | 2,174,000 | ||||||||||
Deferred revenues | (4,805,000) | (3,671,000) | (4,805,000) | (3,671,000) | ||||||||||
Stockholders' equity | 21,887,000 | 24,678,000 | 21,887,000 | 24,678,000 | $ 28,921,000 | |||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | |||||||||||||
Cost of Revenue | (3,858,000) | $ (3,337,000) | $ (3,495,000) | $ (3,326,000) | (3,375,000) | $ (3,707,000) | $ (3,415,000) | $ (3,805,000) | (14,016,000) | [3] | (14,302,000) | [3] | ||
Additional Paid-in Capital | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Stockholders' equity | 359,339,000 | 358,123,000 | 359,339,000 | 358,123,000 | 356,746,000 | |||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (675,000) | |||||||||||||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | Additional Paid-in Capital | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 675,000 | $ 675,000 | ||||||||||||
Accounting Standards Update 2014-09 | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Revenue | 274,000 | |||||||||||||
Accounts receivable, net | 400,000 | 400,000 | ||||||||||||
Deferred revenues | 3,000,000 | 3,000,000 | ||||||||||||
Cost of Revenue | 728,000 | |||||||||||||
Pro Forma [Member] | Accounting Standards Update 2014-09 | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Revenue | [1] | 31,941,000 | ||||||||||||
Net loss | $ (4,419,000) | |||||||||||||
Basic and diluted net loss per share | $ (0.99) | |||||||||||||
Accounts receivable, net | [2] | (2,326,000) | $ (2,326,000) | |||||||||||
Deferred cost of goods sold | 1,039,000 | 1,039,000 | ||||||||||||
Deferred revenues | (1,842,000) | (1,842,000) | ||||||||||||
Stockholders' equity | 23,727,000 | 23,727,000 | ||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Revenue | [1] | 274,000 | ||||||||||||
Net loss | $ 204,000 | |||||||||||||
Basic and diluted net loss per share | $ 0.05 | |||||||||||||
Accounts receivable, net | [2] | 395,000 | $ 395,000 | |||||||||||
Deferred cost of goods sold | (728,000) | (728,000) | ||||||||||||
Deferred revenues | 2,963,000 | 2,963,000 | ||||||||||||
Stockholders' equity | $ 1,840,000 | $ 1,840,000 | ||||||||||||
[1] | Includes related party amounts of $0 and $1,313 in 2017 and 2016, respectively. See Note 13 for additional information on related party transactions. | |||||||||||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjcwMjE5NjdjZTI5OTQyODBiNmZlMDMwMWNlNDY3OWQzfFRleHRTZWxlY3Rpb246RkQ1QUNDNTgxNjI0OUE2MzI5RjZERDk4NDlDMEUyNUYM} | |||||||||||||
[3] | See Note 7 for summary of amounts included representing stock-based compensation expense. |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 148 | $ 148 |
Inventory, Finished Goods, Net of Reserves | 3,103 | 2,422 |
Inventory, Net | $ 3,251 | $ 2,570 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payroll and related costs | $ 1,088 | $ 1,299 |
Warranty reserve | 142 | 118 |
Restructuring charges | 185 | 273 |
Other accrued liabilities | 463 | 484 |
Accrued Liabilities, Current | $ 1,878 | $ 2,174 |
Summary of Significant Accoun48
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||||||||||
Net loss | $ (1,202) | $ (852) | $ (1,370) | $ (1,199) | $ (1,237) | $ (1,228) | $ (763) | $ (875) | $ (4,623) | $ (4,103) |
Weighted Average Number of Shares Outstanding, Basic | 4,520,000 | 4,460,000 | 4,445,000 | 4,434,000 | 4,432,000 | 4,431,000 | 4,420,000 | 4,417,000 | 4,465,000 | 4,425,000 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | |||||||||
Weighted Average Number of Shares Outstanding, Diluted | 4,520,000 | 4,460,000 | 4,445,000 | 4,434,000 | 4,432,000 | 4,431,000 | 4,420,000 | 4,417,000 | 4,465,000 | 4,425,000 |
Basic and diluted net loss per share | $ (1.04) | $ (0.93) | ||||||||
Stock Awards Excluded from Computation of Earnings Per Share Amount | 981,628 | 837,035 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair value of asset measured on a recurring basis | |||
Fixed income available-for-sale securities | $ 11,967 | $ 11,983 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair value of asset measured on a recurring basis | |||
Money market funds | [1] | 4,515 | 4,513 |
Fixed income available-for-sale securities | [2] | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 4,515 | 4,513 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value of asset measured on a recurring basis | |||
Money market funds | [1] | 0 | 0 |
Fixed income available-for-sale securities | [2] | 13,217 | 13,233 |
Assets, Fair Value Disclosure, Recurring | 13,217 | 13,233 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair value of asset measured on a recurring basis | |||
Money market funds | [1] | 0 | 0 |
Fixed income available-for-sale securities | [2] | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair value of asset measured on a recurring basis | |||
Money market funds | [1] | 4,515 | 4,513 |
Fixed income available-for-sale securities | [2] | 13,217 | 13,233 |
Assets, Fair Value Disclosure, Recurring | $ 17,732 | $ 17,746 | |
[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, 2017 | Dec. 31, 2016 |
Fair value of short term investment unrealized holdings and gains | ||
Amortized Cost | $ 11,970 | $ 11,984 |
Aggregate fair value | 11,967 | 11,983 |
Unrealized Holdings gains | 0 | 0 |
Unrealized Holdings Losses | $ 3 | $ 1 |
Financial Instruments (Details
Financial Instruments (Details Textual) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments (Textual) [Abstract] | |
Short-term investments contractual maturity period maximum | 6 months |
Average short-term investments maturity period | 3 months |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Computer and other equipment | $ 3,559 | $ 3,370 |
Software | 3,137 | 3,130 |
Furniture and fixtures | 117 | 110 |
Leasehold improvements | 200 | 194 |
Property, Plant and Equipment, Gross | 7,013 | 6,804 |
Less: Accumulated depreciation and amortization | (6,555) | (6,359) |
Property and equipment, net | $ 458 | $ 445 |
Property and Equipment Useful L
Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 15, 2014 | |
Business Acquisition [Line Items] | ||||||
Business Combination, Contingent Consideration, Average Closing Stock Price | 6 days | |||||
Assets acquired and liabilities assumed | ||||||
Decrease in contingent consideration | $ 318,000 | $ 577,000 | $ 0 | $ 318,000 | ||
Developed Technology Rights [Member] | ||||||
Assets acquired and liabilities assumed | ||||||
Identifiable intangible assets | $ 800,000 | |||||
Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite lived intangible asset, useful life range, Low value | 6 years 6 months | |||||
Fair value inputs, discount range, low end of range | 21.00% | |||||
Fair value inputs, discount range, high end of range | 22.00% | |||||
Assets acquired and liabilities assumed | ||||||
Identifiable intangible assets | $ 500,000 | |||||
Trade Names [Member] | ||||||
Assets acquired and liabilities assumed | ||||||
Identifiable intangible assets | 200,000 | |||||
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. | |||||
Business Combination, Contingent Consideration, Liability | $ 318,000 | $ 925,000 | $ 0 | |||
Assets acquired and liabilities assumed | ||||||
Cash and cash equivalents | $ 630,000 | |||||
Accounts receivable | 107,000 | |||||
Inventory | 31,000 | |||||
Other current assets | 259,000 | |||||
Property and equipment | 23,000 | |||||
Identifiable intangible assets | 1,500,000 | |||||
Goodwill | 1,257,000 | |||||
Accounts payable | (352,000) | |||||
Accrued liabilities | (255,000) | |||||
Total assets acquired and liabilities assumed, net | $ 3,200,000 |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning of period | $ 24,424 | |
End of period | 21,633 | $ 24,424 |
AOCI Attributable to Parent [Member] | ||
Beginning of period | (2,437) | (1,594) |
Change during the year | 616 | (843) |
End of period | (1,821) | (2,437) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Beginning of period | (2) | (12) |
Change during the year | (1) | 10 |
End of period | (3) | (2) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Beginning of period | (2,435) | (1,582) |
Change during the year | 617 | (853) |
End of period | $ (1,818) | $ (2,435) |
Stockholders' Equity and Empl56
Stockholders' Equity and Employee Stock Option Plans (Details Textual) | Apr. 22, 2016right$ / sharesshares | Dec. 07, 2015 | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares | Oct. 31, 2016shares | Dec. 31, 2015shares | Apr. 01, 2013shares | Mar. 31, 2013shares |
Class of Stock [Line Items] | ||||||||
Class Of Warrant Or Right, Exclusion Of Beneficial Owners, Beneficial Ownership Percentage | 4.99% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | |||||||
Number of shares outstanding | 425,722 | 505,872 | 285,536 | 550,540 | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,090,540 | 2,097,283 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 333,982 | 602,825 | 517,505 | 1,546,743 | ||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 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 | 4,520,376 | 4,431,736 | ||||||
Common Stock, Dividend, Rights Issued | right | 1 | |||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.0010 | |||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Reverse stock split ratio | 0.1 | |||||||
2016 Equity Incentive Plan [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares outstanding | 892,629 | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,100,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 187,982 | |||||||
1997 Stock Plan [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Award vesting period (in years) | 4 years | |||||||
2016 Inducement Equity Incentive Plan [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 235,000 | |||||||
Number of shares outstanding | 89,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 146,000 | |||||||
Granted After March 31, 2013 [Member] | 2016 Equity Incentive Plan [Member] | Stock Options [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Award expiration term (in years) | 10 years | |||||||
Granted From May 6, 2003 To March 31, 2013 [Member] | 1997 Stock Plan [Member] | Stock Options [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Award expiration term (in years) | 5 years | |||||||
Minimum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Award vesting period (in years) | 2 years | |||||||
Maximum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Award vesting period (in years) | 3 years |
Stockholders' Equity and Empl57
Stockholders' Equity and Employee Stock Option Plans Stock Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||
Number of Shares Available for Grant, Opening Balance | 602,825 | 517,505 |
Options and SARS, Outstanding, Number, opening balance | 505,872 | 285,536 |
Options and SARS, Outstanding opening balance, Weighted Average Exercise Price, | $ 13.94 | $ 24.72 |
Number Of Shares Available For Grant, Options ans SARS Granted | (20,000) | (275,250) |
Options and SARS, Grants in Period | 20,000 | 275,250 |
Options and SARS, Grants in Period, Weighted Average Exercise Price | $ 7.18 | $ 5.07 |
Number of shares available for grant, RSU granted | (454,783) | (460,209) |
Number Of Shares Available For Grant, Options and SARS Canceled | 100,150 | 54,914 |
Options and SARS, Forfeitures in Period | (100,150) | (54,914) |
Options and SARS, Forfeitures in Period, Weighted Average Exercise Price | $ 23.92 | $ 25.50 |
Number of shares available for grant, RSU canceled | 105,790 | 29,211 |
New plan shares approved, Shares | 750,000 | |
Unissued shares eliminated from plan, Shares | (13,346) | |
Number of Shares Available for Grant, Ending Balance | 333,982 | 602,825 |
Options and SARS, Outstanding, Number, Closing balance | 425,722 | 505,872 |
Options and SARS, Outstanding ending balance, Weighted Average Exercise Price | $ 11.28 | $ 13.94 |
Stockholders' Equity and Employee Stock Option Plans (Textual) [Abstract] | ||
Options, Exercises in Period, Total Intrinsic Value | $ 0 | $ 0 |
Stockholders' Equity and Empl58
Stockholders' Equity and Employee Stock Option Plans 1997 Stock Plan (Details) - shares | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 01, 2013 | Mar. 31, 2013 | |
Equity [Abstract] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,090,540 | 2,097,283 | |||
Options and SARS, Outstanding, Number | 425,722 | 505,872 | 285,536 | 550,540 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional Shares Authorized in 2013 Amendment | 540,000 | ||||
New plan shares approved, Shares | 750,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 333,982 | 602,825 | 517,505 | 1,546,743 | |
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 4 years | ||||
2016 Equity Incentive Plan [Member] | |||||
Equity [Abstract] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,100,000 | ||||
Options and SARS, Outstanding, Number | 892,629 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 187,982 | ||||
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] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase price as a percent of fair market value | 100.00% | ||||
Award vesting period (in years) | 4 years | ||||
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 |
Stockholders' Equity and Empl59
Stockholders' Equity and Employee Stock Option Plans RSU and RSA Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||
RSU/ RSA Nonvested and outstanding opening balance, Number | 331,163 | 64,714 |
RSU/ RSA Nonvested and Outstanding Opening balance, Weighted Average Grant Date Fair Value | $ 5.74 | $ 14.45 |
RSU/ RSA, Grants in Period | 454,783 | 307,770 |
RSU/RSA, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.88 | $ 5.21 |
RSU/RSA Vested in Period | (136,928) | (23,993) |
RSU/ RSA Vested in Period, Weighted Average Grant Date Fair Value | $ 6.22 | $ 14.31 |
RSU/ RSA Forfeited in Period | (93,112) | (17,328) |
RSU/RSA, Forfeitures, Weighted Average Grant Date Fair Value | $ 5.31 | $ 17.06 |
RSU/ RSA Nonvested and outstanding ending balance, Number | 555,906 | 331,163 |
RSU/ RSA Nonvested and Outstanding Closing balance, Weighted Average Grant Date Fair Value | $ 4.99 | $ 5.74 |
Total fair value of RSUs vested and released | $ 685 | $ 118,000 |
RSU, Vested and Expected to Vest, Outstanding, Number | 555,906 | |
RSU, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 3,100 | |
Share Price | $ 5.54 |
Stockholders' Equity and Empl60
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2013 | |
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 7 months 21 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 80 | |||
Options and SARS, Outstanding, Weighted Average Exercise Price | $ 11.28 | $ 13.94 | $ 24.72 | |
Options and SARS, Outstanding, Number | 425,722 | 505,872 | 285,536 | 550,540 |
Options, Vested and Expected to Vest, Outstanding, Number | 418,607 | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 7 years 7 months 21 days | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 11.35 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 78 | |||
Options, Exercisable, Number | 345,103 | |||
Options, Exercisable, Weighted Average Remaining Contractual Term | 7 years 5 months 5 days | |||
Options, Exercisable, Weighted Average Exercise Price | $ 12.41 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 57 | |||
$ 4.51 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price Range, Lower Range Limit | $ 4.51 | |||
Exercise Price Range, Number of Outstanding Options and SARS | 20,000 | |||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 8 years 4 months 17 days | |||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 4.51 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 21 | |||
5.22 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price Range, Lower Range Limit | $ 5.22 | |||
Exercise Price Range, Number of Outstanding Options and SARS | 182,000 | |||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 8 years 8 months 27 days | |||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 5.22 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 58 | |||
5.45 - 9.10 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price Range, Lower Range Limit | $ 5.45 | |||
Exercise Price Range, Upper Range Limit | $ 9.10 | |||
Exercise Price Range, Number of Outstanding Options and SARS | 31,500 | |||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 8 years 9 months 22 days | |||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 7.01 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 1 | |||
9.11 | ||||
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, Number of Outstanding Options and SARS | 73,000 | |||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 7 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 | |||
9.15 - 23.70 | ||||
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 | $ 23.70 | |||
Exercise Price Range, Number of Outstanding Options and SARS | 81,590 | |||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 6 years 11 days | |||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 21.29 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | |||
$24.20 - $32.50 | ||||
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 | $ 32.5 | |||
Exercise Price Range, Number of Outstanding Options and SARS | 37,632 | |||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 4 years 9 months 7 days | |||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 30.24 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
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% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.70% | 1.20% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 55.90% | 58.10% |
Fair Value Assumptions, Expected Term | 3 years 9 months | 5 years 1 month 13 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.09 | $ 2.55 |
Contractual term of options awarded | 10 years |
Stock-based Compensation - Equi
Stock-based Compensation - Equity Compensation expense for RSUs and RSAs with Financial or other Performance based vesting requirments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 143,283 | |
June 2014 Grant Date [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 143,283 | |
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | $ 132 | |
Fair Value of Performance Awards on Grant Date | 721 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 589 | |
Latest Date that Performance condition could be met | December 2,017 | |
Scenario, Forecast [Member] | ||
Awards expected to expire | 114,379 |
Stock-based Compensation - Expe
Stock-based Compensation - Expense Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 1,600 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 10 months 19 days | |
Allocated Share-based Compensation Expense, Net of Tax | $ 1,457 | $ 746 |
Cost of Sales [Member] | ||
Allocated Share-based Compensation Expense | 158 | 48 |
Product Development [Member] | ||
Allocated Share-based Compensation Expense | 475 | 173 |
Selling and Marketing Expense [Member] | ||
Allocated Share-based Compensation Expense | (20) | 57 |
General and Administrative Expense [Member] | ||
Allocated Share-based Compensation Expense | 844 | 468 |
Total Share based compensation costs prior to tax benefit [Member] | ||
Allocated Share-based Compensation Expense | 1,457 | 746 |
Tax benefit [Member] | ||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 0 | $ 0 |
Significant Customers (Details)
Significant Customers (Details) - customer | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues attributable to sales [Line Items] | ||
Number of Customers | 1 | 1 |
Avnet | ||
Revenues attributable to sales [Line Items] | ||
Total | 28.00% | 28.70% |
Cancellation notice period | 90 days |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | $ (228) | $ (230) | ||
Gross Carrying Value | 1,500 | |||
Accumulated Amortization | (775) | |||
Total finite-lived intangible assets, net | $ 725 | 953 | $ 1,183 | |
Weighted-Average Remaining Useful Life (in years) | 3 years 1 month 17 days | |||
Amortization of Intangible Assets | $ 121 | 123 | ||
Amortization of intangible assets included in operating expenses | 107 | 107 | ||
Amortization of Intangible Assets | (228) | $ (230) | ||
Developed Technology Rights [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Identifiable intangible assets | $ 800 | |||
Gross Carrying Value | 800 | |||
Accumulated Amortization | (414) | |||
Total finite-lived intangible assets, net | $ 386 | |||
Weighted-Average Remaining Useful Life (in years) | 3 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 | (258) | |||
Total finite-lived intangible assets, net | $ 242 | |||
Weighted-Average Remaining Useful Life (in years) | 3 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 | (103) | |||
Total finite-lived intangible assets, net | $ 97 | |||
Weighted-Average Remaining Useful Life (in years) | 3 years 1 month 17 days |
Intangible Assets - Finite-Live
Intangible Assets - Finite-Lived Amortization Expense by Fiscal Year (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,018 | $ 229 | ||
2,019 | 229 | ||
2,021 | 229 | ||
2,022 | 38 | ||
Total finite-lived intangible assets, net | $ 725 | $ 953 | $ 1,183 |
Commitments and Contingencies F
Commitments and Contingencies Future minimum lease payments for Operating Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Future Minimum Payments for Operating Leases | ||
2,018 | $ 950,000 | |
2,019 | 483,000 | |
2,020 | 16,000 | |
2,021 | 12,000 | |
Total payments | 1,461,000 | |
Rent expense | 964,000 | $ 994,000 |
Deferred Rent Credit | 135,000 | 193,000 |
Deferred Rent Credit, Current | $ 72,000 | $ 59,000 |
Commitments and Contingencies R
Commitments and Contingencies Royalties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Royalty Expense | $ 260 | $ 264 |
Commitments and Contingencies L
Commitments and Contingencies Line of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Line of Credit Maintained | $ 1,000 | |
Restricted investments | $ 1,250 | $ 1,250 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||||||||
Rate differential impact - Tax Cuts and Jobs Act | $ 34,679 | $ 0 | ||||||||
Loss from Continuing Operations before Income Taxes, Domestic | (5,106) | (4,632) | ||||||||
Income (loss) from Continuing Operations before Income Taxes, Foreign | 455 | 711 | ||||||||
Loss from operations before provision for income taxes | $ (1,255) | $ (850) | $ (1,341) | $ (1,205) | $ (1,135) | $ (1,205) | $ (712) | $ (869) | $ (4,651) | $ (3,921) |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal: | ||||||||||
Current | $ (82) | $ 0 | ||||||||
Deferred | 0 | 0 | ||||||||
Total federal provision | (82) | 0 | ||||||||
State: | ||||||||||
Current | 1 | 18 | ||||||||
Deferred | 0 | 0 | ||||||||
Total state provision | 1 | 18 | ||||||||
Foreign: | ||||||||||
Current | 53 | 164 | ||||||||
Deferred | 0 | 0 | ||||||||
Total foreign provision | 53 | 164 | ||||||||
Total income tax expense | $ (53) | $ 2 | $ 29 | $ (6) | $ 102 | $ 23 | $ 51 | $ 6 | $ (28) | $ 182 |
Income Taxes Effective Rate Rec
Income Taxes Effective Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||||||||
U.S. Federal tax benefit at statutory rate | $ (1,629) | $ (1,372) | ||||||||
State tax benefit, net of federal benefit | (187) | (171) | ||||||||
U.S.-Foreign rate differential | (113) | (96) | ||||||||
Change in valuation allowance | (33,001) | 939 | ||||||||
Rate differential impact - Tax Cuts and Jobs Act | 34,679 | 0 | ||||||||
Research and development credits | 281 | 233 | ||||||||
Permanent items | 30 | 657 | ||||||||
Others | (88) | (8) | ||||||||
Total income tax expense | $ (53) | $ 2 | $ 29 | $ (6) | $ 102 | $ 23 | $ 51 | $ 6 | $ (28) | $ 182 |
Income Taxes Components of defe
Income Taxes Components of deferred tax asset/ liability (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 62,635 | $ 100,378 |
Tax credit carry forwards | 17,078 | 19,248 |
Fixed and intangible assets | 266 | 597 |
Capitalized research and development costs | 70 | 58 |
Stock based compensation and other reserves and allowances | 2,131 | 3,445 |
Gross deferred income tax assets | 82,180 | 123,726 |
Valuation allowance | (82,180) | (123,726) |
Net deferred income tax assets | $ 0 | $ 0 |
Percentage of deferred tax assets on which valuation allowance is created | 100.00% |
Income Taxes Components of De74
Income Taxes Components of Deferred Tax asset/ liability (Textual) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
State and Local Jurisdiction [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Operating Loss Carryforwards | $ 107.3 |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Tax Credit Carryforward, Amount | 16.5 |
Domestic Tax Authority [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Operating Loss Carryforwards | $ 261.2 |
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2037 |
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Tax Credit Carryforward, Amount | $ 11.4 |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2037 |
Income Taxes Company's uncertai
Income Taxes Company's uncertain tax positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Balance as of the beginning of the year | $ 9,216 | $ 9,066 |
Tax positions related to current year: | ||
Additions | 165 | 152 |
Reductions | (9) | (14) |
Tax positions related to prior years: | ||
Additions | 26 | 80 |
Reductions | (6) | (4) |
Settlements | 0 | 0 |
Lapses in statute of limitations | (48) | (64) |
Balance as of the end of the year | 9,344 | 9,216 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 332 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 56 | |
Unrecognized tax benfits, reduction in accrued interest and penalties | $ 6 | $ 12 |
Warranty Reserves (Details)
Warranty Reserves (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Warranty Reserves [Abstract] | ||
Standard Product Warranty Accrual | $ 350,000 | $ 245,000 |
Standard Product Warranty Accrual, Current | 142,000 | 118,000 |
Standard Product Warranty Accrual, Noncurrent | $ 208,000 | $ 127,000 |
Related Parties (Details Textua
Related Parties (Details Textual) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2000USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | |
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 | $ | $ 0 | $ 1,313 |
Restructuring Restructuring Pla
Restructuring Restructuring Plan (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)employee | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 0 | $ 286 | $ 0 | $ 0 | $ 0 | $ 0 | $ 286 | |
Restructuring Reserve, Current | 185 | 273 | $ 185 | 273 | |||||||
2016 Restructuring Plan [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Number of Positions Eliminated (in employee) | employee | 7 | ||||||||||
Restructuring Reserve | 273 | 273 | $ 0 | ||||||||
Restructuring charges | $ 0 | 300 | |||||||||
Payments for Restructuring | (88) | (13) | |||||||||
Restructuring Reserve, Current | $ 185 | $ 273 | $ 185 | $ 273 |
Restructuring Restructuring P79
Restructuring Restructuring Plan (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)employee | Dec. 31, 2016USD ($) | |
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 0 | $ 286 | $ 0 | $ 0 | $ 0 | $ 0 | $ 286 |
2016 Restructuring Plan [Member] | ||||||||||
Number of Positions Eliminated (in employee) | employee | 7 | |||||||||
Restructuring charges | $ 0 | $ 300 |
Valuation and Qualifying acco80
Valuation and Qualifying accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts [Member] | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation Allowances and Reserves, Opening Balance | $ 36 | $ 31 |
Valuation Allowances and Reserves, Additions for Charges to Cost and Expense | (6) | 5 |
Valuation Allowances and Reserves, Additions for Adjustments | 0 | 0 |
Valuation Allowances and Reserves, Closing Balance | 30 | 36 |
Allowance for Sales Returns [Member] | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation Allowances and Reserves, Opening Balance | 528 | 490 |
Valuation Allowances and Reserves, Additions for Charges to Cost and Expense | 2,845 | 3,713 |
Valuation Allowances and Reserves, Additions for Adjustments | (3,121) | (3,675) |
Valuation Allowances and Reserves, Closing Balance | $ 252 | $ 528 |
Segment Disclosure (Details Tex
Segment Disclosure (Details Textual) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)geographic_area | Dec. 31, 2016USD ($) | |
Segment Reporting [Abstract] | ||
Number of geographic areas | geographic_area | 3 | |
Long-lived assets US | $ | $ 2.1 | $ 2.2 |
Segment Disclosure (Details 1)
Segment Disclosure (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Revenue Information by Geography [Abstract] | ||||||||||||
Revenue | $ 8,030 | $ 7,817 | $ 8,021 | $ 7,799 | $ 7,498 | $ 8,179 | $ 8,061 | $ 8,647 | $ 31,667 | [1] | $ 32,385 | [1] |
United States [Member] | ||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||
Revenue | 12,395 | 10,309 | ||||||||||
Other Americas [Member] | ||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||
Revenue | 921 | 1,093 | ||||||||||
Total Americas [Member] | ||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||
Revenue | 13,316 | 11,402 | ||||||||||
Germany [Member] | ||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||
Revenue | 8,034 | 8,749 | ||||||||||
Other EMEA [Member] | ||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||
Revenue | 2,731 | 5,366 | ||||||||||
Total EMEA [Member] | ||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||
Revenue | 10,765 | 14,115 | ||||||||||
China [Member] | ||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||
Revenue | 2,443 | 2,209 | ||||||||||
Other APJ [Member] | ||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||
Revenue | 5,143 | 4,659 | ||||||||||
Total APJ [Member] | ||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||
Revenue | $ 7,586 | $ 6,868 | ||||||||||
[1] | Includes related party amounts of $0 and $1,313 in 2017 and 2016, respectively. See Note 13 for additional information on related party transactions. |
Joint Venture (Details)
Joint Venture (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Less Than Wholly Owned Subsidiary [Abstract] | ||
Ownership interest in the joint venture | 51.00% | |
Net loss attributable to noncontrolling interest | $ 0 | $ 0 |
Registered capital of the Joint venture | $ 4,000 |
Selected Quarterly Financial 84
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Revenue | $ 8,030 | $ 7,817 | $ 8,021 | $ 7,799 | $ 7,498 | $ 8,179 | $ 8,061 | $ 8,647 | $ 31,667 | [1] | $ 32,385 | [1] |
Cost of Revenue | 3,858 | 3,337 | 3,495 | 3,326 | 3,375 | 3,707 | 3,415 | 3,805 | 14,016 | [2] | 14,302 | [2] |
Gross profit | 4,172 | 4,480 | 4,526 | 4,473 | 4,123 | 4,472 | 4,646 | 4,842 | 17,651 | 18,083 | ||
Product development | 2,551 | 2,280 | 2,255 | 2,227 | 2,119 | 1,963 | 1,985 | 2,193 | 9,313 | [2] | 8,260 | [2] |
Sales and marketing | 1,368 | 1,239 | 1,463 | 1,462 | 1,638 | 1,570 | 1,679 | 1,302 | 5,532 | [2] | 6,189 | [2] |
General and administrative | 1,450 | 1,656 | 1,929 | 1,924 | 1,782 | 2,087 | 2,197 | 2,011 | 6,959 | [2] | 8,077 | [2] |
Restructuring charges | 0 | 0 | 0 | 0 | 286 | 0 | 0 | 0 | 0 | 286 | ||
Total operating expenses | 5,369 | 5,175 | 5,647 | 5,613 | 5,825 | 5,620 | 5,861 | 5,506 | 21,804 | 22,812 | ||
Loss from operations | (1,197) | (695) | (1,121) | (1,140) | (1,702) | (1,148) | (1,215) | (664) | (4,153) | (4,729) | ||
Interest and other income (expense), net | (58) | (155) | (220) | (65) | 567 | (57) | 503 | (205) | (498) | 808 | ||
Loss from operations before provision for income taxes | (1,255) | (850) | (1,341) | (1,205) | (1,135) | (1,205) | (712) | (869) | (4,651) | (3,921) | ||
Income tax expense (benefit) | (53) | 2 | 29 | (6) | 102 | 23 | 51 | 6 | (28) | 182 | ||
Net loss | $ (1,202) | $ (852) | $ (1,370) | $ (1,199) | $ (1,237) | $ (1,228) | $ (763) | $ (875) | $ (4,623) | $ (4,103) | ||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ (0.27) | $ (0.19) | $ (0.31) | $ (0.27) | $ (0.28) | $ (0.28) | $ (0.17) | $ (0.20) | ||||
Weighted Average Number of Shares Outstanding, Basic | 4,520 | 4,460 | 4,445 | 4,434 | 4,432 | 4,431 | 4,420 | 4,417 | 4,465 | 4,425 | ||
Weighted Average Number of Shares Outstanding, Diluted | 4,520 | 4,460 | 4,445 | 4,434 | 4,432 | 4,431 | 4,420 | 4,417 | 4,465 | 4,425 | ||
[1] | Includes related party amounts of $0 and $1,313 in 2017 and 2016, respectively. See Note 13 for additional information on related party transactions. | |||||||||||
[2] | See Note 7 for summary of amounts included representing stock-based compensation expense. |